Reuters: Hot Stocks: UPDATE 1-Hikma raises 2013 rev forecast on strong doxycycline sales

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UPDATE 1-Hikma raises 2013 rev forecast on strong doxycycline sales May 16th 2013, 08:12 Thu May 16, 2013 4:12am EDT * Expects 2013 revenue to rise about 13 pct * Shares rise as much as 5 pct (Adds CEO quote, details, share movement) May 16 (Reuters) - Hikma Pharmaceuticals Plc raised its full-year revenue forecast as its generic antibiotic doxycycline generated revenue ahead of its expectations, sending its shares up as much as 5 percent. The company, founded in 1978 in Jordan, has been able to take advantage of a drug shortage in the United States as several generic drugmakers have been forced to cut capacity in the face of stringent regulatory scrutiny. Hikma said it expected group revenue to rise about 13 percent in 2013, up from its previous forecast of around 10 percent. The company reported revenue of $1.11 billion in 2012, with its generic business contributing $103.7 million and injectables contributing $470 million. Hikma said it continued to expect its largest injectables business to achieve low double-digit revenue growth. "The significant contribution from doxycycline in the first half of 2013 is enabling us to cover the increased cost of remediation in our generics business," Chief Executive Said Darwazah said. The drugmaker stopped commercial production at its Eatontown, New Jersey plant in November to ensure compliance with U.S. FDA guidelines. Hikma said it expected the generic business to incur one-off remediation costs and inventory write-downs of around $25 million to $30 million in the full year. The company said its injectables business is performing "extremely well" in the United States, driven by new product launches and price improvements. Hikma said in April it would keep its fast-growing injectables business after weighing up a number of unsolicited approaches for the unit. The company's shares, which have risen 13 percent since it announced it will keep its injectables business, were up 3.5 percent at 1026 pence on the London Stock Exchange on Thursday morning. (Reporting by Ankur Banerjee in Bangalore; Editing by Don Sebastian) Link this Share this Digg this Email Reprints

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