Hikma Pharmaceuticals Plc Interim Management Statement (8352E)
May 16 2013 - 2:00AM
UK Regulatory
TIDMHIK
RNS Number : 8352E
Hikma Pharmaceuticals Plc
15 May 2013
AGM and Interim Management Statement
London, 16 May 2013 - 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 2013 to date, as
required by the UK Listing Authority's Disclosure and Transparency
Rules.
The Group has made a strong start to the year. The Branded and
Injectables businesses are performing well and are on track to meet
our current full year guidance for 2013. Our Generics business is
continuing to benefit from a specific market opportunity for
doxycycline that is delivering revenue ahead of our original
expectations. As a result, we now expect Group revenue to grow by
around 13% in 2013, up from our previous guidance of around
10%.
Branded
Our Branded business is performing well. Across the region, we
continue to focus on launching new products, enhancing our sales
and marketing activities and driving operational efficiencies. This
is supporting good growth across our markets, particularly in
Algeria, Egypt and Saudi Arabia. We are also benefitting from the
salesforce and distribution restructuring that we undertook last
year in Jordan and Iraq, respectively.
In January 2013, we completed the acquisition of the Egyptian
Company for Pharmaceuticals and Chemical Industries ("EPCI"). We
have now fully integrated the EPCI sales and marketing team into
our Egyptian business and we have initiated plans to upgrade their
manufacturing facility.
On a constant currency basis, we continue to expect Branded
revenue growth to be around 11% in 2013, with a slight improvement
in adjusted operating margin. Given the prevailing weakness of some
of the North African currencies, and of the Egyptian Pound in
particular, we reiterate our guidance for reported Branded revenue
growth of around 9% for the full year with adjusted operating
margin in line with 2012.
Injectables
In April, we announced that the Board had completed a strategic
review of the global Injectables business and had determined that
the business should remain within the Hikma Group. The Board
believes that Hikma is uniquely positioned to create significant
further value from this business, by leveraging its high quality
manufacturing facilities, broad product portfolio, attractive
R&D pipeline and global distribution platform.
The Injectables business has made an excellent start to the
year. In particular, we are performing extremely well in the US,
driven by new product launches, price improvements and our
continued focus on operational efficiencies. Since the beginning of
the year we have also continued to actively develop our product
pipeline. We continue to expect our global Injectables business to
achieve low double-digit revenue growth for the full year.
Generics
Since the beginning of the year we have remained focused on
completing the remediation of our Eatontown facility. This work is
ongoing and has slowed the reintroduction of our products to the
market. As a result, we are expecting this business to incur
one-off remediation costs and inventory write-downs of around $25
million to $30 million, for the full year.
We expect the impact of the remediation and the associated costs
to be more than offset by a market opportunity for one of our
products, doxycycline, which has performed extremely well in the
year to date. With the expectation of exceptionally strong
doxycycline sales, primarily in the first half, we are raising our
full year guidance for this business to revenue of around $150
million and a reported operating margin in the low teens. We expect
to complete the remediation work in the second half of the year and
will, in parallel, continue to evaluate the strategic options for
this business.
Financing position
Our financing position remains strong and will allow us to make
further strategic investments during 2013, as these opportunities
arise.
Said Darwazah, Chief Executive Officer of Hikma said:
"We have made a very good start to 2013 across all of our
businesses and I am pleased to be able to raise our Group guidance
for the full year. In the MENA region, we are continuing to deliver
strong growth and our global Injectables business is performing
very well, benefitting from the investment we have made in the
quality of our manufacturing facilities and our product portfolio.
The significant contribution from doxycycline in the first half of
2013 is enabling us to cover the increased cost of remediation in
our Generics business, and we continue to focus on completing this
work and reintroducing products to the market. Overall, our
diversified business model is positioning the Group to deliver
another strong year in 2013."
We will announce our interim results for the six months to 30
June 2013 on 21 August 2013.
-- ENDS --
Enquiries
Hikma Pharmaceuticals PLC
Susan Ringdal, VP Corporate Strategy and Investor Relations +44
(0)20 7399 2760/ +44 7776 477050
Lucinda Henderson, Investor Relations Manager +44 (0)20 7399
2765/ +44 7818 060211
FTI Consulting
Ben Atwell/ Julia Phillips/ Matthew Cole +44 (0)20 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 2012, Hikma achieved revenues of $1,108.7 million and
profit attributable to shareholders of $100.3 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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