Interim Management Statement

RNS Number : 4377G

Hikma Pharmaceuticals Plc

12 May 2011

 



AGM and Interim Management Statement

London, 12 May 2011 - Hikma Pharmaceuticals PLC (LSE: HIK) (NASDAQ Dubai: HIK), the fast growing multinational pharmaceutical group, will hold its Annual General Meeting today where the following statement will be made regarding its current trading and financial position. This constitutes its Interim Management Statement relating to the period from 1 January 2011 to 11 May 2011 as required by the UK Listing Authority's Disclosure and Transparency Rules.

Hikma is performing well, benefitting from the diversity of its business model.  We therefore maintain our 2011 Group guidance of around 7% revenue growth and gross margin of around 47%, excluding the Multi-Source Injectables ('MSI') business. 

Branded

Our businesses in Egypt, Tunisia and Bahrain are performing well following disruptions in these markets at the beginning of the year and we are very pleased with the speed at which our operations are returning to normal.  Demand is strong across most of our other MENA markets, although sales activities in Libya and Yemen remain limited.  Overall, we are maintaining our guidance for Branded revenue growth of around 7% for the full year, but will continue to monitor closely the effect that the current unrest is having in the affected markets. 

Injectables

We have delivered a good performance in our Injectables business in the year to date, particularly in the MENA region.  In Europe we have been successful in offsetting continued price erosion by increasing volumes and launching new products.  In the US we have seen strong demand for our own products. In both the US and Europe we have seen an increase in our contract manufacturing business.  Overall, the Injectables business is on track to deliver strong organic growth for the full year.  In addition, the acquisition of MSI, which closed on 2 May 2011, will contribute substantially to the Injectables business going forward.

Generics

Our Generics business is also performing well, driven by strong demand across the core product portfolio and particularly for anti-infectives manufactured in our FDA approved facilities in the MENA region.   We continue to expect full year Generics revenues of around $160 million.

Other activities

Since the beginning of the year we have invested in strengthening our API supply chain and our R&D pipeline.  As previously announced, we acquired a minority stake in the Indian company Unimark Remedies Limited in April.  Through this strategic partnership, Hikma and Unimark will collaborate on the development of strategic APIs and ANDAs. Unimark's strong technical and R&D capabilities will complement Hikma's in‐house R&D efforts and are expected to enable Hikma to bring more products in more therapeutic categories to market globally.  This transaction has now closed.

Financing position

Our financing position remains very strong and will allow us to make further strategic investments across our business. 

Overall, we remain confident that we can continue to deliver strong organic growth complemented by additional acquisitions, partnerships and in-licensing activity. We will announce our interim results for the six months to 30 June 2011 on 25 August 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 2010, Hikma achieved revenues of $731 million and profit attributable to shareholders of $98.8 million.

 

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