Hikma Pharmaceuticals Share Discussion Threads

[r ball] 29/7/2015 17:29

conviction buy.

[broadwood] 29/7/2015 12:17

Jefferies ups Hikma to 'buy', says Roxane deal is a 'game changer'



(ShareCast News) - Hikma Pharmaceuticals got a boost after Jefferies upgraded the stock to 'buy' from 'hold' and raised its price target to 2,615p from 2,134p as it integrates the company's "transformational" deal with Roxane Laboratories.
"In our view Hikma is transitioning to a period of remarkable growth as it executes on recent acquisitions and we expect share price momentum to continue despite the 12% rally," it said, adding that Hikma is now its preferred name in the EMEA generics sector.

Jefferies said the acquisition of Roxane, at $2.65bn, is a game-changer for Hikma in the US and provides a platform and pipeline to grow its business with opportunities to create further value from potential synergies and diversify its revenue base.

It noted that Roxane has 88 differentiated products across specialised segments which are highly complementary to Hikma's existing US business. The combination will create the number 6 player in the US generics market, from 20 previously, said Jefferies.

It raised its 2016 earnings per share estimate by 4% and 2017 by 14%, saying it believes the integration of Roxane combined with solid market fundamentals should improve Hikma's earnings power despite higher interest charges and equity dilution to shareholders.

[r ball] 29/7/2015 04:44

target £25 mid. upper £30

[discodave4] 28/7/2015 21:46

Thanks R Ball, useful info there:Cazenove :- we calculate Adjusted EPS accretion of 2% in 2016, 7% in 2017 and high teens accretion beyond.So dilution payback 2017+.DD

[leeson31] 28/7/2015 21:11

No worries Dave. I see also roxanne does have $$1b in assets on their balance sheet too, so its fwd rebs/ebitda plus assets roo they get for the usd2.65b, so a nice bit of nav there too.

Karateboy: imo, these will breakout, amd trend up, until jan 2016 where which time we may see some selling, but i dont think it'd be a trend reverser.. All this subject of course to no curveballs like greece, or china, or the unknowns. And thereagain, so far the curveballs have been buy opps. But as long as the europeans are handing out qe, amd we see uk and usa continue gdp growth, amd int rates remain lowish, then i think the cash will simply just continue into equities....

Now lets see some low volumed share price weakness, so i can get in. :) id be v happy with ~2150p

Cheers

[r ball] 28/7/2015 21:07

see ftalphaville for analyst reaction. proce high but accreative. buy.

[karateboy] 28/7/2015 20:58

It is good to see if share price breaks through £23.5 which new 40m shares are priced. These shares can not be disposed of until after January 2016.

[discodave4] 28/7/2015 20:51

Thanks Leeson,Had these on my watch list for a while but wanted to wait to see how the bid for Roxane panned out.I only quickly read through the RNS and just picked up that Roxane profit before tax FY 2014 was $24m, about +7.5% in eps for HIK 2015 FY (assumed c +10% for improved efficiencies etc. yet there would be 17% share dilution). However, Roxanne did incur some larger one-off and non recurring costs of $39m in FY 2014, so excluding these costs their profit before tax would equate to about +20% eps for HIK.2016 and beyond it should be even better I guess, so yep looks a good deal and potentially transformational for HIK.Thanks again for spending the time to help, much appreciated - although the market reaction suggested it is indeed a good deal, as a humble novice pi I have to prove that to myself, after-all, it's my hard earned that's at stake and I'm not a gambler or a sheep!.DD

[discodave4] 28/7/2015 19:23

Me too!.Naive question so apologies upfront - share dilution 17%, enhanced eps growth pa circa 10%.......good deal?, will accept that the market knows best rather than a relative newbie!.Help -TIA.DD

[leeson31] 28/7/2015 18:06

A bit of pullback and id buy some. Great co. and great acquisition today...

[r ball] 28/7/2015 17:45

concur. conviction buy.

[broadwood] 28/7/2015 09:34

Drug developer Hikma Pharmaceuticals signed a deal to buy two firms from Boehringer Ingelheim in transactions worth a total of $2.25bn.
FTSE 100 listed Hikma planned to buy Roxane Laboratories and associated company Boehringer Ingelheim Roxane in a cash and shares deal that would make Hikma the sixth biggest company by revenue in the US generics market.

Hikma was to pay $1.18bn and issue 40m new shares, about 16.721% of the company, to Boehringer. At a share valuation of £23.50 per share, the deal was worth $2.65bn in total.

Hikma also agreed to make contingent cash payments of up to $125m, subject to the achievement of certain performance milestones.

In a statement, the company the drug company said it expected its new acquisition to achieve an earnings margin of about 35% over the medium term, and it should lift it earnings per share from 2016 onwards

[broadwood] 28/7/2015 07:08

Transformational deal. Big player in US now.

[karateboy] 28/7/2015 07:02

Hik has bought Roxane with cash and issuing 40m shares. In a long term is good for Hik.

[r ball] 20/7/2015 18:24

Not if it causes indigestion. Sector buoyant. Compelling.

[discodave4] 20/7/2015 07:54

HIK is on my watchlist.Any views here with regards to the Boehringer bid (Roxane Labs)?.GLDD

[coppertrader] 17/7/2015 12:15

London, 15 July 2015 – Hikma Pharmaceuticals PLC ("Hikma") (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today announces it has it has received approval from the U.S. Food and Drug Administration ("FDA") for its supplemental Abbreviated New Drug Application ("sANDA") for thiotepa for injection USP, 15mg/vial.Thiotepa is indicated for the palliation of a wide variety of neoplastic diseases, with the most consistent results seen in tumors related to adenocarcinoma of the breast and ovary. It will be the second product previously marketed by Bedford Laboratories to be launched by Hikma in the United States. Thiotepa is currently on the FDA's Drug Shortages list and Hikma has the only approved active US ANDA.Said Darwazah, Chairman and CEO of Hikma said, "We are making good progress with the transfer of the Bedford products to our manufacturing facilities, leveraging our strong R&D, regulatory and manufacturing capabilities. Thiotepa is used in the treatment of a variety of cancers. It has been on shortage in the US for several years and we are very pleased to be able to provide a resolution to this critical situation."More:

[e factor] 28/6/2015 17:26

Should we be bracing ourselves for 1800p?

[e factor] 21/6/2015 21:29

I would be keen to hear of any stocks, peeps think are about to begin a strong run up over years, like Hikma has done.

Any ideas?

[e factor] 20/6/2015 18:22

Remember, we're playing in a defensive sector here.

[salpara111] 18/6/2015 11:43

have been watching for a while but it was clearly overbought, partly due to it being run up on entry to the FTSE 100.
The problem now is that the market cap has fallen back far enough that it would be relegated if there was a reshuffle tomorrow.
I am keeping them on my monitor but am mostly in cash until I see what the clowns in Greece do.
If they really do decide to push the self destruct button I would imagine there will be a market drop around 3-5% but it will be relatively short lived and as such I see it as a buying opportunity.

[r ball] 16/6/2015 19:56

Revert to mean. It's just noise. Ignore

[coppertrader] 16/6/2015 10:58

Whats going on with this sp? Any reason for the constant decline?