TIDMHIK
RNS Number : 0980S
Hikma Pharmaceuticals Plc
02 November 2023
Hikma continues strong momentum across the Group and upgrades
guidance for 2023
London, 2 November 2023 - Hikma Pharmaceuticals PLC (Hikma,
Group), the multinational pharmaceutical group, today provides an
update on current trading.
Riad Mishlawi, Chief Executive Officer of Hikma, said:
"The good momentum during the first half has continued, enabling
us to upgrade full year guidance in two of our three businesses.
Our Branded business is performing exceptionally well on an
underlying basis and our Generics business has seen key products
continuing to drive better-than-expected performance. In
Injectables, we are seeing solid growth, supported by a good
performance in MENA and Europe, and we have continued to invest
across all our regions to expand manufacturing capacity and build
our pipeline. Overall, the Group is making excellent progress and
we are on track to deliver very strong earnings growth for the full
year."
Injectables
We continue to see solid growth in our global Injectables
business. In North America, while we have continued to see strong
customer demand for our broad product portfolio and a good
contribution from new product launches in the second half, growth
has been lower than expected due to short-term supply and capacity
constraints. These constraints are easing as newly installed
high-speed manufacturing lines in both our Cherry Hill and Portugal
facilities are becoming fully operational and we are
well-positioned to meet demand in 2024.
Our MENA business is performing very well, with launches driving
growth and offsetting the loss of sales in Sudan. In Europe, we are
delivering strong growth in Germany and Italy and are gradually
building share in Spain, France, and the UK.
We are continuing to invest extensively across our Injectables
business to expand our portfolio and manufacturing capacity. We are
making good progress on our new facilities in Morocco and Algeria
and are gradually advancing our 503B sterile compounding business
in the US.
We now expect full year revenue growth and core operating margin
to be at the lower end of our guidance range of 7% to 9% and 36% to
37%, respectively. This takes into consideration the closure of our
Sudanese manufacturing facility, investment in our compounding
business and the short-term capacity constraints in the US.
Branded
Our Branded business continues to see strong demand. Medicines
used to treat chronic illnesses are driving growth across our key
MENA markets, offsetting the combined headwinds of the devaluation
of the Egyptian Pound and the closure of our Sudanese manufacturing
facility. Leveraging our local manufacturing presence and strong
commercial teams, we continue to launch new products, including
first-to-market generics and innovative in-licenced products. Our
teams are focused on driving efficiencies at our facilities across
the region, and this, combined with a favourable product mix, is
leading to improved profitability.
We continue to expect Branded revenue to grow in the mid-to-high
single digits in constant currency. On a reported basis, assuming
no further adverse currency movements, we continue to expect
Branded revenue to be in line with 2022, offsetting headwinds
resulting from the devaluation of the Egyptian Pound and the
closure of our Sudan operations. Due to our strong performance and
focus on efficiencies, we now expect core operating margin to
expand to around 23% for the full year.
Generics
Our Generics business continues to have an excellent year, as we
benefit from favourable market dynamics across our base business
and a stronger than expected revenue contribution from our
authorised generic of sodium oxybate.
We are pleased with the efforts we are making to utilise spare
capacity at our Columbus plant for contract manufacturing and are
making good progress with our specialty products.
We now expect 2023 revenue in the range of $920 million to $940
million and core operating margin of around 20%, up from previous
guidance of close to 30% growth and margins of 18% to 20%.
-- ENDS --
Enquiries:
Hikma (Investors)
Susan Ringdal
EVP, Strategic Planning and Global +44 (0)20 7399 2760/ +44 (0)7776
Affairs 477050
Guy Featherstone +44 (0)20 3892 4389/ +44 (0)7795
Associate Director, Investor Relations 896738
Layan Kalisse +44 (0)20 7399 2788/ +44 (0)7970
Senior Associate, Investor Relations 709912
Teneo (Press)
Charles Armitstead + 44 (0) 7703 330269
About Hikma
Hikma Pharmaceuticals PLC (LSE: HIK) (NASDAQ Dubai: HIK) (OTC:
HKMPY) (LEI:549300BNS685UXH4JI75) (rated BBB-/stable S&P and
BBB-/positive Fitch)
Hikma helps put better health within reach every day for
millions of people around the world. For more than 45 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 North America, 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
8,800 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)2023 Hikma Pharmaceuticals PLC. All rights reserved.
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