UK's Hikma Pharmaceuticals H1 revenue, profit rise on strong branded drugs growth
UK's Hikma Pharmaceuticals H1 revenue, profit rise on strong branded drugs growth
Overview
UK generic drugmaker's H1 revenue rose 4% yr/yr, led by strong Branded segment growth
Core operating profit for H1 increased 9% yr/yr
Company has repurchased $227 mln of shares under $250 mln buyback program
Outlook
Hikma sees 2026 group revenue growth of 2% to 4% in constant currency
Company expects 2026 group core operating profit of $720 mln to $770 mln
Branded revenue now expected to grow at top end of 6% to 8% range
Result Drivers
BRANDED SEGMENT - Strong growth driven by demand for chronic illness medications, new launches, and ability to meet additional government demand in MENA
INJECTABLES SEGMENT - Flat revenue as US decline offset by growth in Europe and MENA; US impacted by transition from Vanco Ready to Tyzavan and supply disruptions
HIKMA RX SEGMENT - Margin improvement supported by higher contract manufacturing revenue and renegotiated terms on sodium oxybate
Company press release: ID:nRSF4836Pa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | Beat | $1.73 bln | $1.71 bln (1 Analyst) |
H1 Adjusted Operating Profit |
| $405 mln |
|
H1 Operating Profit |
| $336 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy"
Wall Street's median 12-month price target for Hikma Pharmaceuticals PLC is GBp1,800.00, about 14.6% above its August 5 closing price of GBp1,571.00
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago
Reuters Recommended Reads
Aug 5 - Sandoz gains on strong biosimilar growth, touts 'golden decade'
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Aug 5 - Lilly beats estimates on resilient demand for injectable GLP-1 drugs, widens gap with Novo
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)