Hikma Pharmaceuticals Plc Interim Management Statement (2874W)
November 06 2014 - 2:01AM
UK Regulatory
TIDMHIK
RNS Number : 2874W
Hikma Pharmaceuticals Plc
06 November 2014
Interim Management Statement
London, 6 November 2014 - 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 2014 to
date, as required by the UK Listing Authority's Disclosure and
Transparency Rules.
We are pleased to raise our guidance for 2014 to Group revenue
growth of around 7%.
Injectables
Our global Injectables business is performing well, as we
continue to capture specific market opportunities in the US.
Competition is increasing in the US and we expect underlying sales
in the second half to be broadly in line with the first half of the
year. In MENA, we are seeing a good performance and are on track to
deliver slight growth for the full year, while European contract
manufacturing sales remain lower this year. Due to the continued
strength of specific market opportunities, we are raising our
guidance to around 25% revenue growth in 2014, with an adjusted
operating margin of above 35%.
Following our acquisition of Bedford Laboratories in July, we
also completed the acquisition of the Ben Venue manufacturing site
in Bedford, Ohio in September. This will significantly enhance our
R&D capabilities and enable us to expand future capacity for
injectables manufacturing.
As previously announced, in October 2014 we received a warning
letter from the US Food and Drug Administration ("FDA") related to
the inspection of our manufacturing facility in Portugal in March
2014. We will work with the FDA to fully resolve all outstanding
issues as quickly as possible.
Branded
Revenue in our Branded business is broadly in line with last
year. We are delivering good growth in markets such as Egypt and
the Gulf Cooperation Council ("GCC") countries, including Saudi
Arabia, driven by our strategic focus on newer, higher value
products. However, this is being offset by the ongoing
restructuring of our business in Algeria and political disruptions,
primarily in Iraq and Libya. Overall, we continue to expect the
Branded business to deliver low single digit revenue growth for the
full year, with an adjusted operating margin of around 21%.
Generics
The Generics business continues to perform very strongly this
year, reflecting specific market opportunities and the
re-introduction of products. We now expect the Generics business to
deliver revenue of around $215 million in 2014, with an adjusted
operating margin of around 55%.
On 30 September 2014, we received an approval for a New Drug
Application for colchicine 0.6mg capsules by the US FDA, under
Section 505(b)(2) of the US Federal Food Drug and Cosmetic Act. On
9 October, the US District Court for the District of Delaware
granted Takeda Pharmaceuticals U.S.A., Inc. ("Takeda") a temporary
restraining order while the court considered a motion by Takeda for
a preliminary injunction. On 5 November, the court denied Takeda's
motion but extended the temporary restraining order pending appeal.
Our guidance for 2014 does not reflect any contribution from
colchicine.
Financing position
Our financing position remains very strong and will enable us to
make further strategic acquisitions and investments, as
opportunities arise.
Said Darwazah, Chairman and Chief Executive Officer of Hikma
said:
"I am pleased with how our businesses are performing this year.
The continued strength of our Injectables business reflects the
benefit of our broad portfolio and our success in capturing market
opportunities. The Generics business continues to perform extremely
well this year and we are focused on developing our portfolio and
pipeline to support future growth. The Branded business is
delivering good growth in a number of important markets and we
believe the actions we are taking to restructure our business in
Algeria and our commitment to operating in markets impacted by
political disruptions, will strengthen our business for the future.
"
Hikma will announce its results for the year ending 31 December
2014 on 11 March 2015.
-- ENDS --
Enquiries
Hikma Pharmaceuticals PLC
Susan Ringdal, VP Corporate Strategy and Director of Investor
Relations +44 20 7399 2760/ +44 7776 477050
Lucinda Baker, Deputy Director of Investor Relations +44 20 7399
2765/ +44 7818 060211
FTI Consulting
Ben Atwell/ Matthew Cole/ Julia Phillips +44 20 3727 1000
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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