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Hikma Pharmaceuticals predicts profit rise as demand for Covid drug treatment ramps up

Hikma Pharmaceuticals has supplied drug treatment across the world

Hikma Pharmaceuticals (LON:HIK) announced on Friday that it expects its yearly operating profit to rise during 2021 having been tasked with supplying emergency treatments for Covid-19 patients.

The FTSE 100 company confirmed its core operating profit rose by 11% to $566m during 2020, up from $508m the year before. Hikma said its profit was driven by strong growth in sales of Generics and Injectables.

The London-based company’s core revenue rose by 6% to $2.3bn.

Despite the upturn in profit and revenue, Hikma Pharmaceuticals’ share price levelled at around 2,341p per share post-lunchtime on Friday following a morning of peaks and troughs. 

The drugs company has been called upon to supply its emergency drug treatment to nations across the world as demand soared during the pandemic.

The company confirmed it used its “strong foundation to meet increased demand for essential medicines used in the treatment of Covid-19,” while remaning focused on other apsets of its business. 

Siggi Olafsson, Chief Executive Officer of Hikma, commented on the company’s performance during the pandemic

“Thanks to our strong foundation, flexible and high-quality manufacturing capabilities, robust supply chain and the unwavering dedication of our people to our purpose, Hikma was able to play a critical role in the pandemic. We responded rapidly to the changing needs of healthcare providers, supplying essential medicines used to treat COVID-19 patients, while continuing to provide the critical medicines our patients need every day,” Olafsson said.

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“Our response to the pandemic demonstrates the resilience of our business, which enabled us to deliver a strong financial performance and continued progress against our longer-term strategic objectives. We achieved good revenue growth in all our businesses and an improvement in core profitability.”

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