REG - Hikma Pharmaceutical - Trading Statement

Hikma PharmaceuticalsAnnouncement

24/04/2025 07:02

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250424:nRSX9404Fa&default-theme=true

RNS Number : 9404F  Hikma Pharmaceuticals Plc  24 April 2025

Hikma reiterates full year guidance following good start to the year

 

London, 24 April 2025 - 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:

 

"We are pleased to reiterate our Group guidance for 2025. As a global company
with strong local expertise and footprint, we are leveraging our manufacturing
proficiency and advanced technologies to meet the needs of our customers and
patients across our markets. Looking ahead, and recognising the broader
geo-political challenges, we are well-positioned. Our step up in R&D
investment, alongside local manufacturing enhancements, and strategic
partnerships will continue to strengthen our portfolio and pipeline and ensure
sustained success."

 

Injectables

 

Our global Injectables business is delivering a solid revenue performance,
driven by each of our three geographies. We are seeing strong demand for our
products across our European and MENA markets, where we continue to launch new
products. In North America we are benefitting from good demand for the
recently launched liraglutide injection and the contribution from the newly
acquired Xellia portfolio. This is helping to offset increased competition
across some of our existing higher margin products.

 

We expect momentum to improve in the second half driven by new product
launches and contract manufacturing. We are making excellent progress in the
enhancements to our Bedford, Ohio facility, which will significantly increase
our US-based injectables manufacturing capacity.

 

We continue to expect 2025 Injectables revenue to grow in the range of 7% to
9%. Phasing and mix of sales will impact margins in the first half but we
continue to expect full year core operating margin to be in the mid-30s.

 

Branded

 

Our Branded business is performing well. We continue to make good progress in
building our diversified portfolio of products used to treat chronic
illnesses, with a focus on oncology and lifestyle diseases, supported by our
global expertise and strong local market position.

 

Our leading presence in the MENA region, combined with the breadth of our
reach and strong commercial capabilities positions us as a partner of choice.
We recently signed an exclusive licensing agreement with pharmaand GmbH, a
global pharmaceutical business based in Vienna, to commercialise rucaparib, an
innovative small-molecule oral oncology therapy, across the MENA region. This
is in line with our strategy to be a leading provider of oncology medicines in
the region.

 

We continue to expect 2025 Branded revenue to grow in the range of 6% to 7% in
constant currency, with core EBIT margin close to 25%.

 

Generics

 

In our Generics business we are seeing solid demand across our differentiated
portfolio, particularly for our nasal and inhalation products. By focusing on
reliability of supply, high service levels and leveraging our US manufacturing
facility, we are successfully securing longer-term customer awards.

 

We continue to strengthen our R&D capabilities, including building a team
in our new Zagreb, Croatia R&D centre, and are progressing with key
development projects that will help strengthen our portfolio and pipeline for
the medium to long-term. We are progressing well preparing our Columbus
facility to accommodate our recently announced contract manufacturing
partnership, and we are seeing increasing demand for our high-quality US-based
manufacturing services.

 

We continue to expect Generics revenue to be broadly flat in 2025 with core
operating margin of around 16%.

 

International trade policies

We are confident that our significant and expanding US manufacturing
footprint, which supplies the majority of our US sales, combined with our
focus on quality and reliability of supply, position us well and underpin our
resilience in the current environment.  We do import some finished products
into the US as well as capital equipment, and we have a diversified global
supply chain for our raw and packaging materials, including active
pharmaceutical ingredients (API).

 

Full year outlook unchanged

We continue to expect Group revenue to grow in the range of 4% to 6% and for
core operating profit to be in the range of $730 million to $770 million in
2025. Group core operating profit growth, which is around 4% at the midpoint
of guidance, will be weighted to the second half.  We are monitoring the
evolving tariff backdrop and will look to remain agile in responding to both
opportunities and impacts where possible, but have not reflected an impact
from tariffs in our full year outlook.

 

Final dividend

Subject to approval at today's Annual General Meeting, we will be paying a
final dividend of 48 cents per share. The final dividend brings the total
dividend for the full year 2024 to 80 cents per share, an increase of 11% on
2023.

 

We will announce our interim results for the six months ended 30 June 2025 on
7 August 2025.

 

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.com%2Fv3%2F__https%3A%2F%2Fwww.netroadshow.com%2Fconferencing%2Fglobal-numbers%3FconfId%3D80513__%3B!!GEb1pAs!CC7yE8cLp0CUjSFYy9gk0Xv8T0XRiB9Bd3MeGQxwMRfdsSyh-dbTrPAJB8_wWO6ZmgPUQm6Rvf6DuK645SrHhTRUfJTo5bIr1T_-5qM%24&data=05%7C02%7CLKalisse%40Hikma.com%7C9129b87b3d12429f3a5f08dd70fcbc02%7C178c1a723d3c40afbaa754615303bcdc%7C0%7C0%7C638790952997241137%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=dBJJEWLgzgcmt4P9BRhMydsxMGfQA8mG172DRMpbivo%3D&reserved=0)

Access Code: 558001

--  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

 FTI Consulting (Media)

 Ciara Martin

                                                                              +44 (0)7779 775979

 

 

 

 

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 9,500 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)

©2025 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  TSTDZGZDNFLGKZM