6th Nov 2025 10:18
(Alliance News) - Hikma Pharmaceuticals PLC on Thursday reduced medium term guidance and cut the top-end of its 2025 core operating profit view amid a delayed start to production at a US site.
In response, shares in the London-based pharmaceutical company slumped 11% to 1,577.00 pence each in London on Thursday morning, the worst performer on the FTSE 100.
Hikma now expects three-year compound annual revenue growth from 2024 to 2027 to be at the lower end of the 6% to 8% range.
In addition, the firm now expects core operating profit to grow in the range of 5% to 7%, down from the previous guidance range of 7% to 9%.
Over the medium-term, Hikma expects Injectables margins of approximately 30%, compared to previous guidance which was around the mid-30s.
This reflects a delay to the start of production at the new Bedford, Ohio manufacturing facility, partially related to global supply chain challenges.
Hikma now expects Bedford to be fully operational towards the end of 2027, with associated revenue accelerating in 2028.
The guidance also reflects an "evolving geographic and product mix, capacity expansion projects across our global footprint and an increase in investment in R&D."
Hikma said its longer-term target for group revenue to reach USD5 billion by 2030 is unchanged.
"While we have adjusted our medium-term expectations, I am confident that these investments will enable us to deliver our revised growth targets," said Chief Executive Riad Mishlawi.
For 2025, Hikma expects revenue to grow in the range of 4% to 6% but lowered the top-end of its guidance range for core operating profit.
Hikma expects core operating profit of USD730 million to USD750 million, which it said is in line with current market expectations, compared to the previous range of USD730 million to USD770 million.
In 2024, Hikma reported revenue of USD3.16 billion and core operating profit of USD719 million.
For 2025, Hikma continues to expect 2025 Injectables revenue growth to be in the range of 7% to 9% and for core operating margin to be in the range of 32% to 33%.
It continues to expect 2025 Branded revenue to grow in the range of 6% to 7%, with the core earnings before interest and tax margin close to 25%.
At Hikma Rx, the firm continues to expect revenue to be broadly flat in 2025 with a core operating margin of around 16%.
In addition, Hikma said it has centralised R&D under a global structure, led by Hafrun Fridriksdottir, who will also continue to lead the Hikma Rx business, "in order to accelerate pipeline development and realise synergies."
By Jeremy Cutler, Alliance News reporter
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