(MENAFN- ProactiveInvestors)-- ADDS BROKER COMMENT AND UPDATES SHARE PRICE -- The Generics business is letting the side down at Hikma Pharmaceuticals (LON:HIK) with slower than expected growth in the gout treatment colchicine. Revenue guidance for the Generics business has been lowered to around US$150mln versus previous guidance of US$175mln to US$200mln while the adjusted operating margin percentage is projected to be in the high twenties. The reduction in expectations for Generics operating profit in 2015 will be partly offset by the stronger performance in other parts of the business Hikma said. The group said its Injectables business is continuing to perform very well while the Branded business is trading well across most markets though in Iraq and Sudan political disruptions and currency movements respectively have had a negative impact. On a reported basis reflecting exchange rate movements since the beginning of the year Hikma now expects Branded revenue growth in the mid-single digits in percentage terms with a slight improvement in adjusted operating margin. 'We are delivering strong growth in most of our MENA [Middle East and North Africa] markets in constant currency and achieving excellent profitability in our Injectables business whilst continuing to drive value from the legacy products in our Generics business' said Said Darwazah chairman and chief executive officer of Hikma. 'We remain focused on penetrating the colchicine market and we are confident that we can successfully grow our market share in the coming year' he added. The company also confirmed it has secured US$1.175bn to help finance the Roxane Laboratories deal. Panmure Gordon said: 'Over the longer term Roxane has the potential to be transformational in the US. 'However with the lowered expectations for the Generics business we will be reviewing our estimates' the broker added. Shares in Hikma were down 4.7% at 2061p at lunch.
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