Hikma Pharmaceuticals Share Discussion Threads

[broadwood] 17/3/2014 08:44

Still riding high on those results.

[broadwood] 12/3/2014 13:10

Revenue and EPS up 23 and 111 per cent
- Final and special dividend of 13c and 4c
- Growth expected in 2014 despite pullback in generics

Powerful revenue growth from its generic drugs and solid growth elsewhere helped Hikma Pharmaceutical post impressive results for 2013.

Group revenue increased 23% to $1,365m and a 30% strenghtening of operating margins from improvements in the Generics and Injectables businesses helped group profits soar 112% to $212m.

Basic earnings per share similarly leapt 111% to 107.6c per share.

As said Chief Executive Said Darwazah: "The group had an excellent year, with all of our businesses delivering a strong performance and improved profitability."

Net cash flow from operating activities increased by $153m to $337m, as the Generics business delivered 158% revenue growth, primarily from expanding sales of antibiotic doxycycline, and threw off cash as it reversed the previous year's loss with a $127m profit.

Darwazah explained: "This enabled us to cover the costs of remediating our Eatontown facility and further strengthen the group balance sheet as we continue to look at acquisition opportunities across our businesses."

The swollen cash coffers also led to a proposed final dividend of 13c per share, plus a special dividend of 4.0c per share, making a full year dividend of 20.0c per share and a total special dividend for the year of 7.0c per share.

Darwazah added that the FTSE 250 company continued to invest in its product pipeline and focus on operational excellence which he expects will help to sustain future growth.

In the Middle East and North Africa (MENA) region, a focus on improving the product mix, enhancing sales activities and driving manufacturing efficiencies delivered good growth and better profitability.

Of the two largest businesses, Branded business, which is centred the on MENA, grew revenues 5%, while the global Injectables business lifted revenues 14% and continued to perform well, particularly in the US, where Hikma is looking to maximise the potential of its portfolio and further improve margins.

The group reported a good start to 2014 and said it expected to deliver group revenue growth of around 5% this year, despite the anticipated reduction in doxycycline sales hitting anticiptated Generics revenue. Branded should benefit from strong market fundamentals in MENA and investment in the portfolio, while Injectables is expected to accelerate due to its higher value product mix.

Analyst Savvas Neophytou at Panmure Gordon said that uncertainty over the doxycycline franchise implied 2014 will be flat at best.

"That said, other parts of the business are doing exceptionally well, with Injectables now guided to grow up to 20%," he added, while downgrading the stock from 'buy' to 'hold' on valuation grounds

[broadwood] 12/3/2014 11:06

Moving up nicely now.

[broadwood] 12/3/2014 07:37

Hikma to pay special dividend as full-year earnings surge

Hikma Pharmaceuticals said it delivered an excellent performance in 2013 with revenue growth of 23% and EPS up 111%. Profit attributable to shareholders increased by 112% to $212m in the year to end-December. Hikma said it expects continued growth in 2014. Group revenue increased by 23% to $1,365 million, driven by strong underlying growth and doxycycline sales. Group adjusted operating margin rose to 30.3%, up from 17.5%, reflecting significant improvement in Generics and Injectables margins. Profit attributable to shareholders increased by 112% to $212 million. On an adjusted basis, profit attributable to shareholders rose 128% to $274 million. Basic EPS increased 111% to 107.6 cents per share. Net cash flow from operating activities increased by $153 million to $337 million. New product introductions continued across all countries and markets - launched 104 products and received 241 new product approvals.

Proposed final dividend of 13.0 cents per share, plus a special dividend of 4.0 cents per share, making a full year dividend of 20.0 cents per share and a total special dividend for the year of 7.0 cents per share.

Branded · Branded revenue grew 5%, and 8% in constant currency, in line with guidance · Branded adjusted operating profit grew by 9% to $135 million, with a significant improvement in adjusted operating margin, up 100 basis points to 24.4% Injectables · Global Injectablesrevenue increased by 14%, driven by a strong performance in the US, up 23%

· Adjusted operating margin of 31.0%, up from 26.2% in 2012, reflecting pricing improvements, new product launches and operational efficiencies Generics · Generics revenue increased by158% to $268 million, reflecting very strong doxycycline sales · Generics operating profit of $127 million, after remediation-related and other exceptional costs of $39 million

