Hikma takes a tumble as City frets over asthma drug

Shares in Hikma took a painful hit on Thursday, tumbling to their lowest level since 2014 amid gloomy prospects for the drug-maker.

Hopes that Jordan-based Hikma would have good news on its generic version of a key asthma drug were also dashed, with the pharma group unable to say when the drug might win approval. The company revealed in May that its version of Glaxo’s Advair had not been given the green light by the US regulator.

Hikma cut forecasts for its generics division for the second time since May and said it could not predict when the pricing pressure it was experiencing in the US over generic drugs would ease. Shares tumbled 8% to 1213.4p.

Revenues for generic drugs are likely to fall from a previously forecast $670 million (£520 million) to $620 million, this year, largely because of consolidation among American clients and greater competition from US drug companies focusing on the generics market.

The group’s branded business also looked off colour, with lower shipments during Ramadan and Eid. Total revenue for the company is expected to be about $2 billion, down from an expected $2.2 billion.

Broker Numis said the update from Hikma was “less bad than feared”. Shares in Hikma have fallen by 35% this year and the company is now valued at below $3 billion.

Finance director Khalid Nabilsi said that its branded drugs were on track to offset falling sales in the generics business, in the second half. First-half sales were lacklustre, up just 1% at $895 million, and operating profits slipped by $8 million to $113 million.