Is Hikma Pharmaceuticals about to run out of firepower and take a sideways step? JP Morgan Cazenove thinks so. As it downgraded its recommendation on the drugs group’s shares to a “relative underweight” last week, the broker said that it believed a slowdown at Hikma’s generics division over the next 12 months would more than offset growth in injectables, its largest unit.
In its most recent trading update, Hikma said that revenues in the generics division for the year just past were on course to hit the top end of its forecasts, supplementing strong growth in its injectables and branded drugs units. Aside from intense competition in some of its markets, it’s not obvious why the group should find itself moving into reverse.
Investors will
