Interim Management Statement (4869R)
November 04 2011 - 3:00AM
UK Regulatory
TIDMHIK
RNS Number : 4869R
Hikma Pharmaceuticals Plc
04 November 2011
Hikma remains on track to deliver full year Group revenue and
net income in line with guidance
London, 4 November 2011 - 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 2011 to date, as
required by the UK Listing Authority's Disclosure and Transparency
Rules.
We are pleased to reiterate our guidance for 2011 of over 20%
Group revenue growth and organic Group revenue growth of around 7%.
We remain on track to deliver reported net income in the range of
$85 million to $90 million, excluding the consolidation of the
recent acquisition of Promopharm.
We have seen stronger Branded sales growth in the second half as
trading conditions in previously disrupted MENA markets continue to
improve. Whilst sales in our Generics business are being impacted
by ongoing pricing pressure, this is being offset by an excellent
performance in our global Injectables business which is continuing
to deliver very strong growth in the second half. We now expect
organic Group gross margin to be around 46%.
In a challenging year, we are also making excellent progress in
delivering our long-term strategic plans. We have established a
significant local manufacturing presence in Morocco through our
recent acquisition and we have expanded our facilities in Egypt and
Tunisia. In Algeria, we inaugurated our new penicillin plant and
will begin local production of anti-infectives for the Algerian
market in 2012. We have also expanded our global Injectables
operations through the acquisition of the Multi Source Injectables
("MSI") business in the US and through the inauguration of our new
injectables facility in Portugal. We have made strategic
investments in India and China, enabling us to expand our API
sourcing and R&D capabilities.
Branded
Our Branded business in MENA is performing well, with revenues
to the end of September up around 9%. As expected, sales in Tunisia
and Egypt are continuing to improve. In Libya, we have recently
re-entered the market on a commercial basis and across our other
MENA markets we are performing in line with our expectations. Given
the overall performance we have achieved through September and the
strong demand we are seeing for our products in the market, we
reiterate our guidance of around 7% revenue growth and around 23%
operating margin for the Branded business for the full year,
excluding the consolidation of the recent acquisition.
On 3 October 2011, we announced the acquisition of a 63.9% stake
in Promopharm. Through this strategic transaction we have entered
the Moroccan market and see strong growth potential for
Promopharm's existing business and significant opportunities to
launch Hikma's leading products in Morocco. As previously
announced, we are making a mandatory tender offer for the remaining
36.1% of Promopharm's shares and we anticipate completing this
process by the end of the year.
Generics
Our Generics business continues to deliver double-digit revenue
growth, excluding the exceptional colchicine sales in 2010.
According to IMS Health, demand for our products is up 13% in terms
of prescriptions written and our market share has increased from
1.7% to 1.9%(1) . For the full year, we now expect sales to be
around $155 million and operating margin in the low double-digits
mainly due to industry-wide pricing pressure, which we do not
expect to be fully offset by higher volumes.
________________
(1) IMS Health, YTD Aug 2011.
Injectables
Our global Injectables business is performing extremely well
across all regions. This reflects strong demand for our existing
products, new product launches and growth in our contract
manufacturing services. For the full year, we expect the organic
Injectables business to deliver strong double-digit sales growth,
with a significant improvement in operating margin.
In Portugal, we inaugurated our new Injectables facility, which
has begun producing lyophilised products for the European and MENA
markets and which has expanded our liquids capacity for the US
market. Our R&D team is currently working on bringing several
new lyophilised products to all of our markets. In addition, we
have identified a number of opportunities to develop our overall
Injectables product portfolio and now plan to increase our
investment in Injectables R&D over the coming two years.
We are making good progress with the integration of the MSI
business, implementing restructuring plans and achieving cost
savings. As part of the MSI integration and restructuring plan, we
have completed the first phase of facility upgrades and capacity
enhancements at our Cherry Hill facility. We are well on track to
deliver our full year revenue guidance for MSI of $100-$105 million
and continue to expect the business to break even in the second
half. For 2012, we continue to expect MSI to contribute revenues of
at least $180 million and EBITDA margin of at least 10%.
Financing position
In September 2011, we obtained new debt facilities of $180
million, allowing us to fund the acquisition of Promopharm and
other capital expenditure requirements. Overall, the Group remains
in a good financing position.
Said Darwazah, Chief Executive Officer of Hikma said:
"The excellent performance of our global Injectables business,
our rapid progress in integrating the MSI business in the US and
the resilience of our operations in MENA demonstrate the strength
of our diversified business model. We are pleased to reiterate our
full year guidance for revenue and net income in 2011 and we remain
confident that our strategy of organic growth supplemented by
acquisitions and strategic alliances will continue to deliver
excellent results for the Group."
We plan to announce our preliminary results for the twelve
months to 31 December 2011 on 14 March 2012.
-- ENDS -
Enquiries:
Hikma Pharmaceuticals PLC
Susan Ringdal +44 (0)207 399
Investor Relations Director 2760
FTI Consulting
Ben Atwell/Julia Phillips/Jonathan Birt/Matthew +44 (0)20 7831
Cole 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 2010, Hikma achieved revenues of $730.9 million and
profit attributable to shareholders of $98.8 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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