Hikma Pharmaceuticals Plc Trading Statement (8025O)
November 10 2016 - 2:00AM
UK Regulatory
TIDMHIK
RNS Number : 8025O
Hikma Pharmaceuticals Plc
10 November 2016
Trading update
London, 10 November 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, is today updating the market on
its current trading.
Group
We are generating good revenue growth and expect Group revenue
for the full year to grow by approximately 35% to around $2 billion
in constant currency.
Injectables
In the year to date, our Injectables business has been
performing well, benefiting from the investments we have made
across our geographies to broaden our portfolio and strengthen our
manufacturing capabilities. In the US, good demand across a number
of products and new product launches has more than offset increased
competition for certain products. We remain on track to deliver
global Injectables revenue growth in the mid to high-single digits
in 2016. Due to a favourable product mix, we now expect core
operating margin to be around 39%, up from our previous guidance of
around 38%.
Generics
Since August, it has been more challenging than initially
expected to drive volume growth in certain products within our
portfolio. We expect this to continue through the remainder of 2016
and we now expect Generics revenue to be around $600 million for
the full year. We continue to expect full year core operating
profit to be in the range of $30 to $40 million, reflecting cost
savings, including the optimisation of R&D expenses.
In 2017, we expect our enlarged Generics business to deliver
revenue of around $800 million. We will be focused on improving the
mix of sales through market share gains of high value products,
portfolio rationalisation and pipeline execution. We have estimated
that certain new launches will contribute around 15% of Generics
revenue in 2017.
Branded
We have seen a steady improvement in Branded revenue during the
second half of the year in constant currency. Due to our focus on
higher quality sales and a more challenging environment in the GCC,
overall growth has been slightly lower than our expectations. For
the full year, on a reported basis, the Branded results will be
impacted by currency headwinds, which have become more challenging
following the recent devaluation of the Egyptian pound. On a
constant currency basis, we expect Branded revenue growth to be in
the mid-single digits and our focus on strategic products and
operating efficiencies is expected to deliver a significant
improvement in core operating margin.
Said Darwazah, Chairman and Chief Executive Officer of Hikma
said:
"Across the Group, we are improving the quality of sales and
focusing on profitability. Our global Injectables business is
delivering good growth and extremely strong margins. In MENA, our
focus on strategic products and greater operating efficiencies is
helping to absorb strong currency headwinds. In Generics, the
integration of the West-Ward Columbus acquisition is progressing
well and we are rapidly implementing cost savings. Although revenue
from West-Ward Columbus is ramping up more slowly than originally
anticipated, we remain highly confident in the future prospects of
the business.
More broadly, by continuing to leverage our operations in the
MENA region, expanding our portfolio of global Injectables products
and integrating the West-Ward Columbus business into our US
operations, we are increasingly well positioned to capture a range
of attractive future growth opportunities."
A conference call for analysts and investors will be held today
at 09:30 UK time. To join the call please dial: +44 (0) 203 139
4830; UK toll free: 0808 237 0030; US: +1 718 873 9077; US toll
free: +1 866 928 7517. The participant pin is: 30524494#. An audio
replay of the conference call will remain available for 30 days and
can be accessed by dialling: +44 (0) 203 426 2807; UK toll free:
0808 237 0026; US toll free: +1 866 535 8030. The pin number is:
679167#.
Hikma is hosting a Meet the Management Day in London on Tuesday,
15 November 2016. The event will be hosted by Said Darwazah, CEO
and Chairman, with members of management from Hikma's businesses in
the Middle East and North Africa, the United States and Europe. If
you are interested in attending or would like to join via webcast
please contact Ciara Martin on 020 3727 1838 or via email to
ciara.martin@fticonsulting.com to register your interest and for
further details.
-- ENDS --
Enquiries
Hikma Pharmaceuticals PLC
Susan Ringdal, VP Corporate Strategy +44 (0)20 7399 2760/
and Investor Relations +44 7776 477050
Lucinda Baker, Deputy Director +44 (0)20 7399 2765/
of Investor Relations +44 7818 060211
Zeena Murad, Investor Relations +44 (0)20 7399 2768/
Manager +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
revenue 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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