TIDMHIK
RNS Number : 7871J
Hikma Pharmaceuticals Plc
29 April 2022
Continued strategic progress and updated full year guidance
following Custopharm acquisition
London, 29 April 2022 - Hikma Pharmaceuticals PLC (Hikma, Group)
, the multinational pharmaceutical group, today provides an update
on current trading.
Siggi Olafsson, Hikma's CEO, said:
"Hikma continues to make strategic progress, positioning the
business for future growth through new product launches, continued
investment in R&D and new strategic partnerships and
acquisition, which are all driving our ability to put better health
within reach, every day.
Our acquisition of Custopharm, which closed last week, enhances
our R&D capabilities and pipeline while further expanding our
portfolio of differentiated injectable medicines. More broadly
across the Group, we are seeing the benefits of our large and
diverse portfolio which is helping us to offset increased
competition in the Generics business, and underpins our confidence
for continued growth this year."
Injectables
Our global Injectables business is performing well. In the US,
Hikma is a top two supplier of generic injectable medicines by
volume(1) with a broad portfolio of close to 130 medicines. The
return of elective surgeries continues and our diverse portfolio
provides us with the flexibility to respond to the specific needs
of our customers and address shortage issues. In Europe, we are
seeing a good performance from our own products which is partially
offsetting the anticipated reduction in contract manufacturing. In
MENA, we are seeing good demand across our markets, with
performance in line with expectations.
Our Injectables business continues to make good strategic
progress. In the US, we are on track with new launches, and are
pleased to add Custopharm's 13 approved products to our extensive
US portfolio. In MENA, we have enhanced our biosimilar offering
through our licencing agreement with Celltrion for Remsima(R) SC,
the first subcutaneous formulation of infliximab.
We are updating our guidance to include a contribution from
Custopharm. We now expect full year global Injectables revenue to
grow in the mid to high-single digits, compared with our previous
guidance of low to mid-single digits. We expect core operating
margin to be in the range of 36% to 37%, up from 35% to 37%.
Generics
In our Generics business, the year has started slowly,
reflecting increased competition and the challenging pricing
environment. These headwinds are being partially offset by
opportunities we are generating through our strong customer
relationships, broad portfolio and flexible local operations.
We continue to expect full year Generics revenue growth in the
range 8% to 10% and core operating margin in the range of 24% to
25%, assuming a mid-year launch of sodium oxybate. We expect
Generics revenue will be weighted towards the second half of the
year.
Branded
Our Branded business is performing well, as we maintain our
focus on key therapeutic areas and chronic medications. Our tier
one markets, Algeria and Egypt are performing strongly on a
constant currency basis. Saudi Arabia has had a positive start to
the year in the retail business, while the timing of government
tenders will result in an overall weighting to the second half of
the year.
We continue to expect full year 2022 Branded revenue to be in
line with 2021. Excluding the $31 million impact from
hyperinflation in 2021, we expect Branded revenue to grow in the
mid-single digits.
Final dividend and buyback
At our Annual General Meeting on 25 April 2022, our 2021 final
dividend of 36 cents per share was approved and has been paid to
shareholders. The final dividend brings the total dividend for the
full year 2021 to 54 cents per share, an increase of 8% on
2020.
We have been executing our share buyback programme, as announced
on 25 February. This reflects the Group's strong cash generation,
balance sheet strength and the Board's confidence in the future
growth prospects of the business. To date, we have completed an
initial tranche of $150 million and are currently progressing with
a second tranche of $75 million.
Following the acquisition of Custopharm, we now expect core net
finance expense to be around $64 million, compared to our previous
guidance of around $55 million
We will announce our interim results for the six months ended 30
June 2022 on 4 August 2022.
[1] Source: IQVIA MAT through February 2022, generic injectable
volumes by eaches, excluding branded generics.
-- ENDS --
Enquiries :
Hikma (Investors)
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
Teneo (Press)
Charles Armitstead + 44 (0) 7703 330269
Camilla Cunningham + 44 (0) 7464 982426
About Hikma
Hikma Pharmaceuticals PLC (LSE: HIK) (NASDAQ Dubai: HIK) (OTC:
HKMPY) (LEI:549300BNS685UXH4JI75) (rated BBB-/stable S&P and
BBB-/stable Fitch)
Hikma helps put better health within reach every day for
millions of people 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
8,700 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)2022 Hikma Pharmaceuticals PLC. All rights reserved.
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