Hikma announces tie-up with Vitabiotics

The division, which accounts for 40 per cent of group revenues, will further benefit from a tie-up with UK vitamin and supplement firm Vitabiotics, announced alongside these results. The deal will give Hikma exclusive rights to market five of Vitabiotics' specialist products in 15 of its Mena markets, and the full range of products in five markets. Hikma shares rose more than 4 per cent on the back of the statement.

Revenues in the generics division, which focuses on oral generics in the US, plunged 38 per cent to $79m. But Khalid Nabilsi, chief financial officer, said a resurgence could be expected thanks to last month's $2.65bn acquisition of Roxane Laboratories. This deal will make Hikma the sixth largest player by revenues in the US generics market and brings with it 88 products in specialised and niche markets as well as an experienced research and development team. The company expects the deal to boost adjusted EPS from next year. Mr Nabilsi added that Bedford, which it acquired last year, was now fully integrated into its injectables business and had received approval for its first two products ahead of schedule.

The group derives 45 per cent of its revenues from the Mena region. But Mr Nabilsi said the "fundamentals for growth are very strong" despite the rampant volatility currently evident in emerging markets. He stressed the group's solid growth strategy, including a plan to build a stronger presence in Sub-Saharan Africa and Kazakhstan and make "small bolt-on acquisitions".

Prior to the results, analysts at Barclays expected adjusted pre-tax profits of $401m, leading to EPS of 154¢ for the full year, up from $387m and 150¢ in 2014.