Hikma Pharmaceuticals PLC (LON:HIK) investors won’t have much to grumble about at today’s annual general meeting, after the drugmaker confirmed it is “off to a good start” in 2019.
The FTSE 100-listed company, which makes everything from painkillers to antibiotics to thrombosis treatments, repeated its guidance for the year.
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In its injectables division, it expects sales to rise slightly to a range of US$850-900mln, with core margins somewhere between 35-38%.
In generics, revenue is expected to come in broadly flat on last year at between US$650-700mln, as new products launches and market share gains offset a fall in prices. Branded revenue is forecast to grow by a “mid-single digits” percentage in 2019.
Chief executive Siggi Olaffson said Hikma had built on the momentum gained throughout 2018, when it swung back to a profit after a “challenging” 2017.
Strong demand and new product launches
Across the pond, “strong demand” for the $4bn company’s portfolio of vaccines and injections is more than offsetting the impact of growing competition, while in Europe, the division is “on track to deliver good growth”.
Hikma’s generics arm has also enjoyed a “strong start to the year”, with good revenue growth, driven by a more differentiated portfolio.
As with last year, the second half of 2019 is where the branded side of the business will come into its own, reflecting the usual seasonality in that division. Still, it is “delivering good growth” with Hikma reporting more “strong demand” in some of its key markets.
Boss ‘confident’ in outlook for 2019
“We delivered strong growth in revenue and profitability last year, while making significant strategic progress,” said CEO Olaffson. “We have been building on this momentum and 2019 is off to a good start.”
He added: “I am pleased to reiterate our full year guidance for 2019 and we remain confident in the outlook for the group and our ability to deliver long-term, sustainable growth.”
In early trading, Hikma shares edged 0.3% higher to 1,789p.
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