Hikma Pharmaceuticals (LON:HIK) saw shares rise nearly 8 percent on Wednesday, despite unexpected falls in both profit and revenue.
The company reported a 39 percent fall in net profit over 2016, with revenue coming in slightly below management expectations at $1,950 million. The group expects to report a revenue of $2.2 billion in 2017.
However, full-year core operating profit rose 2.4 per cent after weakness in its generic drugs business was more than offset by growth in its injectables and branded drugs.
The group made a net profit of $155 million in the 12 months ended December 31st, compared with $252 million the year before, and announced a final dividend of 22 cents a share.
Over the course of the year Hikma launched 206 products in different dosages and strengths, as well as receiving 343 approvals for products in different dosage forms.
Said Darwazah, Chairman and Chief Executive Officer of Hikma, said the group made “significant strategic progress in 2016”, despite the fall in both profit and revenue.
Darwazah noted that the acquisition of West-Ward Columbus was “transforming” the group’s Generics business. He continued:
“In the MENA, our reported results were impacted by the devaluation of the Egyptian pound in November 2016. However, our strategic focus on higher value products, combined with tight cost control, drove significant growth in operating profit in constant currency and a meaningful margin expansion.
“Our business today is stronger than ever. We are well positioned across our markets, with a large and differentiated portfolio and pipeline and we are confident in the future prospects of the Group.”
Hikma Pharmaceuticals shares are currently trading up 7.10 percent at 2,277.00 (0929GMT).