Libya and Egypt unrest hurts Hikma Pharmaceuticals

The Jordan-based supplier of branded and generic drugs experienced "unprecedented disruptions in several markets", but managed to post a 10.4pc increase in overall first-half revenues to $394.8m (£241m) as strong sales of its branded products in Algeria, Sudan and Iraq helped to offset disruption in other countries.

Despite the rise in revenue, pre-tax profits slid to $39.9m from $67.5m. Hikma said that profitability had been affected by factors such as the discontinuation of sales of high-margin gout drug colchicine; unrest in the Middle East and North Africa (MENA); and increasing salaries in the region.

Although unrest hurt some of its markets during the first half of the year, Hikma indicated that Egypt and Tunisia were recovering and it has made contact with Libya's National Transitional Council, with a view to supplying products to the country. Said Darwazah, Hikma's chief executive, said: "That they've established some normalcy is a very positive step and good news for us, too."

He added that Hikma was scouting for acquisitions in the region, with Morocco and North Africa particular areas of interest.

Hikma said it remained on track to meet its full-year target of around 7pc growth in revenue.