Hikma Pharmaceuticals Plc Interim Management Statement (1632Q)
November 02 2012 - 3:00AM
UK Regulatory
TIDMHIK
RNS Number : 1632Q
Hikma Pharmaceuticals Plc
02 November 2012
Interim Management Statement
London, 2 November 2012 - Hikma Pharmaceuticals PLC ("Hikma")
(LSE: HIK) (NASDAQ Dubai: HIK), the fast growing multinational
pharmaceutical group, is today updating the market on its current
trading and financial position. This constitutes its Interim
Management Statement relating to the period from 1 July 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 has been performing well, with particularly
strong performances in Algeria, Egypt and Libya driven by strong
demand for our products, new product launches and more focused
sales efforts. We continue to work on restructuring our business in
Iraq, where we changed our distributor in the beginning of the
year. In Sudan, where the business is being impacted by adverse
currency movements, we are seeing a gradual improvement in sales.
We continue to expect around 20% Branded revenue growth for the
full year. Excluding adverse currency movements, which are likely
to have a small negative impact on margins, we expect Branded gross
margin and adjusted operating margin to be broadly in line with
2011.
Injectables
Our global Injectables business has been performing ahead of our
expectations. This performance has been driven by new product
launches, increased tender sales, better portfolio management and
increased demand owing to continuing product shortages in the US
market. Based on this strong performance and a continued focus on
operating efficiencies, we now expect to exceed our previous
guidance, with revenue of around $460 million and adjusted EBIT
margin above 22%.
Generics
As anticipated, we saw an initial pick up in our Generics
business in the beginning of the second half, as we progressed with
our compliance work at our Eatontown facility. Following further
observations by the FDA, additional compliance work is required. To
complete this work most efficiently and expeditiously, we have
taken the decision to halt commercial production until mid-January
and will also be taking further actions to restructure the
business. We will continue to supply our customers to the best of
our ability through existing inventory and from our FDA approved
manufacturing facilities in the MENA region. For the full year, we
now expect this business to deliver revenue of around $105 million
and a loss of around $15 million, compared to our previous guidance
of break-even. This includes approximately $5 million of
non-recurring costs related to remediation and restructuring. We
are reviewing this business and are considering all strategic
options.
Financing position
Our financing position remains strong and will allow us to make
further strategic investments going forward.
Said Darwazah, Chief Executive Officer of Hikma said:
"Maintaining the highest quality standards across our global
business is essential for Hikma and the decision that we have taken
in our oral generics business in the US reflects this. We are
committed to bringing our Eatontown facility back into full
compliance as quickly as possible. More broadly, we are continuing
to benefit from the strength of our diversified business model -
our Branded business is performing well and our Injectables
business is exceeding our expectations."
--- ENDS ---
Enquiries
Hikma Pharmaceuticals PLC
Susan Ringdal, Investor Relations Director +44 (0)20 7399 2760
Lucinda Henderson, Investor Relations Manager +44 (0)20 7399 2765
FTI Consulting +44 (0)20 7831 3113
Ben Atwell /Julia Phillips/Jonathan 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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