Hikma wants new US generics business Roxane to boost sales
Hikma has said it is looking to a newly-acquired US generics business to add to revenues in 2016, after full-year profits dipped.
In results announced today, Hikma said pre-tax profits fell 8% to $355 million for the full year 2015 after an "exceptionally strong" year in 2014.
The Jordan-based, London-listed group said its revenue fell 3% to $1.44 billion in reported terms, although there would have been a 2% increase had it not been for currency headwinds.
Generics revenues fell 30% to $151 million compared with 2014, when Hikma exploited market opportunities that have since declined due to increased competition.
However, following its purchase of the US generics business, Roxane, from Boehringer Ingelheim (BI) last month for $650 million, Hikma is predicting sales of $2-2.1 billion for 2016.
Roxane will contribute revenues for about 10 months and is forecast to contribute revenues in the range of $700-$750 million in 2017.
CEO Said Darwazah said the integration of Roxane will be a "key focus" this year, adding that the acquisition will "transform" its non-injectable business in the US, adding products, an attractive R&D pipeline and greater scale.
In 2014, Hikma also bought a US injectables business, Bedford Laboratories, from Ben Venue, part of BI.
It sold certain buildings in Bedford, Ohio, which were mothballed because of US Food and Drug Administration concerns over manufacturing standards, to Xellia Pharmaceuticals in November.