Hikma's full-year 2007 revenue jumps 41.6%

In its preliminary results announcement, Jordanian drugmaker Hikma Pharmaceuticals says that full-year 2007 revenue jumped 41.6% to $448.8 million, as underlying organic income grew 28%, driven by strong performances in its branded and injectables businesses.

The London-listed firm consolidated its position as the leading pharmaceutical player in the Middle East and North Africa region by spending around $300.0 million during the year on company takeovers. Hikma entered the Egyptian market through the acquisition of Alkan Pharma (Marketletter August 20, 2007) and strengthened its position in core markets through the purchase of Arab Pharmaceutical Manufacturing. It also entered the injectable oncology sector by acquiring Ribosepharm and Thymoorgan in Germany (Marketletter January 29, 2007) and expanded its cancer portfolio through new product acquisitions.

In 2007, Hikma began production in its new cephalosporin plant in Portugal for the MENA region and Europe in 2007 and for the USA in early 2008. It also launched 28 new products, received 129 approvals across all businesses and geographic regions and submitted 74 regulatory filings in MENA, the USA and Europe. The firm raised gross proceeds of $160.0 million in January through the placing of 17 million new ordinary shares, which funded the acquisition of APM, strengthened its balance sheet and enhanced its flexibility to finance future growth. Revenue from Hikma's branded business, the company's largest segment, increased 52.9% to $198.9 million. Excluding the acquisitions of JPI and Alkan, underlying sales growth was 32.0%, primarily due to growth across all MENA markets. New product introductions and more focused sales and marketing through its 1,000-strong force of medical representatives. Its injectable business contributed 27.0% of total group revenue in 2007, up from 21.3% the year before, as income from this segment rose 79.3% to $121.2 million.