Interim Management Statement (5243D)
May 17 2012 - 2:00AM
UK Regulatory
TIDMHIK
RNS Number : 5243D
Hikma Pharmaceuticals Plc
17 May 2012
AGM and Interim Management Statement
London, 17 May 2012 - Hikma Pharmaceuticals PLC (LSE: HIK)
(NASDAQ Dubai: HIK), the fast growing multinational pharmaceutical
group, will hold its Annual General Meeting today where the
following statement will be made regarding its current trading and
financial position. This constitutes its Interim Management
Statement relating to the period from 1 January 2012 to date, as
required by the UK Listing Authority's Disclosure and Transparency
Rules.
We are pleased to maintain our guidance for 2012 of around 20%
Group revenue growth.
Branded
Our Branded business grew by 28% in the first four months of the
year, with 12% organic revenue growth. Two of our largest markets,
Algeria and Egypt, are delivering excellent growth, benefiting from
increased local production and greater manufacturing capacity,
respectively. We have also seen a good performance from our
businesses in Saudi Arabia, Tunisia and Libya, as well as higher
tender sales. These strong performances are partially offsetting
the impact of a slower than expected start to the year in Sudan and
the effect of the changes we have made in reorganising our
operations in Iraq.
We reiterate our guidance of around 20% Branded revenue growth
for the full year and expect around 45% of revenue to be delivered
in the first half. We continue to expect gross margin and adjusted
operating margin in 2012 to be broadly in line with 2011,
reflecting the increases that we anticipated in wages and R&D
expense and the impact of consolidating Promopharm, our recent
acquisition in Morocco. The benefit of operating leverage will mean
margins are stronger in the second half of the year.
Injectables
Our global Injectables business continues to perform extremely
well this year. This is being driven by strong demand for our
products in the US and the benefit of significant operational
improvements and increased capacity since we acquired the
Multi-Source Injectables business last year. We are seeing
double-digit revenue growth in MENA and single-digit revenue growth
in Europe. Overall, we expect that the global Injectables business
will achieve revenue growth of more than 35% in 2012, with an
adjusted operating margin in the high teens.
Our strategic priority for the Injectables business and across
the Group this year is to strengthen our product portfolio, with a
particular focus on more differentiated products. In May, we
purchased an ANDA for an injectable product, sodium ferrous
gluconate, from GeneraMedix Pharmaceuticals for a cash
consideration of $16 million. This is the only US approved generic
of this product and is a product we had previously been producing
for GeneraMedix under a contract manufacturing arrangement.
Acquisitions of this nature will contribute to the continued growth
of our Injectables business.
Generics
As highlighted in March, pricing pressure continues to impact
our Generics business. Revenue has been further impacted by the
actions we have been taking in response to the US FDA warning
letter we received in February for our Eatontown facility. We are
enhancing our processes to address the FDA's observations. This has
caused a slowdown in sales and we expect a stronger second half.
For the full year, we expect sales of between $130 million and $135
million. The slower start in 2012 will impact profitability in the
first half and we now expect the full year adjusted EBIT margin to
be in the mid single-digits.
Tax
We continue to expect the effective tax rate for the Group to be
around 20% in 2012. Due to the timing of sales, the rate is
expected to be higher in the first half of the year.
Financing position
Our financing position remains strong and will allow us to make
further strategic investments during 2012.
Said Darwazah, Chief Executive Officer of Hikma said:
"We are making good progress towards delivering our targets for
this year and surpassing the important milestone of $1 billion in
revenue. In the MENA region, where the Arab Spring has created a
challenging environment, we are delivering strong growth and
continue to expand our share of these fast growing markets. We are
seeing very strong growth in our Injectables business, where we are
benefiting from our long track record of investing in quality,
capacity and new products. This is compensating for the slowdown in
the Generics business in 2012. Overall, the strength of our
diversified business model will once again enable us to grow Group
revenue by around 20% this year. "
We will announce our interim results for the six months to 30
June 2012 on 16 August 2012.
-- ENDS --
Enquiries:
Hikma Pharmaceuticals PLC
Susan Ringdal
Vice President, Corporate Strategy +44 (0)20 7399
and Investor Relations 2760
FTI Consulting Ben Atwell/Julia Phillips/Jonathan +44 (0)20 7831 3113
Birt/Matthew Cole
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 2011, Hikma achieved revenues of $918.0 million and
profit attributable to shareholders of $80.1 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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