You are here: Home - Investing - Experienced Investor - News -

Share Centre stock of the week: Hikma Pharmaceuticals

Written by:
Helal Miah, investment research analyst at The Share Centre, explains why Hikma Pharmaceuticals is stock of the week.

Hikma is a pharmaceuticals company with Middle Eastern origins and is a recent entrant to the FTSE 100. Investors should appreciate that it is very distinct from its larger rivals in that its focus is on both branded and unbranded generic drugs and its sales exposure is geared towards the Middle East, North African and US markets. The group was founded in Jordan in the late seventies and grew as a result of demand for affordable drugs and the needs of a growing population in the region.

The company has performed well over the last two years with group revenue being driven by strong growth in the injectables business. Investors should be aware that there was some disappointment in the group’s October trading update, where sales of colchicine have been slower than expected, mainly due to competition. Despite this, as patented drugs expire, more manufacturing opportunities are arising and so it is likely that generic drugs will continue to take an increasing share of the market and the likes of Hikma Pharmaceuticals should benefit.

The acquisition of Bedford/Ben Venue and Roxane gives the group a further foothold in the US drugs market and integration continues to progress well. We believe there is much more growth to come from the group and as a result we continue to recommend the shares as a ‘buy’ for investors seeking capital growth and willing to accept a medium level of risk.


There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Crystal ball gazing: where to invest in 2016

As we start a brand new year, professional investors give their thoughts on where to invest in 2016.