Hikma delivers strong 2023 performance and a positive outlook for 2024

Hikma Pharmaceuticals PLC (‘Hikma’ or ‘Group’), the multinational pharmaceutical company, today reports its audited results for the year ended 31 December 2023.

The Group reported revenue growth of 14% (15% in constant currency) to $2.875 billion )compared to $2.517 billion in 2022). In 2023, we continued to deliver on our purpose of making high quality medicines accessible to those that need them. All three of our businesses grew, driven by new launches, partnerships and a focus on delivering more from our existing portfolio. Riad Mishlawi was appointed CEO in September 2023, and under this new leadership, with a refreshed, ambitious strategic focus, we are well placed for our next chapter of growth. We expect Group revenue to grow in the range of 4% to 6%  in 2024.

Our strategic updates include adding differentiated products to our MENA portfolio and enhancing our pipeline through a series of exclusive licensing agreements. We expanded our Injectables capacity, adding new lines and technologies. We strengthened our contract manufacturing pipeline in Generics with several new contract wins and completed the acquisition of part of the Akorn business through a bankruptcy process for $98 million, including manufacturing equipment and portfolio and pipeline products that will support our US businesses. We also halted operations in Sudan, which represented less than 3% of Group revenue in 2022, as a result of the ongoing conflict in the country. This resulted in $83 million of impairment and costs.

Our global Injectables business, which manufactures and supplies generic injectables medicines to hospitals across North America, Europe and MENA, grew 6% in 2023 to $1.203 billion (compared to $1.140 billion in 2022), reflecting good growth in all three geographies and benefitting from the breadth of our global portfolio and advanced manufacturing capabilities. This helped to fully offset loss of sales from halting our operations in Sudan. We are the third largest generic injectable company by volume in the US^[1] and have a portfolio of over 150 products. In MENA, we achieved strong growth driven by good demand for our portfolio across most of our markets, including for our biosimilar products as we continue to launch into new markets.

During the year, the Injectables business had 28 launches in North America, 25 in MENA and 67 in Europe and ROW. We submitted 55 filings to regulatory authorities across all markets. We further developed our portfolio through new licensing agreements. Looking ahead, we expect Injectables revenue to grow in the range of 6% to 8% in 2024.

Our Branded business, which supplies branded generics and in-licensed patented products across the MENA region, grew revenue by 3% on a reported basis and 6% in constant currency, to $714 million (compared to $691 million in 2022). We have also recently become the second largest pharmaceutical company in the MENA region in by sales^[2]. This reflects a good performance across most of our markets, enabling us to fully offset the loss of sales resulting from halting our operations in Sudan and the currency headwinds due to the devaluation of the Egyptian Pound. We also saw strong demand for medicines focused on chronic illnesses, particularly our growing oral oncology portfolio. During the year, the Branded business had 32 launches and submitted 47 filings to regulatory authorities.

In 2024, we expect Branded revenue to grow in the 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, had an exceptionally strong year in 2023. Revenue grew 39%, to $937 million (compared to $672 million in 2022), driven by good volume growth in our base business, an improved pricing environment and an exceptionally strong contribution from the launch of the authorised generic of sodium oxybate. The increase in Generics core gross profit was primarily a result of improved product mix. In 2023, the Generics business launched 5 products and submitted 5 filings to regulatory authorities. In 2024, we expect Generics revenue to grow in the range of 3% to 5%.

Riad Mishlawi, Chief Executive Officer of Hikma, said: “Hikma delivered strong growth and made significant progress in 2023. All three of our businesses grew, delivering double digit Group revenue and operating profit growth with an impressive core EBITDA margin of 28%. Our results demonstrate momentum across each of our three businesses, with new product launches and partnerships continuing to expand our portfolio, including into more complex areas such as oncology.

Hikma has a resilient portfolio of diversified global businesses that are expanding to meet growing regional needs for a broad range of essential medicines. In 2023, we continued to invest for the future, strengthening our infrastructure and working closely with our customers. We have also evolved our strategy, focusing on execution and leveraging our leading market positions. I am excited about the many growth opportunities across all three of our businesses, which underpin my confidence for the future.”

About Hikma:

Hikma helps put better health within reach every day for millions of people around the world. For more than 45 years, we've been creating high-quality medicines and making them accessible to the people who need them. Headquartered in the UK, we are a global company with a local presence across North America, MENA and Europe, and we use our unique insight and expertise to transform cutting-edge science into innovative solutions that transform people's lives. For more information, please visit: www.hikma.com

[1] IQVIA MAT December 2023, generic injectable volumes by eaches, excluding branded generics and Becton Dickinson.