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Riad Mishlawi

Hikma 2023 revenue grows 14pc to $2.88bn; sees robust 2024

AMMAN, February 22, 2024

Hikma Pharmaceuticals has posted revenue growth of 14% (15% in constant currency) to $2.88 billion in 2023 compared to $2.52 billion in 2022. 
 
In 2023, it continued to deliver on its purpose of making high quality medicines accessible to those that need them. All three of its businesses grew, driven by new launches, partnerships and a focus on delivering more from its existing portfolio. The group expects revenue to grow in the range of 4% to 6% in 2024. 
 
The firm’s strategic updates include adding differentiated products to its Mena portfolio and enhancing its pipeline through a series of exclusive licensing agreements. 
 
Injectables capacity
“We expanded our Injectables capacity, adding new lines and technologies. We strengthened our contract manufacturing pipeline in Generics with several new contract wins and completed the acquisition of part of the Akorn business through a bankruptcy process for $98 million, including manufacturing equipment and portfolio and pipeline products that will support our US businesses. We also halted operations in Sudan, which represented less than 3% of Group revenue in 2022, as a result of the ongoing conflict in the country. This resulted in $83 million of impairment and costs,” a Hikma release said.
 
Hikma’s global Injectables business, which manufactures and supplies generic injectables medicines to hospitals across North America, Europe and Mena, grew 6% in 2023 to $1.203 billion (compared to $1.140 billion in 2022), reflecting good growth in all three geographies and benefitting from the breadth of its global portfolio and advanced manufacturing capabilities. 
 
This helped to fully offset loss of sales from halting its operations in Sudan. Hikma is the third largest generic injectable company by volume in the US and has a portfolio of over 150 products. In Mena, it achieved strong growth driven by good demand for its portfolio across most of its markets, including for its biosimilar products as it continues to launch into new markets. 
 
During the year, the Injectables business had 28 launches in North America, 25 in Mena and 67 in Europe and ROW. Hikma submitted 55 filings to regulatory authorities across all markets. It further developed its portfolio through new licensing agreements. Looking ahead, Hikma expects Injectables revenue to grow in the range of 6% to 8% in 2024.
 
Branded business
Hikma’s Branded business, which supplies branded generics and in-licensed patented products across the Mena region, grew revenue by 3% on a reported basis and 6% in constant currency, to $714 million (compared to $691 million in 2022). It has also recently become the second largest pharmaceutical company in the Mena region in by sales. 
 
Hikma also saw strong demand for medicines focused on chronic illnesses, particularly its growing oral oncology portfolio. During the year, the Branded business had 32 launches and submitted 47 filings to regulatory authorities.
 
In 2024, Hikma expects Branded revenue to grow in the mid to high single-digits in constant currency, or low-single digits on a reported basis.
 
Generics business
Hikma’s Generics business, which supplies oral and other non‑injectable generic and specialty products to the US retail market, had an exceptionally strong year in 2023. Revenue grew 39%, to $937 million (compared to $672 million in 2022), driven by good volume growth in its base business, an improved pricing environment and an exceptionally strong contribution from the launch of the authorised generic of sodium oxybate. 
 
The increase in Generics core gross profit was primarily a result of improved product mix. In 2023, the Generics business launched 5 products and submitted 5 filings to regulatory authorities. In 2024, it expects Generics revenue to grow in the range of 3% to 5%. 
 
Riad Mishlawi, Chief Executive Officer of Hikma, said: “Hikma delivered strong growth and made significant progress in 2023. All three of our businesses grew, delivering double digit Group revenue and operating profit growth with an impressive core EBITDA margin of 28%. Our results demonstrate momentum across each of our three businesses, with new product launches and partnerships continuing to expand our portfolio, including into more complex areas such as oncology. 
 
“Hikma has a resilient portfolio of diversified global businesses that are expanding to meet growing regional needs for a broad range of essential medicines. In 2023, we continued to invest for the future, strengthening our infrastructure and working closely with our customers. We have also evolved our strategy, focusing on execution and leveraging our leading market positions. I am excited about the many growth opportunities across all three of our businesses, which underpin my confidence for the future.”--TradeArabia News Service
 



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