Hikma Pharmaceuticals cut guidance for its generics business on Thursday, citing a delay to a drug launch.
The company noted that Jazz Pharmaceuticals now expects to launch a generic version of narcolepsy treatment Xyrem in late 2022 or possibly even January 2023.
In 2017, Hikma entered into a settlement agreement with Jazz to sell an authorised generic of Xyrem. Under the terms of the agreement, Hikma has a date certain launch of 1 January 2023, or earlier depending on certain market conditions, and 180 days exclusivity.
Hikma now conservatively assumes it will launch the treatment on 1 January 2023 and that the revenue and profit contribution from the exclusivity period will shift to the first half of next year.
As a result, it now expects its 2022 Generics revenue to be between $710m and $750m and core operating margin to be around 20%, with the lower end of the range reflecting the possibility of further price erosion in the US generic market. This is down from previous guidance for revenue of $820m and core operating margin of 24% to 25%.
