Hikma raises sales guidance as profits rise on Covid-related demand

Hikma Pharmaceuticals lifted sales guidance for its injectables business on the back of higher demand for key medicines during the coronavirus pandemic as it reported a rise in interim profits.

The company said it expected 2020 revenue from the injectables business, the firm’s largest unit, to be in a range of $950m - $980m, compared with previous forecasts of growth in low to mid-single digits as demand soared for its products to treat coronavirus patients in the US and Europe.

Pre-tax profit rose to $274m from $226m year on year for the six months to June 30on an 8% rise in revenue to $1.2bn. Its core operating profit rose 15% year-on-year to $284m and the interim dividend was increased by 2 cents to 16 cents per share.

Revenue at the injectables business grew 13% to $485m. Hikma also raised the revenue outlook for its generics division to $720m - $760m, from $700m - $750m.

Hikma supplies the steroidal drug dexamethasone which has been touted as a possible new treatment for Covid-19.

The company said it had not seen any hit to its supply chain from the pandemic and that its manufacturing sites had remained open.