REG - Hikma Pharmaceutical - Trading Statement

Hikma PharmaceuticalsAnnouncement

07/11/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241107:nRSG2338La&default-theme=true

RNS Number : 2338L  Hikma Pharmaceuticals Plc  07 November 2024

Hikma continues strong strategic execution and reiterates guidance

 

London, 7 November 2024 - Hikma Pharmaceuticals PLC (Hikma, Group), the
multinational pharmaceutical group, today provides an update on current
trading.

 

Riad Mishlawi, Hikma's CEO, said:

 

"I am pleased with our progress this year and we remain on track to deliver
another strong performance in 2024, in line with our current guidance.  All
three businesses are contributing, with new launches across our markets and
investment in our infrastructure giving us confidence for the future.  We
have made excellent strategic progress in the period, having closed the Xellia
acquisition and signed an important contract manufacturing agreement for our
Generics business."

 

Group

 

The Group is performing well and we continue to expect Group revenue to grow
in the range of 6% to 8% and for core operating profit to be in the range of
$700 million to $730 million in 2024, in line with our previously upgraded
guidance.

 

Injectables

 

In our global Injectables business, growth has accelerated in the second half
of the year, driven by the previously expected second half weighting of
contract manufacturing in Europe. We are also benefitting from sustained good
demand for our own products in Europe, including in our new markets. Our MENA
Injectables business is performing well, supported by new launches.

 

In North America, there is good demand for our broad portfolio, and we have
launched ten products in the year to date, with more expected towards the end
of the year.  We closed the Xellia acquisition in September and expect a
revenue contribution of around $20 million this year, in line with previously
set-out expectations.  We are now working on integrating the business and
upgrading the Bedford, Ohio manufacturing facility.

 

Excluding the Xellia acquisition, 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

 

Our Branded business is performing well. We are benefitting from our position
as a leading supplier of medicines across the region, our deep understanding
of local healthcare needs, and our extensive local footprint. This is
translating into strong demand across our portfolio, including for our
oncology, diabetes and cardiovascular products.

 

As noted at the half-year, operating costs will be second half weighted as we
invest in our pipeline, focusing on first-to-market and first-generic
opportunities, and in our commercial activities to support our portfolio.

 

We are reiterating our guidance for Branded revenue growth in the high-single
digits in constant currency, or 6% to 8% on a reported basis, and for reported
core operating margin to be around 25%.

Generics

 

Our Generics business continues to deliver an excellent performance. This
reflects our increasingly broad and differentiated portfolio, with a strong
contribution from our nasal and inhalation products as well as recent
launches. This portfolio breadth is helping to offset the expected increase in
competition on certain products.

 

We remain focused on strengthening our portfolio and pipeline for this
business and are on track with R&D investment, which has increased
compared with the first half of the year.

 

We have made strong progress in building a meaningful contract manufacturing
(CMO) business and are pleased to announce the signing of a significant new
long-term contract with a global pharmaceutical company. Subject to FDA
approvals, we expect to begin commercial production for our partner in 2027.
Our CMO business is key to our Generics strategy, supporting stronger revenue
growth and profitability, while improving the utilization of our Columbus,
Ohio facility.

 

We continue to expect Generics revenue to grow in the range of 5% to 7% in
2024, and core operating margin to be between 16% and 17%.

Further information

Hikma will hold a live Q&A conference call for sell-side analysts at
1:00pm GMT. 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

United States (Toll-Free): +1 855 9796 654

International: +44 20 3936 2999

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-3D67942%26d%3DDwMFaQ%26c%3DbZnDpUh0cTwskH9nIvyseq2tJ5dkOfcF56epRyP8Xxo%26r%3D-ez93etbg_mYALTIk80-LeSiBK2c108TWoFgseu2Zxlo93lWK05OsNNYOjhJyLj_%26m%3DL5f7cwExZMl3cWJ4j1hsgeez52ux0RIjKf5wS_2b7etXAYUSoUY59yIhUiBLk4rg%26s%3DSlJgZhJEjSYXxteOJbatqNZyD34EYe2OIoEHQ2we_xI%26e%3D&data=05%7C02%7CLKalisse%40Hikma.com%7Cd145d5ed1e8b4583d54908dced2c8aad%7C178c1a723d3c40afbaa754615303bcdc%7C0%7C0%7C638646022833653674%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=ILLggwGpFOTcLBQtL7ionz6lIZh5OktJzO2h5JyNwfg%3D&reserved=0)

Access Code: 907902

--  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

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

 Senior Associate, Investor Relations

 Teneo (Press)

 Rob Yates

                                              +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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTDZMGMVVRGDZM