REG - Hikma Pharmaceutical - Trading Statement

Hikma PharmaceuticalsAnnouncement

28/04/2023 07:00

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RNS Number : 7691X  Hikma Pharmaceuticals Plc  28 April 2023

Good momentum across all businesses and updated Generics guidance

 

London, 28 April 2023 - Hikma Pharmaceuticals PLC (Hikma, Group), the
multinational pharmaceutical group, today provides an update on current
trading ahead of its Annual General Meeting.

 

Said Darwazah, Hikma's Executive Chairman and CEO, said:

 

"Hikma has had a good start to the year. Our Injectables and Branded
businesses continue to perform well reflecting our diversified portfolio of
products and manufacturing flexibility. We have also had a stronger than
expected start in our Generics business, leading us to upgrade our guidance
for the full year. The strength of our operations is enabling us to meet the
evolving needs of our customers across our markets and we look forward to
making continued progress in the year ahead."

 

Injectables

 

We are performing well in our global Injectables business. In the US, we
continue to benefit from our broad portfolio of 150 products. In Europe and
rest of the world, we are seeing good demand for our growing portfolio of
essential medicines. Our extensive and flexible manufacturing capabilities
across Europe are enabling us to respond to market shortages. In MENA, our
biosimilar products continue to drive growth.

 

Investments in new and expanded manufacturing capacity have enabled us to
build our reputation as a high-quality and reliable supplier, and we have
continued to consistently supply important medicines to patients. This year,
we are adding new high-speed filling lines in our Portugal and New Jersey
facilities to support our growing portfolio. We are also strengthening our
sterile manufacturing capabilities in MENA with the construction of new
Injectable plants in Algeria and Morocco.

 

We continue to expect Injectables revenue to grow between 7% and 9% and for
core operating margin to be between 36% and 37%. This reflects our broad
portfolio and flexible manufacturing capabilities across our geographies,
supported by new product launches.

 

Branded

 

Our Branded business is performing very well, supported by an increasingly
diversified portfolio of high-value products and further strong demand for
anti-infectives. Algeria continues to be a top performer reflecting good
demand for our growing oral oncology portfolio. In Saudi Arabia, improvements
in our commercial strategy are driving growth in both the private and
governmental sectors. We are focusing on strategic therapeutic areas such as
oncology, diabetes and central nervous system and we are leveraging our
growing local presence. In Egypt, while we continue to be impacted by currency
headwinds, we are pleased with the performance of our underlying business.

 

Our established presence in the region combined with our reputation as a
global pharmaceutical company with local expertise and strong commercial
capabilities continues to drive our growth. Across our markets, we have an
enhanced focus on R&D and are investing in higher value medicines to treat
chronic illnesses. We are introducing first-to-market and first-generic
products in our Tier 1 markets and are investing in sales and marketing to
support these efforts.

 

We continue to expect Branded revenue to grow in the mid to high single digits
in constant currency, driven by our expanding portfolio and focus on chronic
medications.

 

Generics

 

Our Generics business has had a strong and encouraging start to the year. The
strength of our commercial and operational capabilities as well as our
manufacturing flexibility are enabling us to ensure continuity of supply for
customers and patients impacted by increasing market disruptions. While the US
retail generics market remains competitive, we are benefiting from an
improving pricing environment, new business wins and a better-than-expected
performance across our differentiated portfolio. We are also making good
progress growing our contract manufacturing business, leveraging our Columbus
facility's state-of the-art manufacturing capabilities to secure additional
partnership opportunities. In January we launched our authorised generic of
sodium oxybate and we are pleased with its performance year to date, which is
in line with our expectations.

 

We continue to invest in building our commercial capabilities and developing
our pipeline while driving efficiencies to support our growth plans. These
investments will enable us to improve the resilience of this business as well
as build an increasingly differentiated and specialty portfolio.

 

Based on performance in the year to date, we are updating our full year
guidance for Generics. We now expect revenue growth close to 20%, compared
with our previous guidance of low double-digit growth. We continue to expect
core operating margin to be in the range of 16% to 18%.

 

Sudan

The safety and wellbeing of our colleagues in Sudan is a top priority and we
are doing what we can to support them. Our current guidance does not take into
account any potential impact this evolving situation could have on our
business. In 2022 sales from Sudan in our Branded and Injectables businesses
represented 2.5% of Group revenue.

 

Final dividend

Subject to approval at today's Annual General Meeting, we will be paying a
final dividend of 37 cents per share. The final dividend brings the total
dividend for the full year 2022 to 56 cents per share, an increase of 4% on
2021.

 

We will announce our interim results for the six months ended 30 June 2023 on
3 August 2023.

 

--  ENDS  --

Enquiries:

Hikma (Investors)

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

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

 Associate Director, Investor
 Relations
 Layan Kalisse                                             +44 (0)20 7399 2788/ +44 (0)7970 709912

 Senior Associate, Investor Relations

 Teneo (Press)

 Charles Armitstead

                                                           + 44 (0) 7703 330269

 

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 North America, 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 8,800 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 (http://www.hikma.com)

©2023 Hikma Pharmaceuticals PLC. All rights reserved.

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