Hikma Pharmaceuticals revenue growth expectations come in below consensus


Hikma Pharmaceuticals PLC (LON:HIK) said it expects revenue growth across all its segments in 2021, though it will be below consensus.

Injectables and branded revenue is estimated to rise around 5%, while generics is expected to come in at US$770-810mln with core operating margin of around 20%.

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However, analysts’ consensus for generics revenue was US$851mln with margin of 22%.

“We estimate that this implies a mid to high single-digit reduction to our and consensus underlying earnings (EBIT) forecasts for 2021 and high single to low double-digit downgrades to earnings per share,” analysts at Peel Hunt commented.

The pharma giant also forecast capital expenditure of around US$140-160mln.

In the year to December 31, revenue jumped 6% to US$2.3bn, with profit before tax up 12% to US$558mln and core operating margin up to 24.2% from 23.1% the year before.

The dividend was hiked 14% to US$0.50 per share.

The firm leveraged its portfolio to meet increased demand for essential medicines used in the treatment of COVID-19, while also expanding it with the launch of 154 new products.

It also received US approval for generic asthma treatment Advair Diskus and expects to resume launch as soon as the authorities complete their priority review.

Shares shed 4% to 2,318.43p on Thursday at the opening bell.


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