Hikma Pharmaceuticals Plc Interim Management Statement (1466H)
May 15 2014 - 2:00AM
UK Regulatory
TIDMHIK
RNS Number : 1466H
Hikma Pharmaceuticals Plc
15 May 2014
Interim Management Statement
London, 15 May 2014 - Hikma Pharmaceuticals PLC (LSE: HIK)
(NASDAQ Dubai: HIK) (OTC: HKMPY), 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 2014 to
date, as required by the UK Listing Authority's Disclosure and
Transparency Rules.
Hikma has made a strong start to the year and we are pleased to
be reiterating our guidance for 2014 of around 5% Group revenue
growth, following an exceptionally strong year in 2013. We are also
very pleased that, through our ongoing commitment to the highest
standards of quality manufacturing, we successfully returned our
Eatontown facility to regulatory compliance earlier this year.
Branded
In the year to date, our Branded business has been performing in
line with last year. We have been delivering strong growth in two
of our largest markets, Saudi Arabia and Egypt, driven by new
product launches. In other markets, such as Algeria and Sudan, we
have seen a slower start to the year. We expect sales to accelerate
across the region, driven by new product launches and our focus on
improving the product mix. On a constant currency basis, we
continue to expect revenue growth of around 10% in 2014 and
adjusted operating margin in line with 2013.
Injectables
Our global Injectables business has continued to perform very
well in the year to date, particularly in the US, where we continue
to leverage our product portfolio to drive growth. The breadth of
our portfolio is enabling us to gain market share in certain
products and this is more than offsetting an increase in
competition in other products. We expect this strong performance to
continue and we reiterate our guidance of above 20% revenue growth
for the global Injectables business for the full year. Given our
strategic focus on higher value products, we are upgrading
expectations for the adjusted operating margin to around 35%.
Generics
The Generics business has also made a good start to the year. In
April, we received a close-out letter from the US Food and Drug
Administration ("US FDA") that lifted the warning letter in respect
of our Eatontown facility in New Jersey. This reflects the
investment we have made to complete the remediation work, upgrade
our manufacturing processes and strengthen our operations.
Revenue in the year to date has remained strong and we are
benefitting from the re-introduction of products to the market. We
continue to expect the Generics business to deliver revenue of
around $170 million in 2014, with an adjusted operating margin of
above 25%.
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 pleased that the Group has made a strong start to the
year. Our efforts to build a broad portfolio of injectable products
and continued focus on operational excellence are delivering
results. We are delivering strong revenue growth and upgrading our
guidance for the adjusted operating margin guidance for the
Injectables business this year.
Our diversified business in the MENA region has enabled us to
maintain sales in the year to-date and the outlook for the business
remains strong. Following our significant remediation efforts, we
are very pleased to have successfully resolved the issues with our
Eatontown facility. Our focus is now on rebuilding the portfolio
and pipeline for this business. Overall, we are pleased with our
performance in the year to date and are confident in the outlook
for the full year."
We will announce our interim results for the six months to 30
June 2014 on 20 August 2014.
-- ENDS --
Enquiries
Hikma Pharmaceuticals PLC
Susan Ringdal, VP Corporate Strategy and Investor Relations +44
(0)20 7399 2760/ +44 7776 477050
Lucinda Henderson, Deputy Head of Investor Relations +44 (0)20
7399 2765/ +44 7818 060211
FTI Consulting
Ben Atwell/ Matthew Cole/ Julia Phillips +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 2013, Hikma achieved revenues of $1,365 million and
profit attributable to shareholders of $212 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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