Hikma shares hit by downgraded drug sale forecasts

Hikma boss Said Darwazah said competition was hotting up in the US - COPYRIGHT : JULIAN SIMMONDS

Hikma Pharmaceuticals shares have fallen more than 7pc after the drugmaker lowered its forecast sales for this year.

The FTSE 250 firm - which is pinning its hopes on a potential blockbuster generic inhaler product to rival GSK’s asthma drug Advair in the US - said revenues from its second biggest division, generics, will be $620m (£482m) this year.

This forecast compared to a $670m outlook in May and an $800m estimate in April. Overall full-year revenues are expected to be $2bn, down from its previous $2.1bn forecast.

Said Darwazah, chairman and chief executive of Hikma, warned that in the US, its largest market, “competition is increasing and pricing pressure is intensifying”.

Hikma’s plans to launch a rival Advair product hit a setback earlier this year when it failed to win US regulatory approval and said it no longer expected to launch the medicine this year.

In its update today Hikma said it was in discussions with US regulator the FDA about resubmitting the product, saying there were “no material issues”.

In its results for the six months to June 30, sales edged up 1pc to $895m, lifted by “resilient” trading in its biggest division, injectables. Operating profits dropped 7pc to $113m, down from $121m.

Hikma also announced it had expanded a licensing and distribution deal with Japan’s Takeda Pharmaceuticals, which will add new products to its operations in the Middle East and North Africa.

Hikma shares fell as much as 15pc in mid-morning trading, but rallied slightly by lunchtime, down 8pc on the previous day’s close at £12.24.