Hikma Pharmaceuticals Plc Interim Management Statement (5214S)
November 08 2013 - 2:00AM
UK Regulatory
TIDMHIK
RNS Number : 5214S
Hikma Pharmaceuticals Plc
08 November 2013
Interim Management Statement
London, 8 November 2013 - Hikma Pharmaceuticals PLC (LSE: HIK)
(NASDAQ Dubai: HIK) (OTC: HKMPY), 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 2013 to
date, as required by the UK Listing Authority's Disclosure and
Transparency Rules.
We are pleased to maintain our guidance for 2013 of around 20%
Group revenue growth.
Injectables
Our global Injectables business continues to perform very well,
particularly in the US, where excellent growth is being driven by
strong demand across our growing product portfolio, pricing
improvements and a good performance from recently launched, more
differentiated products. We continue to deliver steady growth in
Europe and we are achieving stronger sales in key MENA markets. We
continue to expect our global Injectables business to achieve low
double-digit revenue growth for the full year and to deliver strong
profitability.
Branded
We are successfully executing our strategy of shifting our
product mix towards higher value products. This has driven a good
performance in key markets and has enabled us to achieve overall
Branded revenue growth of around 10% in the year to September, in
constant currency. Our focus on higher value products, combined
with our success in driving operational efficiencies, has improved
margins. For the full year, we now expect adjusted operating margin
of around 24%, up more than 50 basis points from last year.
We expect to achieve this significant improvement in margin,
while reducing our expectations of Branded revenue growth for the
full year to around 8% in constant currency, or around 5% on a
reported basis. This has resulted largely from our strategic
decision to significantly reduce low margin tender sales. Overall,
our improving product mix and more efficient operations have
strengthened the Branded business and will support an acceleration
of growth in 2014.
In September 2013, we took an excellent first step in our
strategy of expanding into sub-Saharan African, signing a 50:50
joint venture agreement with MIDROC Pharmaceuticals Limited, a
member of Sheikh Mohammed Hussein Al Amoudi's MIDROC Group, to
establish a presence in the Ethiopian pharmaceutical market. The
joint venture, called HikmaCure, will establish a local
manufacturing facility and will begin marketing and distributing
pharmaceutical products in Ethiopia.
Generics
Our Generics business is continuing to benefit from strong
doxycycline sales. We remain focused on the remediation of our
Eatontown facility and continue to gradually reintroduce products
to the market. We still expect to complete the work by the end of
this year and our expectations for non-recurring remediation costs
and other one-off items remains around $45 million for the full
year. Given the continued strength of doxycycline sales, we are
raising our full year guidance for this business to revenue of
around $260 million, with a reported operating margin above 40%.
Looking forward, we have limited visibility on the future
contribution of doxycycline but we expect competition to
increase.
Financing position
Our financing position remains very strong and will allow us to
make further strategic acquisitions and investments, as these
opportunities arise.
Said Darwazah, Chief Executive Officer of Hikma said:
"I am very pleased with the performance of the Group. Our
Injectables business is delivering an excellent performanceand we
are encouraged by the significant opportunities the US market
continues to offer. In our Branded business, we are delivering
meaningful margin improvements through the successful execution of
our strategy to focus on higher value products and through our
focus on operational efficiencies. Strong sales of doxycycline in
our Generics business continue to benefit the Group by enhancing
overall cash flows and strengthening our balance sheet.
We are confident that we will meet our guidance for 2013 of
around 20% revenue growth. We are performing well, we have
strengthened our businesses across the Group and we are very well
positioned to deliver a strong performance in 2014."
Hikma will announce its results for the year ending 31 December
2013 on 12 March 2014.
-- 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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