Hikma Pharmaceuticals Plc Trading Statement (7048G)
November 08 2018 - 2:01AM
UK Regulatory
TIDMHIK
RNS Number : 7048G
Hikma Pharmaceuticals Plc
08 November 2018
London, 8 November 2018 - Hikma Pharmaceuticals PLC (Hikma,
Group) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY) (rated Ba1
Moody's / BB+ S&P, both stable), the multinational
pharmaceutical group, is today updating the market on its current
trading.
Siggi Olafsson, Hikma's CEO, said: "I am very pleased with the
continued strong performance of the Group this year. Today we are
raising our full year guidance, as we are delivering revenue growth
and, more importantly, improving profitability ahead of our
expectations in both our Generics and Injectables businesses. In
the MENA, our Branded business is continuing to grow steadily and
we remain on track to meet our full year guidance. Across the
Group, we are benefiting from our large and well-diversified
portfolios, new product launches and our high-quality, flexible
manufacturing facilities.
Today we will host an Investor Day in London. Senior managers
from across the Group will provide updates on our business, our
markets, the growth opportunities we see for the future and our
plans to capture them. After nine months at Hikma, I am looking
forward to setting out my key strategic priorities. These include
focusing on strengthening the foundation of the Group through cost
reduction and driving efficiencies, building a pipeline that can
deliver sustainable growth and using partnerships and M&A to
fill pipeline gaps, enhance our position in key markets and enter
new product areas."
Injectables
Our global Injectables business is continuing to deliver strong
growth this year. We have been able to offset increased competition
in the US through the breadth and resilience of our growing
portfolio, good demand for recent launches and our ability to
leverage our scale and flexibility to respond to market shortages.
In Europe, we are benefiting from good demand for some recently
acquired products and in the MENA, we are delivering good growth in
Saudi Arabia and in biosimilar sales.
We are raising our 2018 guidance and now expect Injectables
revenue to be in the range of $825 million to $850 million and core
Injectables operating margin to be between 39% and 40%.
Generics
The Generics business continues to perform ahead of our
expectations this year. While the US retail market remains
challenging, with continued price erosion, the recent commercial
and operational improvements we have made to our business are
enabling us to deliver strong growth from our more differentiated
portfolio. We have also benefited from recent launches, including a
first-to-file Paragraph IV product with market exclusivity.
We have made good progress with our cost reduction initiatives,
including the consolidation of our manufacturing and distribution
facilities, and this is supporting the strong improvement in the
profitability of our Generics business this year. We now expect
full year Generics revenue to be in the range of $675 million to
$700 million and core Generics operating margin to be in the low
teens.
Branded
Our Branded business is continuing to deliver steady growth this
year. We are seeing good growth in the GCC, Egypt and Jordan
benefiting from new product launches, including recently licensed
products. We continue to expect Branded revenue growth for the full
year to be in the mid-single digits in constant currency.
Partnerships
Today we are announcing further progress in expanding our
respiratory pipeline. We have signed an agreement with Vectura to
develop and commercialise their Open, Inhale, Close (OIC) dry
product inhaler (DPI) platform, including generic versions of GSK's
five Ellipta(R) DPI products. The generic respiratory market is a
key area of focus for Hikma. This agreement leverages the
investment we have made and the experience we are gaining through
our generic Advair Diskus(R) development programme. By
strengthening and expanding our partnership with Vectura, we are
building a pipeline of complex respiratory products that will
enable us to deliver sustainable long-term growth. See separate
announcement for more details.
Investor Day
Today's Investor Day will commence at 13:30 UK time. All
presentations will be available on our website www.hikma.com and
will be webcast on: http://webcast.openbriefing.com/hikma_id18/.
The contents of the website do not form part of this trading update
announcement.
We will announce our results for the year ended 31 December 2018
on 13 March 2019.
-- ENDS --
Enquiries
Hikma Pharmaceuticals PLC
Susan Ringdal
EVP, Strategic Planning and Global +44 (0)20 7399 2760/ +44 7776
Affairs 477050
Lucinda Baker +44 (0)20 7399 2765/ +44 7818
Deputy Director of Investor Relations 060211
Virginia Spring +44 (0)20 3892 4389/ +44 7973
Senior Investor Relations Manager 679502
FTI Consulting
Ben Atwell/Brett Pollard +44 (0)20 3727 1000
About Hikma
Hikma helps put better health within reach every day for
millions of people in more than 50 countries around the world. For
40 years, we've been creating high-quality medicines and making
them accessible to the people who need them. We're a global company
with a local presence across the United States (US), the Middle
East and North Africa (MENA) and Europe, and we use our unique
insight and expertise to transform cutting-edge science into
innovative solutions that transform people's lives. We're committed
to our customers, and the people they care for, and by thinking
creatively and acting practically, we provide them with a broad
range of branded and non-branded generic medicines. Together, our
8,500 colleagues are helping to shape a healthier world that
enriches all our communities. We are a leading licensing partner in
the MENA region, and through our venture capital arm, are helping
bring innovative health technologies to people around the world.
For more information, please visit www.hikma.com.
LEI: 549300BNS685UXH4JI75
(c)2018 Hikma Pharmaceuticals PLC. All rights reserved.
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END
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