Amman: Hikma Pharmaceuticals PLC (Hikma, Group), the multinational pharmaceutical group, has released an update on its current trading. Riad Mishlawi, Hikma’s CEO, expressed satisfaction with the company’s progress this year, confirming that they are on track to deliver a robust performance in 2024, aligned with their existing guidance. He highlighted contributions from all three business segments, with new product launches across various markets and investments in infrastructure fueling confidence for the future. The strategic accomplishments during the period include the completion of the Xellia acquisition and a significant contract manufacturing agreement for the Generics business.
According to Jordan News Agency, the Group continues to perform well, expecting a revenue growth range of 6% to 8% and a core operating profit between $700 million and $730 million in 2024, consistent with their previously upgraded guidance. In the global Injectables business, growth has surged in the year’s second half, prima
rily driven by increased contract manufacturing in Europe and sustained product demand, including in new markets. The MENA Injectables business is also performing effectively, bolstered by recent product launches.
In North America, robust demand persists for Hikma’s vast product portfolio, with ten new products launched to date and more anticipated by year’s end. The Xellia acquisition completed in September is projected to add approximately $20 million in revenue this year, with efforts now focused on integrating this business and enhancing the Bedford, Ohio manufacturing facility. Excluding the Xellia acquisition, Hikma forecasts a 6% to 8% revenue growth for its global operations in 2024, with core operating margins expected between 36% and 37%.
The company’s branded products are thriving, benefiting from Hikma’s leading supplier status in the region and deep understanding of local healthcare needs, resulting in strong demand for oncology, diabetes, and cardiovascular products. As previously noted, opera
ting costs will be weighted towards the second half as investments are directed towards pipeline development, focusing on first-to-market and first-generic opportunities and commercial activities to support the portfolio.
Hikma maintains its guidance for branded revenue growth in the high-single digits in constant currency, or 6% to 8% on a reported basis, with a core operating margin around 25%. The Generics business also continues to perform excellently, driven by a broad and diversified portfolio, notably in nasal and inhalation products and recent launches. This diverse portfolio helps mitigate the anticipated competition increase for certain products.
Hikma is concentrating on reinforcing its portfolio and pipeline for the Generics segment, with RandD investments having risen compared to the first half of the year. Significant progress has been achieved in establishing a robust contract manufacturing (CMO) business, including a new long-term contract with a global pharmaceutical company, with commercia
l production expected to start in 2027, subject to FDA approvals. The CMO business is integral to Hikma’s Generics strategy, supporting stronger revenue growth and profitability while enhancing the utilization of the Columbus, Ohio facility. Generics revenue is projected to grow in the range of 5% to 7% in 2024, with core operating margins anticipated between 16% and 17%.