LONDON (Alliance News) - Hikma Pharmaceuticals PLC on Friday reiterated its 2019 guidance and expressed confidence in its outlook, with Injectables likely to be its strongest performing unit.
Hikma, which makes branded and non-branded generic drugs, saod its Injectables business has performed well, with strong demand offsetting rising competition in the US. Hikma has launched three new products under Injectables in 2019 so far.
For 2019, Hikma is forecasting global Injectables revenue of between USD850 million and USD900 million. In 2018, Injectables revenue was USD826 million and accounted for 40% of revenue.
Revenue growth is to come from new product launches and "good demand" for its in-market portfolio, which are expected to offset price erosion and shrinking demand for products on shortage. Injectables' core operating margin is due to be between 35% and 38%, down from 40% in 2018.
For its Generics unit, a "more differentiated product portfolio" has helped drive revenue growth in 2019 so far and Hikma's improved commercial and operation capabilities have boosted volumes.
The company reiterated its expectations for revenue between USD650 million and USD700 million in 2019 as a whole, having recorded revenue of USD692 million in 2018 and USD615 million in 2017. Increased competition in Generics is likely to hurt Hikma's marketed portfolio, although its market share gains and new product launches should moderate this somewhat.
Hikma will pursue cost reduction and operational efficiencies within Generics in 2019 and it expects a core operating profit in the mid-teens, compared to 13% in 2018.
The pharma company's Branded business has experienced "good growth" in 2019 with demand in some key markets. As with 2018, Hikma is forecasting a stronger second half for Branded, with mid-single digit revenue growth at constant currency. Branded revenue was USD542 million in 2018 and core operating margin growth was 22%.
Hikma will announce its interim results for the six months to June 30 on August 9.
"2019 is off to a good start. Across our three businesses, we are driving good demand for our broad product portfolio and recent product launches. We continue to strengthen our capabilities, pipeline and business operations, whilst maintaining our focus on cost reduction. I am pleased to reiterate our full year guidance for 2019 and we remain confident in the outlook for the group," said Hikma Chief Executive Siggi Olafsson.
Shares in Hikma were up 0.4% on Friday morning at 1,791.50 pence.
Hikma Pharmaceuticals (HIK)