Hikma raises revenue guidance

In turn, management has raised its guidance for 2020 – expecting injectables revenues of $950-980m, and generics revenues of $720-760m. The group had previously projected low-to-mid single-digit-growth and a range of $700-750m respectively. It has also lifted its margin guidance for both segments.

The US – Hikma’s largest injectables market – generated sales growth of a tenth during the six months to June, with coronavirus-related treatments helping to mitigate the impact of heightened competition for some products. That pandemic-related usage also served to offset waning demand for injectables used in elective procedures, which were delayed or cancelled during lockdown.

That said, Hikma is not resting on its laurels - it launched six products in the US, 17 in the Middle East and North Africa, and 18 in Europe and submitted 150 filings to regulators across all markets. Moreover, the group has signed a non-exclusive supply agreement with Gilead (US:GILD) to make injectable ‘Remdesivir’ – an anti-viral drug which has famously been granted emergency use authorisation for Covid-19.

Meanwhile, in generics, the group launched three products from its research and development pipeline. Its submission for asthma treatment ‘Advair Diskus’ is under review in the States, with a launch anticipated in the second half. The ‘branded’ business launched 34 products, as well as 43 filings to regulatory authorities. For the half-year, branded’s organic sales rose by 14 per cent to $275m, bolstered by marketed product growth in its largest geographies of Saudi Arabia and Egypt.

Numis has upgraded its adjusted EPS estimate for 2020 by 8 per cent to 166¢ , from 150¢ in 2019.