Hikma Pharmaceuticals decides not to sell Injectables business

FTSE 250-listed company Hikma Pharmaceuticals has announced that following the conclusion of its strategic review of its global Injectables business, it has decided that the business should remain part of the Hikma Group.

FTSE 250-listed company Hikma Pharmaceuticals has announced that following the conclusion of its strategic review of its global Injectables business, it has decided that the business should remain part of the Hikma Group.

The reason behind the decision is that it sees the business as holding a unique position from which to create 'significant further value' by leveraging its manufacturing facilities, product portfolio, R&D pipeline and global distribution platform.

The group also said it has seen 'significant' interest in the business from third parties, which it believes demonstrates both the attractiveness and and strength of the business.

Injectables is currently performing 'very well', and the board is confident it can execute its growth strategy.

Said Darwazah, the Chief Executive Officer of Hikma, said: "After a thorough review of strategic options for the Injectables business, we are confident that retaining and continuing to invest in this business is the best option for shareholders. Injectables offers excellent long-term growth prospects and will remain an integral part of our overall growth strategy.

"By retaining the business, we will also continue to benefit from our diversified business model, which combines our global Injectables business with our oral generic business in the US and our extensive presence and experience in the Middle East and North Africa."

The decision proved less than popular with the group's shareholders, with the share price declining 6.04% to 925.50p by 09:00 Wednesday.

NR

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
IAG's share price is ready for take-off - here's how to play it
Trading

IAG's share price is ready for take-off - here's how to play it

The owner of British Airways has had a turbulent year, but is now worth a punt. Matthew Partridge explains the best way to play it.
8 Sep 2020