Hikma narrows profit forecast amid ‘strong momentum’

Hikma Pharmaceuticals said it was seeing ‘strong momentum’ in its branded medicines business and narrowed its full-year profit guidance for the year.

The pharmaceutical group, the largest by sales in the Middle East and North Africa, said its branded business was performing very well, upgrading its forecast for branded revenue growth to around 10% this year, from 6% to 8%, with margins improving.

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Its injectables business was soft and is now expected to be broadly flat, while its generics arm, Hikma Rx, saw improving profitability. Injectables growth was previously expected to post low single-digit growth; this is slightly disappointing and could be why shares were 3% lower on Thursday.

The company narrowed its expected full-year group operating profit to between $740m and $760m, from a previous range of $720m to $770m, raising the lower end. It said regional demand remained robust despite geopolitical developments in the Middle East, and that it continued to invest in new products, including an epinephrine nasal spray filed with US regulators.

Said Darwazah, Hikma’s CEO, said: “We are seeing strong momentum at Hikma, delivering on the commitments we made at the beginning of the year.”

“The Group’s performance year-to-date is in line with our expectations, reflecting the strength of our diversified business. Branded is outperforming, profitability in Hikma Rx is improving, and Injectables is stabilising, well positioned for future growth. We have expanded our portfolio and pipeline through new launches and an increased investment in R&D. Reflecting this performance and our expectations for trading as we close the year, we are pleased to narrow our expected Group operating profit range to $740 million
 to $760 million.”