REG - Hikma Pharmaceutical - Trading Statement

Hikma PharmaceuticalsAnnouncement

29/04/2022 07:30

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RNS Number : 7871J  Hikma Pharmaceuticals Plc  29 April 2022

Continued strategic progress and updated full year guidance following
Custopharm acquisition

 

London, 29 April 2022 - Hikma Pharmaceuticals PLC (Hikma, Group), the
multinational pharmaceutical group, today provides an update on current
trading.

 

Siggi Olafsson, Hikma's CEO, said:

 

"Hikma continues to make strategic progress, positioning the business for
future growth through new product launches, continued investment in R&D
and new strategic partnerships and acquisition, which are all driving our
ability to put better health within reach, every day.

 

Our acquisition of Custopharm, which closed last week, enhances our R&D
capabilities and pipeline while further expanding our portfolio of
differentiated injectable medicines.  More broadly across the Group, we are
seeing the benefits of our large and diverse portfolio which is helping us to
offset increased competition in the Generics business, and underpins our
confidence for continued growth this year."

 

Injectables

 

Our global Injectables business is performing well.  In the US, Hikma is a
top two supplier of generic injectable medicines by volume(1) with a broad
portfolio of close to 130 medicines. The return of elective surgeries
continues and our diverse portfolio provides us with the flexibility to
respond to the specific needs of our customers and address shortage issues. In
Europe, we are seeing a good performance from our own products which is
partially offsetting the anticipated reduction in contract manufacturing.  In
MENA, we are seeing good demand across our markets, with performance in line
with expectations.

 

Our Injectables business continues to make good strategic progress. In the US,
we are on track with new launches, and are pleased to add Custopharm's 13
approved products to our extensive US portfolio.  In MENA, we have enhanced
our biosimilar offering through our licencing agreement with Celltrion for
Remsima(®)SC, the first subcutaneous formulation of infliximab.

 

We are updating our guidance to include a contribution from Custopharm. We now
expect full year global Injectables revenue to grow in the mid to high-single
digits, compared with our previous guidance of low to mid-single digits. We
expect core operating margin to be in the range of 36% to 37%, up from 35% to
37%.

 

Generics

 

In our Generics business, the year has started slowly, reflecting increased
competition and the challenging pricing environment. These headwinds are being
partially offset by opportunities we are generating through our strong
customer relationships, broad portfolio and flexible local operations.

 

We continue to expect full year Generics revenue growth in the range 8% to 10%
and core operating margin in the range of 24% to 25%, assuming a mid-year
launch of sodium oxybate.  We expect Generics revenue will be weighted
towards the second half of the year.

 

Branded

 

Our Branded business is performing well, as we maintain our focus on key
therapeutic areas and chronic medications.  Our tier one markets, Algeria and
Egypt are performing strongly on a constant currency basis. Saudi Arabia has
had a positive start to the year in the retail business, while the timing of
government tenders will result in an overall weighting to the second half of
the year.

 

We continue to expect full year 2022 Branded revenue to be in line with 2021.
Excluding the $31 million impact from hyperinflation in 2021, we expect
Branded revenue to grow in the mid-single digits.

 

 

Final dividend and buyback

 

At our Annual General Meeting on 25 April 2022, our 2021 final dividend of 36
cents per share was approved and has been paid to shareholders. The final
dividend brings the total dividend for the full year 2021 to 54 cents per
share, an increase of 8% on 2020.

 

We have been executing our share buyback programme, as announced on 25
February. This reflects the Group's strong cash generation, balance sheet
strength and the Board's confidence in the future growth prospects of the
business. To date, we have completed an initial tranche of $150 million and
are currently progressing with a second tranche of $75 million.

 

Following the acquisition of Custopharm, we now expect core net finance
expense to be around $64 million, compared to our previous guidance of around
$55 million

 

We will announce our interim results for the six months ended 30 June 2022 on
4 August 2022.

 

 

 1  Source: IQVIA MAT through February 2022, generic injectable volumes by
eaches, excluding branded generics.

 

--  ENDS  --

Enquiries:

Hikma (Investors)

 Susan Ringdal                                                                +44 (0)20 7399 2760/ +44 7776 477050

 EVP, Strategic Planning and Global Affairs
 Guy Featherstone                                                             +44 (0)20 3892 4389/ +44 7795 896738

 Senior Investor Relations
 Manager
 Layan Kalisse                                                                +44 (0)20 7399 2788/ +44 7970 709912

 Investor Relations Analyst

 Teneo (Press)

 Charles Armitstead

                                                                            + 44 (0) 7703 330269
 Camilla Cunningham

                                                                              + 44 (0) 7464 982426

 

About Hikma

Hikma Pharmaceuticals PLC (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY)
(LEI:549300BNS685UXH4JI75) (rated BBB-/stable S&P and BBB-/stable Fitch)

 

Hikma helps put better health within reach every day for millions of people
around the world. For more than 40 years, we've been creating high-quality
medicines and making them accessible to the people who need them.
Headquartered in the UK, we are a global company with a local presence across
the United States (US), the Middle East and North Africa (MENA) and Europe,
and we use our unique insight and expertise to transform cutting-edge science
into innovative solutions that transform people's lives. We're committed to
our customers, and the people they care for, and by thinking creatively and
acting practically, we provide them with a broad range of branded and
non-branded generic medicines. Together, our 8,700 colleagues are helping to
shape a healthier world that enriches all our communities. We are a leading
licensing partner, and through our venture capital arm, are helping bring
innovative health technologies to people around the world. For more
information, please visit: www.hikma.com
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