Hikma Pharmaceuticals PLC (LSE:HIK, OTC:HKMPF) shares fell almsot 13% to 1,547p after the generic drug manufacturer lowered medium-term guidance for its injectables division.
This was alongside a third-quarter trading update that was broadly in line with expectations, with the FTSE 100 company reaffirming its full-year revenue growth guidance of 4% to 6%.
Core operating profit guidance was narrowed from a range of $730 million to $770 million to a slightly tighter band of $730 million to $750 million, close to the current consensus forecast of $740 million.
Guidance for the injectables division in the current year was left unchanged, easing market concerns that those targets were at risk.
However, the company revised its medium-term margin expectations for injectables down to around 30%, from a previous range in the mid-30s.
"This reflects a change in our expectations for the commencement of commercial production at our new Bedford manufacturing facility, partially related to global supply chain challenges," the company said.
Bedford is now expected to be fully operational towards the end of 2027, with associated revenues accelerating in 2028.
As a result, Hikma also lowered its medium-term group revenue growth forecast to the lower end of the 6% to 8% range, and expected EBIT growth to 5% to 7%, down from 7% to 9%.
The update noted a restructuring of R&D operations, with the departure of injectables division CEO Bill Larkins, with group CEO Riad Mishlawi stepping in as the interim head of this business, having previously been president of the injectables business.
R&D is now centralised globally to speed up development and boost efficiency, focusing on injectables, respiratory and liquid medicines, and solid orals to deliver more advanced, high-value products.