Hikma Pharmaceuticals Share Discussion Threads

[bantam175] 21/3/2018 14:52

Anyone know just how good this news is?

[r ball] 15/3/2018 19:14

Yes but the fundamentals have changed since then. Look at Teva too

[cumnor] 15/3/2018 16:22

Pleased for HIk holders-quite a few shorts crucified since yesterday. Works both ways.

[bantam175] 15/3/2018 16:18

Less than 12 months back one target was £30+.

With a new captain at the helm who knows where we'll end up.

Look what Rose did at M&S.

[isstaaz] 15/3/2018 15:51

The reason this is flying is that Citigroup upgrades to buy with target of 1,250p. I don't think the top will be called yet

[nickg100] 15/3/2018 10:04

They'll call the top by lunch time if they don't slow down lol Excellent few days. Impressed :-)

[r ball] 15/3/2018 08:43

Hmm. I think the bottom has been called.

[nickg100] 15/3/2018 08:40

Wow! HIK are on fire! - Where and when will the old girl stop going north? Great to see this turnaround.

[suetballs] 15/3/2018 08:23

A dog having its day.
Yippee!
Suet

[rafieh] 15/3/2018 08:12

Shorts are scrambling for exit.

[eastbourne1982] 14/3/2018 22:32

Unless the pharma sector is dead and buried this will get a takeover bid within the next 6 - 12 months.

Show me another pharma company doing the kind of cash flow Hikma is with a valuation of just over 2 billion.

[rafieh] 14/3/2018 13:30

You may not need to wait that long.?

[r ball] 14/3/2018 12:53

Give it a year to recover

[gerrym two] 14/3/2018 11:21

Sold at 970 and was very happy too....thought it could have went the other way ! What's the views on direction from 947....should stabilise ?? GLA

[nav_mike] 14/3/2018 10:09

At the end of the day a lot of calculations and valuations will need to be re-done in light of the impairment charge, but there are also fundamental strengths in the business which are now apparent

Happy to let the dust settle for a while and see some further analysis.

There is potentially a nice short term double bottom being formed. I had 985 as an important resistence level, so was happy enough to sell for in excess of that

Edit : Just seen that there was an analysts call at 9:30 and since then the price has come off....maybe it did get too frothy all in one go

[mj19] 14/3/2018 09:55

So market going up on what if

[eastbourne1982] 14/3/2018 09:37

Cash flow here is massive relative to the market cap (for a pharma).

Long term this will be a lot higher than £10 or it will get taken over.

Even in a tough year debt was reduced significantly.

Short term who knows what will happen here however if these go anywhere near £9 again I will be adding.

[nav_mike] 14/3/2018 09:29

Closed out and took profits (probably too soon) but was happy with 858 to 1003 in a couple of weeks.

Dont often see a FTSE stock up 15% in a day so decided on caution

Looking at SETS though, it could go higher still today so good luck to all holders.

[fhmktg] 14/3/2018 08:57

Cash is king, all the rest is balance sheet management.

[nav_mike] 14/3/2018 08:41

Easier to be taken over as per the weekend Telegraph article?

[broadwood] 14/3/2018 08:37

From memory these have been well over £20 not too long ago - so I guess, market thinks its already in the price.

Anyway,here's a summary.

- Hikma reported an operating loss of $747m in 2017 compared with a operating profit of $302m the previous year as increased competition in its US market weighed on its generics business.

Hikma's generics business reported an operating loss of $1,082m in 2017, largely due to the $1,070m impairment of the West-Ward Columbus business. This came as the firm reduced its expectations for the West-Ward Columbus marketed portfolio and pipeline amid increased pricing pressure.

'The increasingly competitive dynamics of the US market, including intense pricing pressure, had a material impact on our Generics business and, in particular, on West-Ward Columbus, the firm said.

Hikma reported a loss before tax of $738m in 2017, down 451% while core profit before tax was $328m, down 9% compared to 2016.

Operating cash flow rose to $443m in 2017, compared with $293m in 2016.

Group revenue was $1.94bn, down from $1.95bn the previous year.

Global injectables revenue declined by 1% to $776m. In constant currency, global Injectables revenue was in line with 2016.

Generics revenue was $615m in 2017, up from $604m in 2016.

Branded revenue was $536m, down 4% compared with $556m in 2016 as good growth in Egypt, the GCC and Sudan, partially offset by more challenging operating conditions in other markets.

The firm said it expect injectables revenue in 2018 will be in the range of $750m to $800m, while generics revenues will be in the range of $550m to $600 and core generics operating margin in the low single digits.

Said Darwazah, Executive Chairman of Hikma, said: 'We delivered a solid performance in 2017 at a challenging time for our industry, demonstrating the benefit of our diversified business model. Profitability in our Branded business remained stable and our Injectables business was resilient, maintaining strong profitability despite new competitors for our top products and benefiting from our strong market position in the US hospital segment.'

'The increasingly competitive dynamics of the US market, including intense pricing pressure, had a material impact on our Generics business and, in particular, on West-Ward Columbus. This was further impacted by the delay in approval for our generic version of Advair Diskus. As a result of these headwinds, we have had to take an impairment related to the West-Ward Columbus business to reflect our updated view of the fair value of this business.'

[r ball] 14/3/2018 08:26

Calling the bottom?

[nav_mike] 14/3/2018 08:02

Well I was expecting a huge drop on that impairment charge...but we have been pushed up sharply in the opening auction

Currently uncrossing at 943!!

WTF is going on?

[mj19] 14/3/2018 07:58

FTSE 250-listed Hikma Pharmaceuticals reported revenue of USD1.94 for 2017, down from USD1.95 in 2016, as the drugmaker swung to a reported pretax loss of USD738 million from a profit of USD210 million.The company took a USD920 million charge in the year related to the impairment of West-Ward Columbus' intangible assets. Before exceptional items, profit still fell 9% to USD328 million from USD359 million. Hikma proposed a full-year dividend of 34 cents per share, up from 33 cents the year beforeThe company said it expects Generics revenue to be between USD550 million to USD600 million in 2018, and core operating margin in the low single digits before adjusting for lower depreciation related to the impairment taken in 2017. Generics revenue in 2017 totaled USD615 million, up from USD604 million in 2016.Injectables revenue in 2018 will be in the range of USD750 million to USD800 million, compared to a USD776 million reported for 2017 which was down 1% on 2016, as increased competition in the US is offset by new launches and continued growth in the MENA and Europe."We delivered a solid performance in 2017 at a challenging time for our industry, demonstrating the benefit of our diversified business model," said Hikma Executive Chairman Said Darwazah.

[sandeep67] 14/3/2018 07:56

oh dear..bottom line is smashed. Expect sharp drop