Hikma Pharmaceuticals shoots higher as Barclays hails Roxane deal

2nd Sep 2015 11:57

(ShareCast News) - Hikma Pharmaceuticals got a shot in the arm on Wednesday as Barclays lifted its price target on the stock to 2,760p from 2,050p.The bank said Hikma has transformed its US exposure and long-term visibility through the $2.65bn acquisition of US specialty generics company Roxane."The closure of the deal transforms Hikma's presence in the US, its long-term growth trajectory, and the reliance on shortage drug opportunities," said Barclays."Boosting outer year earnings by over 20%, the deal revolutionises future opportunities, not only via portfolio-bolstering but also enabling lucrative paragraph IV and first-to-file opportunities."Aside from the deal, it pointed to other significant sources of upside to its base-case assumptions, such as the accelerated transfer of Bedford products, the scope for cost savings and surprise product reintroductions.Barclays said Jordan-based Hikma has a strong portfolio of branded products and with its high barriers to entry, the group is well positioned to benefit from the growing middle class.Barclays rates the stock at 'overweight'.At 1203 BST, Hikma shares were up 3.6% at 2,304p.