REG - Hikma Pharmaceutical - Final Results <Origin Href="QuoteRef">HIK.L</Origin> - Part 3

Hikma PharmaceuticalsAnnouncement

11/03/2015 07:02

- Part 3: For the preceding part double click  ID:nRSK1023Hb 

                                                                                                                                                                                                                                                                                                                                                  reviews and tests major acquisitions before they are considered by the Board·      The Board is willing and has demonstrated its ability to refuse acquisitions where it  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               considers the price is too high·      Dedicated integration project teams are assigned for the acquisition, which are led by the business head responsible for proposing  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               the opportunity·      Following the acquisition of a target, the finance team, the management team and the Audit Committee closely monitor its financial and non-financial 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               performance·      A variety of funding options are available to the Group to finance acquisitions                                                                         
 ·      Conduct                ·      The pharmaceutical industry and certain MENA markets are considered to be higher risk in relation to sales practices. Improper conduct by employees could seriously damage the reputation and licence to do business                                                                                                                                                                                                                                                                                                                                                                                     ·      Code of Conduct approved by the Board, translated into 7 languages and signed by all employees·      ABC compliance programme monitored by the CREC·      2,200    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               employees received ABC compliance training in 2014                                                                                                                        
 ·      Financial              ·      The Group is exposed to a variety of financial risks similar to most major international manufacturers such as liquidity, exchange rates, tax uncertainty and debtor default                                                                                                                                                                                                                                                                                                                                                                                                                             ·      Extensive financial control procedures have been implemented and are assessed annually as part of the internal audit programme·      A network of banking partners 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               is maintained for lending and deposits·      Management monitors debtor payments and takes action where necessary·      Expert external advice is procured to test and    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               enhance processes and ensure compliance·      Where it is economic and possible to do so, the Group hedges its exchange rate and interest rate exposure                   
 
 
 1  Based on the spot rates on 28 February 2015 of the Algerian dinar, the Egyptian pound, the Moroccan dirham, the
Sudanese pound and the Tunisian dinar against the US dollar 
 
 2  Before the amortisation of intangible assets (excluding software) and exceptional items, as set out in note 5 to the
financial information 
 
 3  Earnings before interest, tax, depreciation and amortisation.  EBITDA is stated before impairment charges and share of
results from associated companies. 
 
 4  Takeda and Elliot Associates also filed a motion for summary judgement against the US FDA and Hikma, as intervener
defendant, claiming that the FDA's approval of MitigareTM without a Colcrys reference or related patent certifications
violated the Administrative Procedure Act and that such approval was arbitrary and capricious.  On 12 January 2015, these
motions were denied by the US District Court and Takeda and Elliot filed for an appeal. 
 
 5  In 2014, amortisation of intangible assets (excluding software) was $14 million (2013: $15 million).  In 2014,
exceptional items included within operating expenses were $11 million (2013: $46 million) and related to the Bedford
acquisition. 
 
 6  Products are defined as pharmaceutical compounds sold by the Group.  New compounds are defined as pharmaceutical
compounds being introduced for the first time during the period  and existing compounds being introduced into a new
segment. 
 
 7  Totals include 71 dermatological and cosmetic compounds in 282 dosage forms and strengths that are only sold in
Morocco. 
 
 8  Totals include all compounds and formulations that are either launched or approved or pending approval across all
markets, as relevant. 
 
This information is provided by RNS
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