Hikma announces good 2021 start, reiterates full year guidance

Hand out from Hikma.
LONDON — Hikma Pharmaceuticals (Hikma, Group), a multinational pharmaceutical group, on Friday provided an update on its shares and outlook for the rest of the year. اضافة اعلان

Siggi Olafsson, Hikma’s CEO, said: “2021 is off to a good start with performance in line with our expectations. Our broad portfolio of essential medicines, strong commercial capabilities and over 30 new product launches across our markets have supported this progress. We expect to build on this momentum and are pleased to have recently resumed the launch of our high-quality, substitutable generic version of Advair Diskus.

“As the COVID-19 pandemic continues to impact people and communities around the world, we remain focused on delivering the high-quality products needed by patients across our markets. Our full-year outlook for the group is unchanged and we remain confident in our ability to deliver consistent long-term, sustainable growth,” Olafsson said in the statement.

Hikma said their global injectables business is performing well and that in the US, new product launches and demand for their broader portfolio are partially offsetting reduced demand for COVID-19 related products and the gradual return of elective surgeries. In Europe, the group said they are seeing good demand from recent launches and contract manufacturing, continuing the strong performance the group saw through 2020. The MENA region is also seeing good demand across our markets. 

Hikma has also made good progress in expanding their global injectables pipeline, demonstrated by the recently announced expansion of “our licencing agreement with Melinta in the MENA region, adding two novel anti-infective products, and the licencing of Combogesic IV from AFT Pharmaceuticals, expanding our pipeline of non-opioid pain management treatments,” they said in the statement. 

The group expects global injectables to remain their core revenue to grow in the mid-single digits and core operating margin to be in the range of 37 to 38 percent. 

The group’s generics business is also having a good start to the year. “We have also seen continued demand for certain COVID-19 related products, and a good performance from recent launches, which is more than offsetting increased competition on certain products, in line with our expectations,” the statement added. 

The group has also announced the US FDA approval of KLOXXADO (naloxone nasal spray 8mg), a new branded treatment option in addressing the opioid epidemic. 

According to the statement, Hikma now expects their yearly generics revenue to be towards the top end of their guidance range of $770 million to $810 million and core operating margin to be around 20 percent. 

The statement added that their branded business is also performing well, including across Tier 1 markets — Saudi Arabia, Egypt, and Algeria. 

The group expects branded revenue growth in constant currency to be in the mid-single digits for the full year in 2021. 

At the group’s annual general meeting on April 23, 2021, their 2020 final dividend of 34 cents per share was approved and has been paid to shareholders. The final dividend brings the total dividend for the full 2020 year to 50 cents per share, an increase of 14 percent on 2019. 

We will announce our interim results for the six months to 30 June 2021 on 6 August 2021.

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