Hikma Pharmaceuticals reports steady growth outlook ahead of AGM, expands inhalation platform

JORDAN—Hikma Pharmaceuticals has reported solid trading performance across its core businesses ahead of its Annual General Meeting (AGM), supported by a differentiated portfolio, recent product launches, and expanding commercial capabilities.

Chief Executive Officer Said Darwazah said the company’s three business segments continue to perform well, driven by sustained demand and ongoing investments in innovation.

He emphasized that Hikma remains focused on strengthening its pipeline and has recently signed a device partnership to support its inhalation platform, which is expected to drive growth in the Rx division.

The Injectables business has started the year strongly, with consistent demand across key markets.

In the United States, the company continues to enhance its supply chain, manufacturing network, and research and development capabilities to support long-term growth.

Notably, its ready-to-use vancomycin product, Tyzavan®, is gaining traction as more customers adopt the treatment.

Meanwhile, expansion work at its Bedford, Ohio, facility is progressing as planned.

Across Europe, Hikma has recorded a robust start, particularly in Germany and France, while its MENA Injectables segment continues to show positive momentum.

The company expects injectables revenue to grow in the low single digits in 2026, with core operating margins ranging between 27% and 28%.

Branded and Rx business updates

Hikma’s branded business continues to deliver strong results, supported by high demand across its portfolio and deep market presence in the MENA region.

Growth is further reinforced by a steady pipeline of in-licensed and internally developed products, particularly in oncology, where the company maintains a strong position.

Hikma expects branded revenue to grow between 6% and 8% in 2026, with core operating margins of around 25%.

Meanwhile, the Rx segment is performing in line with expectations, supported by demand for its differentiated portfolio.

The company recently launched authorized generic versions of immediate- and extended-release tapentadol in the U.S., strengthening its market position.

Additionally, expansion of its Columbus manufacturing site is underway to support its growing contract manufacturing operations.

Hikma has also signed an exclusive co-development and licensing agreement to integrate device technology into its inhalation platform across multiple regions, accelerating progress on its generic Ellipta® program.

This builds on its established expertise in inhalation therapies, including its generic Advair Diskus®.

The company expects Rx revenue to remain broadly flat in 2026, with operating margins close to 20%.

Strategic moves and financial outlook
To sharpen its focus on core operations, Hikma has decided to wind down its 503B compounding business.

At the same time, the company continues to monitor geopolitical developments in the Middle East while maintaining sufficient inventory to mitigate supply chain risks.

Despite inflationary pressures linked to shipping, energy, and insurance, Hikma expects to manage costs through operational discipline.

The company forecasts overall revenue growth of 2% to 4% in 2026, with operating profit projected between USD720 million and USD770 million.

Subject to shareholder approval, Hikma will pay a final dividend of 48 cents per share, bringing the total 2025 dividend to 84 cents per share, a 5% increase from 2024.

The company is also progressing with its share buyback program of up to USD250 million, having already purchased shares worth £54.8 million (USD71.5 million).

Hikma will announce its interim results for the six months ending June 30, 2026, on August 6, 2026.