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.

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.

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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