Shares in Hikma Pharmaceuticals rose Thursday after the company upgraded its 2013 revenue growth forecast following a "strong start to the year".
The group expects revenue to rise 13% this year, up from its previous guidance of 10%, driven by the performance of Branded and Injectables and Generics businesses in the year-to-date.
The Branded and Injectables unit is on track to meet the firm's full-year guidance while the Generics arm is continuing to benefit from its doxycycline product which is delivering revenue ahead of forecasts.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"We have made a very good start to 2013 across all of our businesses and I am pleased to be able to raise our group guidance for the full year," said Chief Executive Officer Said Darwazah.
The company's branded business was boosted by the introduction of new products and enhancements in sales and marketing activities. The unit has experienced improvement in markets including Algeria, Egypt and Saudi Arabia.
In January, Hikma completed the acquisition of the Egyptian Company for Pharmaceuticals and Chemical Industries which has since been fully integrated.
Branded revenue is expected to increase 11% in 2013, with a slight improvement in adjusted operating margin.
The Injectables division has been performing well in the US, supported by new product launches, price improvements and our continued focus on operational efficiencies.
Full-year guidance for the Generics business is for revenue of $150m and operating margin in the low teens.
"Overall, our diversified business model is positioning the group to deliver another strong year in 2013," Arabia said.
Shares climbed 2.32% to 1,014p at 12:43 Thursday.
RD
-
Will the Bitcoin price hit $100,000?With Bitcoin prices trading just below $100,000, we explore whether the cryptocurrency can hit the milestone.
-
Inheritance tax receipts jump 11% even before Autumn Budget overhaulOfficial figures show inheritance tax receipts are rising even before the chancellor’s changes to reliefs
