REG - Hikma Pharmaceutical - Trading Statement

Hikma PharmaceuticalsAnnouncement

02/11/2023 07:00

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RNS Number : 0980S  Hikma Pharmaceuticals Plc  02 November 2023

Hikma continues strong momentum across the Group and upgrades guidance for
2023

 

London, 2 November 2023 - Hikma Pharmaceuticals PLC (Hikma, Group), the
multinational pharmaceutical group, today provides an update on current
trading.

 

Riad Mishlawi, Chief Executive Officer of Hikma, said:

 

"The good momentum during the first half has continued, enabling us to upgrade
full year guidance in two of our three businesses. Our Branded business is
performing exceptionally well on an underlying basis and our Generics business
has seen key products continuing to drive better-than-expected performance.
In Injectables, we are seeing solid growth, supported by a good performance in
MENA and Europe, and we have continued to invest across all our regions to
expand manufacturing capacity and build our pipeline. Overall, the Group is
making excellent progress and we are on track to deliver very strong earnings
growth for the full year."

 

Injectables

 

We continue to see solid growth in our global Injectables business. In North
America, while we have continued to see strong customer demand for our broad
product portfolio and a good contribution from new product launches in the
second half, growth has been lower than expected due to short-term supply and
capacity constraints. These constraints are easing as newly installed
high-speed manufacturing lines in both our Cherry Hill and Portugal facilities
are becoming fully operational and we are well-positioned to meet demand in
2024.

 

Our MENA business is performing very well, with launches driving growth and
offsetting the loss of sales in Sudan.  In Europe, we are delivering strong
growth in Germany and Italy and are gradually building share in Spain, France,
and the UK.

 

We are continuing to invest extensively across our Injectables business to
expand our portfolio and manufacturing capacity. We are making good progress
on our new facilities in Morocco and Algeria and are gradually advancing our
503B sterile compounding business in the US.

 

We now expect full year revenue growth and core operating margin to be at the
lower end of our guidance range of 7% to 9% and 36% to 37%, respectively.
This takes into consideration the closure of our Sudanese manufacturing
facility, investment in our compounding business and the short-term capacity
constraints in the US.

 

Branded

 

Our Branded business continues to see strong demand. Medicines used to treat
chronic illnesses are driving growth across our key MENA markets, offsetting
the combined headwinds of the devaluation of the Egyptian Pound and the
closure of our Sudanese manufacturing facility.  Leveraging our local
manufacturing presence and strong commercial teams, we continue to launch new
products, including first-to-market generics and innovative in-licenced
products.  Our teams are focused on driving efficiencies at our facilities
across the region, and this, combined with a favourable product mix, is
leading to improved profitability.

 

We continue to expect Branded revenue to grow in the mid-to-high single digits
in constant currency. On a reported basis, assuming no further adverse
currency movements, we continue to expect Branded revenue to be in line with
2022, offsetting headwinds resulting from the devaluation of the Egyptian
Pound and the closure of our Sudan operations. Due to our strong performance
and focus on efficiencies, we now expect core operating margin to expand to
around 23% for the full year.

 

Generics

 

Our Generics business continues to have an excellent year, as we benefit from
favourable market dynamics across our base business and a stronger than
expected revenue contribution from our authorised generic of sodium oxybate.

 

We are pleased with the efforts we are making to utilise spare capacity at our
Columbus plant for contract manufacturing and are making good progress with
our specialty products.

 

We now expect 2023 revenue in the range of $920 million to $940 million and
core operating margin of around 20%, up from previous guidance of close to 30%
growth and margins of 18% to 20%.

 

--  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-/positive Fitch)

 

Hikma helps put better health within reach every day for millions of people
around the world. For more than 45 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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