Hikma Pharmaceuticals PLC and its subsidiaries (‘Hikma’ or ‘Group’), the multinational pharmaceutical company, today reports its interim results for the six months ended 30 June 2024.
The Group reported revenue growth of 10% (10% in constant currency) to $1.569 billion (compared to $1.427 billion in H1 2023). We have made excellent progress in the first half of 2024 with growth in all three business segments as we continue to position ourselves for the future. We are a top three provider of generic sterile injectables by volume[1] and a key supplier of non-injectable generic medicines in the US. In the MENA region, we are the second largest pharmaceutical company by sales[2]. We now expect Group full year revenue growth of 6% to 8%, up from previous guidance of 4% to 6%.
Riad Mishlawi, Chief Executive Officer of Hikma, said:
“We had an excellent first half of the year. All of our businesses contributed to our strong performance, delivering 10% Group revenue growth. We launched new products across all regions, entered new markets in Europe, and further strengthened our leadership team.
Our Branded business performed extremely well, benefitting from the ongoing investment in growing our portfolio of oncology and chronic treatments. Injectables is maintaining good momentum, with new launches and recently added capacity driving growth, while our strategic acquisition of Xellia’s products, manufacturing facility and R&D assets, once closed, will support the long-term prospects of this business. Generics continues to differentiate through our focus on more complex products and the quality of our US-based manufacturing capabilities. The outlook for 2024 remains strong and we are pleased to upgrade Group revenue and profit guidance.”
Our Injectables[3] business, which manufactures and supplies generic injectables medicines to hospitals across North America, Europe and MENA, had a positive start to the year across our geographies with revenue up 4%, reflecting good growth in North America and MENA and strong demand for our own products in Europe. We are seeing good demand across our markets, have launched 39 products, enhanced our pipeline and are investing across the business.
In June we announced the acquisition of parts of the US finished dosage form business of Xellia Pharmaceuticals (subject to US FTC approval). This exciting transaction includes a commercial portfolio and pipeline of differentiated products, a manufacturing facility in Cleveland, Ohio, sales and marketing capabilities, and an R&D centre in Zagreb, Croatia.
In North America, our US portfolio now has over 160 products and continues to expand. Our Canadian business is also growing well, with seven new launches in the first half.
In MENA, both our own products and our in-licenced biosimilar franchise continue to drive success. We have also made good progress with our new plants in Algeria and Morocco, which are now in the final stages of preparation for commercial production, expected in 2025.
In Europe, we officially entered Spain and the UK during the first half of 2024 and are now supplying products across the largest European markets.
During H1 2024, the Injectables business launched 13 products in North America, seven in MENA, and 19 in Europe and ROW. We submitted 43 filings to regulatory authorities across all markets. We further developed our portfolio through new licensing agreements. We continue to expect Injectables revenue to grow in the range of 6% to 8%.
Our Branded business, which supplies branded generics and in-licensed patented products across the MENA region, grew 12% (13% in constant currency), reflecting a very good performance across our markets, driven by our oncology and chronic portfolio and early fulfilment of tenders.
Recent launches have been an important driver of this growth, resulting from our ongoing investments into R&D and partnerships. We are also expanding our presence in the diabetes and oncology markets, launching new products across the region, and increasing the market share of our existing products. This strong performance, particularly for our oncology portfolio, more than offset foreign exchange headwinds, predominantly in Egypt where the pound devalued by around 60% in the first half. During H1 2024, the Branded business launched 19 products and submitted 23 filings to regulatory authorities.
We now expect Branded revenue to grow in the high single-digits in constant currency, or in the range of 6% to 8% on a reported basis, up from previous guidance of mid to high single-digits in constant currency, or low-single digits on a reported basis.
Our Generics business, which supplies oral and other non‑injectable generic and specialty products to the US retail market performed well in the first half with 15% growth, driven by good demand across our product portfolio and good volume growth driving our top-line performance. Hafrun Fridriksdottir was appointed as President of Generics during the first half. During H1 2024, we launched one product and submitted two filings to regulatory authorities.
Given the strong performance in the Generics business in the first half, we now expect Generics revenue to grow in the range of 5% to 7%, up from previous guidance of 3% to 5%.
[1] IQVIA MAT May 2024, generic injectable volumes by eaches, excluding branded generics and Becton Dickinson
[2] [IQVIA MIDAS Pharma Index MAT May-2024. Does not include hospital or tender business
[3] During H2 2023, the Group revised its Injectables operating segment. Previously, the 503B compounding business was reported under the Injectables segment and is now included within the Others segment. 503B compounding business’ H1 2023 revenue of $1 million and operating loss of $7 million have therefore been reclassified to the Others segment. H1 2024 Others revenue was $13 million (H1 2023: $8 million) with an operating loss of $3 million (H1 2023: $5 million loss).
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