HIK Hikma Pharmaceuticals Plc

 

TIDMHIK 
 
RNS Number : 0618W 
Hikma Pharmaceuticals Plc 
12 November 2010 
 

 
 
 
                          Interim Management Statement 
 
London, 12 November 2010 - Hikma Pharmaceuticals PLC (LSE: HIK) (NASDAQ Dubai: 
HIK), the fast growing multinational pharmaceutical group, is today updating the 
market with its Interim Management Statement relating to the period from 1 July 
2010 to date as required by the UK Listing Authority's Disclosure and 
Transparency Rules. 
 
Hikma continues to benefit from the strength of its diversified business model 
and is performing well in the year to date.  We therefore reiterate our guidance 
for 2010 Group revenue growth in the low teens and for gross margin higher than 
in 2009. 
 
Branded 
We are delivering strong growth across many of our MENA markets in the second 
half, with a good performance in the Algerian market.  We reiterate our guidance 
of low double digit revenue growth for the Branded business for the full year. 
 
We continue to demonstrate our position as the partner of choice in the MENA 
region.  Since the beginning of the second half, we have entered into two new 
licensing agreements covering all of our markets in MENA, one with Piramal 
Healthcare for sevoflurane, an inhalation anaesthetic, and one with Siraeo for 
Infasurf , their leading respiratory product. 
 
Injectables 
Sales in our global Injectables business have been accelerating in the second 
half.  Sales growth has been particularly strong in our US Injectables business, 
driven by demand for our own products and for our contract manufacturing 
services.  Sales in Europe are stable, despite pricing pressure in our main 
European markets and the supplementary reimbursement scheme implemented in 
Germany in January 2010, and sales are picking up in the MENA region.  For the 
full year we expect the overall Injectables segment to perform well with a 
significant improvement in operating margin. 
 
On 29 October 2010, we announced the acquisition of Baxter Healthcare 
Corporation's US generic injectables business.  This acquisition will transform 
our Injectables business, doubling the size of our global Injectable sales, 
while at the same time doubling our total sales in the US market, and 
positioning Hikma, through its wholly-owned subsidiary West-Ward Pharmaceuticals 
('West-Ward'), as the second largest supplier by volume of injectable generics 
in the US market. 
 
Generics 
Our Generics business continues to perform very well.  Sales through September 
were particularly strong driven by a solid performance in our core business and 
enhanced by exceptional sales from certain products.  During the period, 
West-Ward resolved its dispute with Mutual Pharmaceutical Company, Inc. in 
respect of the supply of oral colchicine tablets to the parties' mutual 
satisfaction.  West-Ward has discontinued sales of oral colchicine until 
approval of its New Drug Application by the U.S. Food and Drug Administration. 
 
We continue to expect to deliver at least 20% sales growth in this business for 
the full year with an exceptionally high operating margin.  This reflects the 
strong performance in our underlying business, as well as the excellent 
opportunities we have captured so far this year. 
 
Financing position 
Our financing position remains very strong, allowing us to actively pursue 
acquisition opportunities across our business in addition to the announced 
purchase of Baxter Healthcare's generic injectables business. 
 
 
We remain confident that our strategy of organic growth supplemented by 
acquisitions and partnerships will continue to deliver excellent results for the 
Group. 
 
We plan to announce our preliminary results for the twelve months to 31 December 
2010 on 16 March 2011. 
 
 
                                  --  ENDS -- 
 
Enquiries: 
 
+------------------------------------------+---------------+ 
| Hikma Pharmaceuticals PLC                |               | 
+------------------------------------------+---------------+ 
| Susan Ringdal                            | +44 (0)20     | 
| Investor Relations Director              | 7399 2760     | 
|                                          |               | 
|                                          |               | 
|                                          |               | 
+------------------------------------------+---------------+ 
|                                          |               | 
+------------------------------------------+---------------+ 
Financial Dynamics 
+------------------------------------------+---------------+ 
| Ben Atwell/Julia Phillips/Jonathan       | +44 (0)20     | 
| Birt/Matthew Cole                        | 7831 3113     | 
+------------------------------------------+---------------+ 
|                                          |               | 
+------------------------------------------+---------------+ 
 
About Hikma 
Hikma Pharmaceuticals PLC is a fast growing multinational group focused on 
developing, manufacturing and marketing a broad range of both branded and 
non-branded generic and in-licensed products.  Hikma operates through three 
businesses: "Branded", "Injectables" and "Generics", based principally in the 
Middle East and North Africa ("MENA"), where it is a market leader, the United 
States and Europe.  In 2009, Hikma achieved revenues of $637 million and profit 
attributable to shareholders of $78 million. For news and other information, 
please visit www.hikma.com. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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