Hikma Pharmaceuticals PLC shares fell almost 16% to 1,390p after the drugs group delivered results for 2025 in line with forecasts but disappointed with weaker than expected guidance for 2026.
Executive chair Said Darwazah will become full-time chief executive for the next two years, with current chief financial officer Khalid Nabilsi becoming deputy chief executive with responsibility for North America and Europe. Group finance chief Areb Kurdi will serve as acting chief financial officer while a search for a permanent CFO is underway.
Revenue rose 7% to £3.3 billion, while operating profit fell 11% to £542 million, reflecting margin pressure despite the increase in sales.
Injectables revenues rose 7%, in line with guidance of 7-9%. Generics were flat, as guided, while Branded grew 10%, ahead of its 6-7% target.
Results were broadly in line with expectations at group level, with revenues, operating profit and adjusted earnings per share matching expectations, sweetened with a new $250 million share buyback for 2026.
However, attention was more on 2026 for investors, it seemed, as the company guided to group revenue growth of 2-4%, below consensus expectations of 5.6%.
Injectables growth is expected to be in the low single digits, well below the 8% pencilled in by the market.
Margin guidance also missed, with Injectables EBIT margin is seen at 27-28%, materially below the consensus forecast of 30.5% and prior guidance of around 30%.
The group has also withdrawn prior mid term guidance for Injectables and the wider business.
Analyst Seb Jantet at Panmure Liberum said: "What Hikma needed was a reassuring set of results but that isn’t what the company delivered this morning.
"While FY25 was in line with expectations, the guidance for FY26E was disappointing, particularly in Injectables and it likely to trigger circa 5% downgrades to consensus numbers."
The buyback, seen as a way to soften the pill of guidance and changes to the management team, "is unlikely to be enough to stabilise the share price", Jantet said.