Hikma Pharmaceuticals (HIK) Trading Update summary

Business performance and outlook

• On track to meet 2025 guidance, with all business segments performing well and strong growth in Europe and MENA, though margins are lower than in the U.S.

• Group revenue CAGR for 2024-2027 expected at the lower end of 6%-8%, with core EBIT CAGR revised to 5%-7%.

• 2025 Group revenue expected to grow 4%-6%, with core operating profit of $730–$750 million.

• Long-term target of $5 billion group revenue by 2030 reaffirmed.

• New product launches, partnerships, and manufacturing expansion drive progress.

Injectable segment update

• Medium-term injectable margins now guided at around 30%, down from mid-30s, due to Bedford delays, higher R&D, partnerships, and geographic expansion.

• Injectables revenue growth for 2025 forecast at 7%-9%, with core margin of 32%-33%.

• Bedford facility operational delay to end-2027 shifts commercial benefits to 2028.

• Partnerships and ex-U.S. growth contribute to lower but still industry-leading margins.

• Margin guidance set as a confident floor, with potential to outperform.

Rx (Generics) segment update

• Rx margins expected to approach 20% by 2026, driven by a strong base portfolio, pipeline, and CMO growth.

• Hikma Rx revenue projected to be broadly flat in 2025, with core margin around 16%.

• Contract manufacturing and increased R&D spend (up to 70% by 2027) are key growth drivers.

• Margin improvement not solely reliant on royalty agreements; base business and new launches also contribute.

• Rx business now seen as solid and healthy, with further expansion anticipated.