UK's Hikma Pharmaceuticals keeps 2026 outlook, confident in managing Mideast war costs (updated)
23/04/2026 07:58
Says Middle East demand robust, maintaining sufficient inventory Countries in the region asking Hikma to stockpile, exec says Flags some pressures related to shipping, energy, insurance Adds shares in paragraphs 1 and 7, analyst comment in 2, executive comments on the Middle East 4-6, context throughout, and graphic April 23 (Reuters) - Britain's Hikma Pharmaceuticals HIK.L kept its 2026 outlook unchanged on Thursday and said it was confident it could absorb higher shipping, energy and insurance costs stemming from the Iran war, supported by steady demand, sending its shares up nearly 6%. The update, which Peel Hunt analysts called "one step in the right direction," offered relief to investors concerned about Hikma's recovery and marked a boost for Chief Executive Said Darwazah. Darwazah stepped back from his role as executive chairman in February to focus on addressing challenges that have weighed on the drugmaker's share price. Hikma said on Thursday that it had seen some pressure on costs from the war without specifying how much. It said that demand in the key Middle East market was "robust," and that it continues to maintain sufficient inventory to mitigate potential supply chain disruptions. The company has been asked by governments in the Middle East to stockpile certain products, some of them for up to six months, said Mazen Darwazah, executive vice chairman and deputy CEO for Hikma's MENA business. "We are well positioned to supply the needs once they arise, and they are arising on a daily basis," he said on an investor call, without giving further details. Hikma shares were up 5% at 1146 GMT, but are still down by more than a quarter for the last 12 months. Founded in Jordan in 1978, the British-headquartered drugmaker sells its own-branded generics and licensed products in the Middle East and North Africa, which account for about a third of its core revenue and form its second-biggest market after North America. Its operations span over a dozen countries in the Middle East and North Africa, including Saudi Arabia, its largest there, Iraq, Lebanon, Jordan, Morocco, and the UAE. Hikma continues to expect group revenue growth of 2% to 4% for 2026 and operating profit of $720 million to $770 million. Persistent weakness in the company's injectables unit and delays at a key U.S. manufacturing site in Ohio had forced the drugmaker to scrap its medium‑term targets in February. Hikma is also closing down its small U.S. bulk manufacturing business catering to hospitals and clinics to focus on core operations, it said on Thursday. Drugmaker Hikma's regional revenues https://reut.rs/4vLHRcd (Reporting by Neeshita Beura and Pushkala Aripaka in Bengaluru; Editing by Rashmi Aich and Louise Heavens) ((Neeshita.Beura@thomsonreuters.com))