REG - Hikma Pharmaceutical - Trading Statement

Hikma PharmaceuticalsAnnouncement

25/04/2024 07:00

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RNS Number : 9299L  Hikma Pharmaceuticals Plc  25 April 2024

Hikma has strong start to 2024, with continued momentum across all businesses.
Full year guidance reiterated

 

London, 25 April 2024 - Hikma Pharmaceuticals PLC (Hikma, Group), the
multinational pharmaceutical group, today provides an update on current
trading ahead of its Annual General Meeting.

 

Riad Mishlawi, Hikma's CEO, said:

 

"Hikma has had a strong start to 2024, with continued growth and momentum
across the Group. Our three businesses are performing well, underpinned by our
strong commercial and operational capabilities. We are launching new products
and expanding our manufacturing capacity, which will drive sustainable future
growth."

 

Group

The Group had a strong and encouraging start to the year, supported by all
three business segments.

 

We expect Group revenue to grow in the range of 4% to 6% and for core
operating profit to be in the range of $660 million to $700 million in 2024,
in line with prior guidance.

 

Injectables

 

Our global Injectables business has had a good start to the year. In the US,
the breadth of our portfolio, new launches, and our new high speed filling
lines are enabling us to capture new market opportunities. In Europe, we are
benefitting from good demand for our own products and we continue to make
progress in new markets. We are also seeing solid growth across our MENA
markets, supported by our biosimilar portfolio and recent launches.

 

We have launched three products year-to-date in the US and are expanding our
global manufacturing capacity, including strengthening our sterile
manufacturing capabilities in MENA.

 

We continue to expect 2024 Injectables revenue to grow in the range of 6% and
8% and for core operating margin to be between 36% and 37%.

 

Branded

 

Building on recent momentum, Branded has had a strong start to the year,
supported by a growing product portfolio and our commercial and operational
strength in the MENA region. We are seeing strong demand across our MENA
markets and increased sales both for our portfolio of oncology medicines and
for those medicines used to treat chronic illnesses.

 

In 2023 we became the second largest pharmaceutical company in MENA by
sales(1). We are investing in R&D to launch more complex and
first-to-market products. We are also gaining market share in key therapeutic
areas - we are the sixth largest supplier of new generation type II diabetes
products and second largest for multiple sclerosis therapies(2). We are
investing in enhancing our manufacturing capacity and capabilities,
strengthening our position as a local manufacturer and supplier of
high-quality medicines with industry-leading global expertise.

 

For 2024, we continue to expect Branded revenue to grow in the mid- to
high-single digits in constant currency, or low-single digits on a reported
basis.  Given the strong performance in the year to date, we now expect
slight growth in reported core operating profit.

 

 

Generics

 

Our Generics business is performing well. This reflects a robust performance
from our broad product portfolio and recent launches.  We are focusing on
building a differentiated portfolio and pipeline for this business, as well as
leveraging our state-of-the-art facility in Columbus, Ohio.

 

Last week, Hafrun Fridriksdottir was appointed as President of the Generics
business. Hafrun brings more than 25 years of strong leadership and deep
pharmaceutical industry experience to her new role, with a particular emphasis
on research and development, successful pipeline expansion and new product
introductions, making her well positioned to lead Hikma's Generics business in
its next phase of growth.

 

We continue to expect Generics revenue to grow in the range of 3% to 5% in
2024. We expect 2024 core operating margin to be in the mid-teens, reflecting
the increase in royalties payable on our authorised generic of sodium oxybate.

 

Final dividend

Subject to approval at today's Annual General Meeting, we will be paying a
final dividend of 47 cents per share. The final dividend brings the total
dividend for the full year 2023 to 72 cents per share, an increase of 29% on
2022. This equates to a payout ratio of around 32%, which is above our
historical range of 20% to 30%. We intend to progressively increase our
dividend, with a payout ratio in the range of 30% to 40%, reflecting the
Board's confidence in the long-term growth prospects for the Group and our
ongoing commitment to return cash to shareholders.

 

We will announce our interim results for the six months ended 30 June 2024 on
8 August 2024.

 

Further information

Hikma will hold a live Q&A conference call for sell-side analysts at
9:00am BST. A recording and transcript will be made available on the Company's
website.

 

To join via conference call please dial:

United Kingdom (Local): +44 20 3936 2999
United Kingdom (Toll-Free): +44 800 358 1035
Global Dial-In Numbers
(https://nam04.safelinks.protection.outlook.com/?url=https%3A%2F%2Furldefense.proofpoint.com%2Fv2%2Furl%3Fu%3Dhttps-3A__www.netroadshow.com_conferencing_global-2Dnumbers-3FconfId-3D63715%26d%3DDwMCaQ%26c%3DbZnDpUh0cTwskH9nIvyseq2tJ5dkOfcF56epRyP8Xxo%26r%3Dm4BT5mC7n_3qau9Ro8z6rYjN5rMd2WAzlM2ubzGxOw8%26m%3DGsICF5OYX6LRCuWyJiAOMliddqCgi0MxBhcP6mNPDNI82sKlpTk9pKAcMskd4I7o%26s%3De3g1EKVCQYNK2WYkFvupClzbprvYgwTAMPrQtgq-E-8%26e%3D&data=05%7C02%7CLKalisse%40Hikma.com%7Cc0704266596447591fe208dc57d9b908%7C178c1a723d3c40afbaa754615303bcdc%7C0%7C0%7C638481839958841911%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=NiVyoDoggRngvnx1S9rMV78PmKZ1g0Vc8KWtz0Nr8wg%3D&reserved=0)

Access Code: 565272

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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

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

 Senior Associate, Investor Relations

 Teneo (Press)

 Doug Campbell / Rob Yates

                                                                              +44 (0)7753 136628/ +44 (0)7715 375443

 

 

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
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 9,100 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)

©2024 Hikma Pharmaceuticals PLC. All rights reserved.

Forward-looking statements

Hikma cautions shareholders that any forward-looking statements or projections
made by Hikma, including those made in this announcement, are subject to risks
and uncertainties that may cause actual results to differ materially from
those projected. Such factors include, but are not limited to, those risk
factors described in the "Principal risks and uncertainties" section in
Hikma's latest Annual Report. Where included, such statements have been made
by or on behalf of Hikma in good faith based upon the knowledge and
information available to the Directors on the date of this announcement.
Accordingly, no assurance can be given that any particular expectation will be
met and Hikma's shareholders are cautioned not to place undue reliance on any
forward-looking statements. Other than in accordance with its legal or
regulatory obligations (including under the UK Market Abuse Regulation and the
UK Listing Rules and the Disclosure Guidance and Transparency Rules of the
Financial Conduct Authority), Hikma does not undertake to update any
forward-looking statements contained in this announcement to reflect any
changes in events, conditions or circumstances on which any such statement is
based or to correct any inaccuracies which may become apparent in any such
forward-looking statements.

 

 1  IQVIA MIDAS Pharma Index MAT Feb-2024. Retail + Hospital. Excluding Milks
and diagnostics. Excluding Lebanon.

2 IQVIA MIDAS Pharma Index MAT Feb-2024. Retail + Hospital. Excluding Milks
and diagnostics. Excluding Lebanon. Excluding F & G NFC1

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