Hikma Pharmaceuticals plc (HKMPY shares surged to a seven-month high Wednesday after the generic drugmaker said new products and stronger sales will boost 2017 earnings.
Hikma pegged its full-year revenue forecast at $2.2 billion on a constant currency basis and held its generic drugs sales forecast steady at $800 million. The estimates followed full-year 2016 revenues of $1.95 billion and core operating profit of $419 million.
"Hikma has delivered a solid first half performance in a transitional year. Our global Injectables business is performing well, with revenue growth and strong profitability driven by a favourable product mix," said CEO Said Darwazah. "We continue to successfully transfer the Bedford products to our injectables facilities. By re‐introducing these products to the market and increasing our investment in R&D, we are building a strong pipeline to support future growth."
Hikma shares gained 6.5% in early London trading to change hands at 2,258 pence each by 08:20 GMT, the highest since August. The stock has gained more than 29% over the past three months, far ahead of the 1.58% advance for the Stoxx 600 TMI Pharmaceuticals Index.
Hikma's recent gains reflect optimism that drug approval procedures in the United States -- where 70% of the company's pipeline is targeted -- will be streamlined under President Donald Trump's administration.