Interim Management Statement

RNS Number : 0618W

Hikma Pharmaceuticals Plc

12 November 2010

 



Interim Management Statement

London, 12 November 2010 - Hikma Pharmaceuticals PLC (LSE: HIK) (NASDAQ Dubai: HIK), the fast growing multinational pharmaceutical group, is today updating the market with its Interim Management Statement relating to the period from 1 July 2010 to date as required by the UK Listing Authority's Disclosure and Transparency Rules.

Hikma continues to benefit from the strength of its diversified business model and is performing well in the year to date.  We therefore reiterate our guidance for 2010 Group revenue growth in the low teens and for gross margin higher than in 2009.

Branded

We are delivering strong growth across many of our MENA markets in the second half, with a good performance in the Algerian market.  We reiterate our guidance of low double digit revenue growth for the Branded business for the full year. 

We continue to demonstrate our position as the partner of choice in the MENA region.  Since the beginning of the second half, we have entered into two new licensing agreements covering all of our markets in MENA, one with Piramal Healthcare for sevoflurane, an inhalation anaesthetic, and one with Siraeo for Infasurf®, their leading respiratory product. 

Injectables

Sales in our global Injectables business have been accelerating in the second half.  Sales growth has been particularly strong in our US Injectables business, driven by demand for our own products and for our contract manufacturing services.  Sales in Europe are stable, despite pricing pressure in our main European markets and the supplementary reimbursement scheme implemented in Germany in January 2010, and sales are picking up in the MENA region.  For the full year we expect the overall Injectables segment to perform well with a significant improvement in operating margin. 

On 29 October 2010, we announced the acquisition of Baxter Healthcare Corporation's US generic injectables business.  This acquisition will transform our Injectables business, doubling the size of our global Injectable sales, while at the same time doubling our total sales in the US market, and positioning Hikma, through its wholly-owned subsidiary West-Ward Pharmaceuticals ('West-Ward'), as the second largest supplier by volume of injectable generics in the US market. 

Generics

Our Generics business continues to perform very well.  Sales through September were particularly strong driven by a solid performance in our core business and enhanced by exceptional sales from certain products.  During the period, West-Ward resolved its dispute with Mutual Pharmaceutical Company, Inc. in respect of the supply of oral colchicine tablets to the parties' mutual satisfaction.  West-Ward has discontinued sales of oral colchicine until approval of its New Drug Application by the U.S. Food and Drug Administration.

We continue to expect to deliver at least 20% sales growth in this business for the full year with an exceptionally high operating margin.  This reflects the strong performance in our underlying business, as well as the excellent opportunities we have captured so far this year.

Financing position

Our financing position remains very strong, allowing us to actively pursue acquisition opportunities across our business in addition to the announced purchase of Baxter Healthcare's generic injectables business. 

We remain confident that our strategy of organic growth supplemented by acquisitions and partnerships will continue to deliver excellent results for the Group. 

We plan to announce our preliminary results for the twelve months to 31 December 2010 on 16 March 2011.

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Enquiries:

Hikma Pharmaceuticals PLC
Susan Ringdal Investor Relations Director	[phone]

Financial Dynamics

Ben Atwell/Julia Phillips/Jonathan Birt/Matthew Cole	[phone]

About Hikma

Hikma Pharmaceuticals PLC is a fast growing multinational group focused on developing, manufacturing and marketing a broad range of both branded and non-branded generic and in-licensed products.  Hikma operates through three businesses: "Branded", "Injectables" and "Generics", based principally in the Middle East and North Africa ("MENA"), where it is a market leader, the United States and Europe.  In 2009, Hikma achieved revenues of $637 million and profit attributable to shareholders of $78 million. For news and other information, please visit www.hikma.com.

 

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