Shares in Hikma Pharmaceuticals PLC (LSE:HIK, OTC:HKMPF) slumped over 7% as the drug maker reported flat group revenue in the first half and lowered its generics guidance.
Guidance was cut due to highly "competitive" conditions in the US and slower than expected ramp up of recent launches, the FTSE 100-listed company said.
The revised guidance is for US$650-675mln for the Generics business, compared to a City consensus of US$742mln, implying around a 10% cut at the revenue level and 30% at the profit level.
Revenue was flat at US$1.21bn in the first half, while operating profit slid 27% to US$239mln, and EPS was down 29% at 76.2c.
An interim dividend of 19c per share has been announced.
"Double-digit profit growth in our injectables and branded businesses has helped to offset a decline in generics caused by industry-wide competitive pressures," said Said Darwazah, executive chair and chief executive.
"We expect to maintain good momentum in branded and injectables and for generics to return to growth in 2023."
Shares were trading lower at 1,636.50p in London.
Broker Peel Hunt said the results were in line with consensus on revenue, core operating profit and EPS, "but investors will likely focus on the change in guidance".
"While there may be some small upward changes in Branded, there will almost certainly be some downward revisions again in Generics."
The guidance cut would be around a 8% cut to group core operating profit excluding any positive impact from Branded, with the net effect being circa a 6.5% reduction, analysts said.