Hikma Pharmaceuticals’ first-half (H1) revenue grew 10% to $1.569 billion compared to $1.427 billion in H1 2023) with all its three business segments performing well. Hikma now expects Group full year revenue growth of 6% to 8%, up from previous guidance of 4% to 6%.
Hikma is a top three provider of generic sterile injectables by volume and a key supplier of non-injectable generic medicines in the US. In the Mena region, we are the second largest pharmaceutical company by sales.
Riad Mishlawi, Chief Executive Officer of Hikma, said: “We had an excellent first half of the year. All of our businesses contributed to our strong performance. We launched new products across all regions, entered new markets in Europe, and further strengthened its leadership team.
Branded business
“Hikma’s Branded business performed extremely well, benefitting from the ongoing investment in growing its portfolio of oncology and chronic treatments. Injectables is maintaining good momentum, with new launches and recently added capacity driving growth, while its strategic acquisition of Xellia’s products, manufacturing facility and R&D assets, once closed, will support the long-term prospects of this business. Generics continues to differentiate through its focus on more complex products and the quality of its US-based manufacturing capabilities. The outlook for 2024 remains strong and we are pleased to upgrade Group revenue and profit guidance.”
Hikma’s Injectables business, which manufactures and supplies generic injectables medicines to hospitals across North America, Europe and Mena, had a positive start to the year across its geographies with revenue up 4%, reflecting good growth in North America and Mena and strong demand for its own products in Europe.
Hikma is seeing good demand across its markets, and has launched 39 products, enhanced its pipeline and are investing across the business.
In June it announced the acquisition of parts of the US finished dosage form business of Xellia Pharmaceuticals (subject to US FTC approval). This transaction includes a commercial portfolio and pipeline of differentiated products, a manufacturing facility in Cleveland, Ohio, sales and marketing capabilities, and an R&D centre in Zagreb, Croatia.
US portfolio
In North America, its US portfolio now has over 160 products and continues to expand. Hikma’s Canadian business is also growing well, with seven new launches in the first half.
In Mena, both its own products and its in-licenced biosimilar franchise continue to drive success. Hikma has also made good progress with its new plants in Algeria and Morocco, which are now in the final stages of preparation for commercial production, expected in 2025.
In Europe, it officially entered Spain and the UK during the first half of 2024 and is now supplying products across the largest European markets.
During H1 2024, the Injectables business launched 13 products in North America, seven in Mena, and 19 in Europe and ROW. Hikma submitted 43 filings to regulatory authorities across all markets. Hikma further developed its portfolio through new licensing agreements. Hikma continues to expect Injectables revenue to grow in the range of 6% to 8%.
Hikma’s Branded business, which supplies branded generics and in-licensed patented products across the Mena region, grew 12% (13% in constant currency), reflecting a very good performance across its markets, driven by its oncology and chronic portfolio and early fulfilment of tenders.
Recent launches
Recent launches have been an important driver of this growth, resulting from its ongoing investments into R&D and partnerships. Hikma is also expanding its presence in the diabetes and oncology markets, launching new products across the region, and increasing the market share of its existing products. This strong performance, particularly for its oncology portfolio, more than offset foreign exchange headwinds, predominantly in Egypt where the pound devalued by around 60% in the first half. During H1 2024, the Branded business launched 19 products and submitted 23 filings to regulatory authorities.
Hikma now expects Branded revenue to grow in the high single-digits in constant currency, or in the range of 6% to 8% on a reported basis, up from previous guidance of mid to high single-digits in constant currency, or low-single digits on a reported basis.
Hikma’s Generics business, which supplies oral and other non‑injectable generic and specialty products to the US retail market performed well in the first half with 15% growth, driven by good demand across its product portfolio and good volume growth driving its top-line performance. Hafrun Fridriksdottir was appointed as President of Generics during the first half. During H1 2024, Hikma launched one product and submitted two filings to regulatory authorities.
Given the strong performance in the Generics business in the first half, Hikma now expects Generics revenue to grow in the range of 5% to 7%, up from previous guidance of 3% to 5%.--TradeArabia News Service
