TIDMHIK
RNS Number : 3967L
Hikma Pharmaceuticals Plc
30 April 2020
London, 30 April 2020 - Hikma Pharmaceuticals PLC (Hikma,
Group), the multinational pharmaceutical group, announces an update
on trading in the year to date ahead of its Annual General Meeting
which will be held today, and provides an update on the actions it
is taking to deliver critically needed medicines to patients during
the COVID-19 pandemic.
Hikma's CEO, Siggi Olafsson said: "As the COVID-19 pandemic
continues to impact people and communities around the world, our
top priority is the health and safety of our employees and the
millions of patients across our markets who count on our
medicines.
As a company, we are leveraging our well-diversified product
portfolio and high-quality, flexible manufacturing facilities to
respond to the needs of healthcare providers and their patients. We
are prioritising the production and delivery of the medicines in
highest demand, while continuing to ensure we can supply our broad
range of other important medications. We have been proactively
managing our inventory and stock levels and working closely with
our supplier networks. I am especially proud of our employees'
commitment during these unprecedented times, enabling us to keep
delivering high-quality medicines to the people that need them the
most.
Hikma has made a strong start to the year despite the
challenging market conditions that have arisen as a result of
COVID-19. This is a complex situation which we are continually
monitoring, but we have confidence in the outlook for the Group and
we are pleased to reiterate our full year guidance for 2020."
Injectables
Our global Injectables business is performing well. In the US
and Europe, we are seeing an increase in demand across our
portfolio, driven in part by the COVID-19 outbreak. Our Injectables
business in MENA is also seeing strong demand, particularly for our
biosimilar products.
Hikma's Injectables product portfolio includes many of the
products most in need by hospitals during the current pandemic,
including anaesthetics, analgesics, sedatives, neuromuscular
blocking agents and anti-infectives. Our commercial and operational
teams are working closely with our customers and government
agencies to ensure we are able to maintain a consistent supply of
these products. We are leveraging the flexibility of our global
manufacturing facilities and have been able to enhance productivity
to meet the increased levels of demand.
We are pleased to announce that we have received US FDA approval
for the first product from our new high containment facility in
Portugal, which can now begin to supply the US market. We are on
track in terms of new product launches and are making significant
investments in our product pipeline.
Based on performance in the year to date, we are reiterating our
guidance for global Injectables revenue growth in the low to
mid-single digits for 2020, driven by demand for our broad product
portfolio across all our markets and new product launches. We
continue to expect core operating margin to be in the range of 35%
to 37%. While we are pleased with our performance in the year to
date, our guidance reflects the uncertain operating environment
brought about by the COVID-19 pandemic.
Generics
Our Generics business has also had a good start to the year,
building upon the strong performance of this segment in 2019. We
have seen good demand across our portfolio, particularly for our
nasal sprays, and a better than expected contribution from new
products, including the first-to-market generic launch of
everolimus tablets (a generic version of Zortress(R) ). We have
also seen some additional demand related to COVID-19.
We have made good progress in strengthening our R&D pipeline
since the beginning of the year. At the end of March, we
successfully invalidated six US patents as asserted by Amarin for
their Vascepa(R) capsules and continue to work to bring this
product to market. In addition, we continue to advance our nasal
spray portfolio, leveraging the strong technical capabilities at
our Columbus facility to progress our naloxone nasal spray
submission.
For the full year, we continue to expect Generics revenue in the
range of $700 million to $750 million. Our guidance assumes that we
will launch generic Advair Diskus(R) in the second half of the year
and we have included revenue of $20 million to $40 million from
generic Advair Diskus(R) in this range. We expect our core
operating margin for the Generics business to be between 16% and
18% or, including the launch of generic Advair Diskus(R) , around
20%.
Branded
Our Branded business is also performing well. We have seen good
demand across most of our markets, and particularly in our Tier 1
markets of Egypt and Saudi Arabia as well as in Algeria, where we
have seen a strong recovery reflecting a more benign market
environment. In some of our markets we have also seen an increase
in demand related to COVID-19.
While the pandemic has impacted our promotional activities, our
teams have responded quickly to the challenges posed by distancing
restrictions and have found new ways to reach health care providers
across the region, including detailing doctors online and hosting
virtual conferences. Some of our manufacturing facilities across
the region have experienced slight disruptions but our teams have
managed this well and production across our facilities is
normalising.
We remain confident in the outlook for the Branded business and
continue to expect revenue growth in constant currency to be in the
mid-single digits for the full year in 2020.
Strong balance sheet and final dividend
Subject to approval at today's Annual General Meeting, we will
be paying a final dividend of 30 cents per share (approximately 23
pence per share) bringing the total dividend for the full year to
44 cents per share (approximately 34 pence per share), an increase
of 16% on 2018. In the current environment, this demonstrates the
strength of our balance sheet and our confidence in our ability to
maintain strong cash generation and low leverage.
We will announce our interim results for the six months to 30
June 2020 on 7 August 2020.
-- ENDS --
Enquiries
Hikma Pharmaceuticals PLC
Susan Ringdal
EVP, Strategic Planning and Global +44 (0)20 7399 2760/ +44 7776
Affairs 477050
Guy Featherstone +44 (0)20 3892 4389/ +44 7795
Senior Investor Relations Manager 896738
Layan Kalisse +44 (0)20 7399 2788/ +44 7970
Investor Relations Analyst 709912
About Hikma
Hikma Pharmaceuticals PLC (LSE: HIK) (NASDAQ Dubai: HIK) (OTC:
HKMPY) (LEI:549300BNS685UXH4JI75) (rated Ba1/stable Moody's and
BB+/positive S&P)
Hikma helps put better health within reach every day for
millions of people in more than 50 countries around the world. For
more than 40 years, we've been creating high-quality medicines and
making them accessible to the people who need them. Headquartered
in the UK, we are 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 8,600 colleagues are helping to
shape a healthier world that enriches all our communities. We are a
leading licensing partner, 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
(c)2020 Hikma Pharmaceuticals PLC. All rights reserved.
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END
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