TIDMHIK
RNS Number : 9957X
Hikma Pharmaceuticals Plc
12 May 2016
AGM Trading Update
Hikma reiterates guidance for 2016
London, 12 May 2016 - Hikma Pharmaceuticals PLC ("Hikma" or "the
Group")(LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), (rated Ba1
Moody's / BB+ S&P, both stable), the fast growing multinational
pharmaceutical group, will hold its Annual General Meeting today
where the following statement will be made regarding its current
trading.
Hikma has made a good start to the year and we are pleased to
reiterate our guidance for 2016 for the Group overall and for each
of our business segments.
Group
We continue to expect full year Group revenue to be in the range
of $2.0 billion to $2.1 billion, including the contribution of ten
months of revenue from Roxane, with continuing momentum into
2017.
Injectables
Our Injectables business is performing well. We are making good
progress transferring the products acquired from Bedford
Laboratories to our manufacturing facilities in New Jersey, Germany
and Portugal and we have received three approvals for former
Bedford products so far this year, making a total of six Bedford
products approved since the acquisition.
We remain on track to deliver global Injectables revenue growth
in the mid to high-single digits in 2016, with competition on
marketed products being more than offset by new product launches
from our R&D, business development and Bedford pipelines. We
continue to expect core operating margin to return to a more
normalised level of around 36%, due primarily to a change in
product mix and higher R&D expenses.
Branded
Our Branded business is also continuing to perform well. Growth
in the year to date is being driven by higher sales in Algeria,
Egypt, Iraq and Jordan. We continue to expect full year 2016
Branded revenue to be in line with historical trends, on a constant
currency basis, driven by our focus on strategic products and the
strength of our sales and marketing teams. Improvement in the
Branded core operating margin is expected to be driven by revenue
growth and operational leverage.
Since reporting our preliminary results in March, negative
movements in exchange rates have persisted, particularly in the
Algerian Dinar, Egyptian Pound and Sudanese Pound. Assuming these
rates prevail, we would expect a further impact on Branded revenue
and operating profit. As in previous years, we expect Branded
revenue to be stronger in the second half, reflecting the usual
seasonality of this business.
Generics
The integration of the Roxane is proceeding swiftly and we are
very happy with the progress our teams have made. In April, we
received notification from the U.S. Food and Drug Administration
(FDA) that our abbreviated new drug application (ANDA) for
fluticasone propionate and salmeterol inhalation powder (the
generic version of GlaxoSmithKline's Advair Diskus(R)) has been
accepted for filing. The FDA has provided a GDUFA goal date of May
10, 2017. We are very pleased to have achieved this important
milestone in the development of generic Advair Diskus(R). Our team
has worked closely with the FDA to ensure the quality of the ANDA
submission and we are confident that we have developed a robust,
patient friendly, (AB-rated) substitutable generic product for
Advair Diskus(R).
As anticipated, revenue in our legacy Generics business has
declined compared to the same period in 2015, due to the
divestiture of certain legacy products associated with the
acquisition of Roxane and to the expected decline of certain market
opportunities.
We continue to expect 2016 revenue for the combined Generics to
be in the range of $640 million to $670 million, including ten
months of contribution from Roxane and taking into account the
divestiture of certain legacy products. We also continue to expect
the core Generics operating margin to be in the low
double-digits.
On a Group level, as previously guided, our statutory results in
2016 will be impacted by a number of exceptional, non-cash and
other charges including the amortisation of intangible assets, an
inventory step up, the revaluation of the fair value of future
royalty payments and one-off acquisition and integration costs. In
aggregate, these charges are currently estimated to impact net
income by around $115 million.
Said Darwazah, Chairman and Chief Executive Officer of Hikma
said:
"Hikma has made a good start to the year. We have performed well
in each of our businesses and we are pleased to be reiterating our
2016 guidance for the Group overall and for each of our business
segments.
Our focus this year is on integrating Roxane and delivering high
value, differentiated product launches. Moving forward, we expect
the benefits from the investments that we have made in recent years
- in R&D, M&A, co-development partnerships and licensing
agreements - to accelerate. We have an exciting pipeline across our
business segments that will drive accelerated and sustainable
future growth."
We will announce our interim results for the six months to 30
June 2015 on 24 August 2016.
-- ENDS --
Enquiries
Hikma Pharmaceuticals PLC
Susan Ringdal, VP Corporate Strategy and Investor Relations +44
(0)20 7399 2760/ +44 7776 477050
Zeena Murad, Investor Relations Manager +44 (0) 20 7399 2768/
+44 7771 665277
FTI Consulting
Ben Atwell/ Matthew Cole +44 (0)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: "Injectables", "Branded"
and "Generics", based principally in the United States, the Middle
East and North Africa (MENA) and Europe. In 2015, Hikma achieved
revenues of $1,440 million and profit attributable to shareholders
of $252 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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