Hikma Pharmaceuticals (HIK) Trading update summary

FY26 guidance

• FY26 revenue growth guidance maintained at 2%-4%; operating profit range narrowed to $740m-$760m from $720m-$770m.

• Year-to-date performance in line with expectations, with Branded outperforming, Hikma Rx profitability improving and Injectables stabilising.

Branded

• FY26 revenue growth expectation raised from 6%-8% to ~10%; core operating margin expected close to 27%, up from ~25%, despite higher H2 sales and marketing investment.

• Future growth expected in the upper mid-single digits, with margin outlook of 25%-26% depending on product and market mix.

• Strong MENA demand and first-to-market launches support performance; portfolio expansion and local capabilities include investment in Saudi Arabia, with Iraq under consideration.

• Launches and partnerships expanded the portfolio, particularly in cardiovascular, diabetes and CNS medicines.

Injectables

• FY26 revenue expected broadly flat versus prior low-single-digit growth guidance; core operating margin guidance remains 27%-28%.

• US base-business demand and gradual TYZAVAN sales progress mostly offset price erosion; hospital uptake was slow due to formulary inclusion, but conversions are progressing and monthly sales increasing.

• TYZAVAN was the main factor behind the revised top-line outlook; modest top- and bottom-line growth expected in 2027, without a rapid step-up.

• Europe and Canada demand, market-share gains and critical-shortage responses offset expected contract manufacturing decline; MENA demand, biosimilar and oncology products, and launches offset earlier supply disruption.

• Combined Europe and US margins exceed 30%; MENA margins were affected by supplier-related penalties, with Pharmathen-related failure-to-supply amounts of ~$15m and potential additional lost sales.