Hikma Pharmaceuticals (HIK) Investor Update summary

Strategic Focus and Market Positioning

• Holds the second-largest market share in MENA, aiming to become the leading pharmaceutical player by addressing unmet needs, especially non-communicable and chronic diseases, with affordable, differentiated products and robust pipelines.

• Operates in 17 MENA markets with tailored business models, strong local teams, 20 manufacturing plants, and 5 R&D centers.

• MENA region contributed up to 32% of group revenue and 21% of group operating profit in 2023, with branded and injectables as key contributors.

• Key markets include Saudi Arabia, Algeria, and Egypt, with expansion in Morocco and other regions.

• Maintains a strong balance sheet and is recognized as a partner of choice for regulators, licensors, and patients.

Product Pipeline and Innovation

• Pipeline increasingly focused on chronic diseases and oncology, with chronic products expected to reach 63% of the portfolio in five years.

• 75% of top 20 pipeline projects are first-to-market or first-generic, with 65% of recent launches in these categories.

• Differentiation achieved through R&D expertise, technical complexity, and partnerships, including mitigation of impurities and advanced manufacturing techniques.

• Business development accelerated, with 31 agreements in 2.5 years, focusing on innovative, complex, and patented products.

• Partnerships with companies like Celltrion and SK Biopharma expand access to biosimilars, CNS, oncology, diagnostics, and precision medicine.

Operational Efficiency and Local Manufacturing

• Upgrading manufacturing sites with advanced machinery to increase capacity and reduce costs, supporting both local and export markets.

• Local manufacturing provides regulatory and market access advantages, especially in closed markets like Egypt, Algeria, and Morocco.

• Exports within MENA and to Africa help hedge FX risks and optimize product availability.

• Operational excellence and cost discipline are prioritized, with dual or triple API suppliers to ensure best pricing.

• Ongoing investment in R&D and local capabilities to maintain leadership and support future growth.