London: Hikma Pharmaceuticals said a strong performance in US generics and product launches helped its first-half revenue rise 11 per cent and put it on track for similar growth for the year.
The Jordon-based company, which sells off-patent generic drugs under its own brands and in-licensed products across the Middle East and North Africa, and generics in the US, reported sales of $357.7 million (Dh1.3 billion) and adjusted operating profit of $73.2 million, up 20 per cent.
"We remain confident that we will achieve our target of low teens revenue growth for the full year with improved gross margin compared to 2009," Chief Executive Said Darwazah said in a company statement released yesterday.
The company said sales and profitability in its generics business were exceptional, while sales of its branded products, which were stable, would improve in the second half.
Hikma said its record on quality and compliance had helped the generics business, particularly in the US, where it had benefitted from competitor's manufacturing problems.
"In the US we did extremely well. We've seen revenue go up by 41 percent to $87 million," CEO Darwazah said.
"There are always opportunities where you find yourself sole provider for one or two products for a certain period of time, and that helps your top and bottom line."
In its branded business, changes in regulations in Algeria meant Hikma had to relaunch products, which dampened branded growth in the first half.
"We have taken all the necessary action to make sure the second half will be on target," he said.
"Algeria is such a big part of our overall business in Mena, (Middel East and North Africa) if Algeria does well that pushes up our overall business in Mena. But we are also expecting improvement in other markets in the second half."
He said the markets in the region were still growing more than 10 per cent and Hikma was countering pricing pressure by shifting to specialised product from commodity products.