Said Darwazah, CEO, said: "The Group had an excellent year, with all of our businesses delivering a strong performance and improved profitability. In the MENA region, our focus on improving the product mix, enhancing our sales activities and driving manufacturing efficiencies delivered good growth and better profitability. Our global Injectables business continued to perform very well, particularly in the US, where we are maximising the potential of our portfolio and further improving margins. Our continued investment in our product pipeline and focus on operational excellence will help to sustain future growth. Our Generics business delivered very strong revenue, driven primarily by doxycycline, and generated significant cash flow. This enabled us to cover the costs of remediating our Eatontown facility and further strengthen the Group balance sheet as we continue to look at acquisition opportunities across our businesses. Overall, I am very pleased with the results we achieved in 2013 and confident about the prospects -

[broadwood] 12/3/2014 07:08

Very strong finals.

[broadwood] 12/3/2014 06:51

Results up and coming.

[broadwood] 24/2/2014 16:10

Still benefitting from this.

Results 12 March.

Since issuing our Interim Management Statement on 8 November 2013, the Injectables and Generics businesses continued to perform very well and, as a result, Group revenue growth for the full year in 2013 will now be around 23%, ahead of our previous guidance of around 20%

[broadwood] 14/2/2014 09:13

Hikma Pharmaceuticals on Friday reported a strong performance by its Injectables business ahead of the release of its 2013 results next month, which it said would now show a higher-than-expected revenue increase.

The group said revenue for the 12-month period would now be around 23% above the prior year, compared to previous guidance of around 20%.

The Injectables business saw revenue growth of 14% over the year, improving profitability and giving an operating margin of around 30%, driven by a particularly strong performance in the US.

The Generics business is expected to deliver revenue of around $270m for the year after it benefited from strong doxycycline sales, while the Branded business performed in line with expectations, with revenue growth of around 5%.

The adjusted divisional operating margin for the latter was expected to be around 24%, up more than 50 basis points from last year following its decision to cut low margin tender sales, a focus on higher value products and greater emphasis on operational efficiencies.

Looking ahead, the group said: "We are confident that our Injectables business will continue to deliver strong revenue growth and an adjusted operating margin above 30% in 2014."

However, it warned revenue from the Generics business would be lower in 2014 due to increased competition in the US doxycycline market.

[mechanical trader] 14/2/2014 07:59

Should see 1300 pretty quickly.

[broadwood] 14/2/2014 07:06

Just what the doctor ordered.

Since issuing our Interim Management Statement on 8 November 2013, the Injectables and Generics businesses continued to perform very well and, as a result, Group revenue growth for the full year in 2013 will now be around 23%, ahead of our previous guidance of around 20%.

[broadwood] 06/2/2014 14:53

Going nicely again after a quiet period.

[jephron] 02/1/2014 21:20

Very good movement today. UBS upgraded to a buy.

[broadwood] 02/1/2014 15:21

Going very nicely today. Havn't ascertained quite why yet.

Broker upgrade coming probably.

[r ball] 08/12/2013 19:25

sold post results just to realise the gain (and pay for Christmas). story still in place and might buy back in if drops to £11.50 range. any thoughts?

[broadwood] 08/11/2013 07:55

Very. Should continue in a northerly direction.

Hikma Pharmaceuticals' 'injectables; business is delivering an excellent performance and the group is encouraged by the significant opportunities the US market continues to offer.

The group says its financing position remains very strong and will allow it to make further strategic acquisitions and investments, as opportunities arise.

Chief executive Said Darwazah said: "I am very pleased with the performance of the Group. Our Injectables business is delivering an excellent performance and we are encouraged by the significant opportunities the US market continues to offer.

"In our Branded business, we are delivering meaningful margin improvements through the successful execution of our strategy to focus on higher value products and through our focus on operational efficiencies.

"Strong sales of doxycycline in our Generics business continue to benefit the group by enhancing overall cash flows and strengthening our balance sheet. We are confident that we will meet our guidance for 2013 of around 20% revenue growth.

"We are performing well, we have strengthened our businesses across the Group and we are very well positioned to deliver a strong performance in 2014."

[r ball] 07/11/2013 08:07

Results tomorrow. Anybody interested.

[r ball] 30/10/2013 08:19

Very quiet here. Results soon.

[r ball] 22/10/2013 13:08

RB. moving up. bit of a rejig for big pharma in the offing.

[broadwood] 22/8/2013 07:22

Gawd. Do the opposite of Questor. He's usually behind the curve.


Generic drug manufacturer Hikma Pharmaceuticals yesterday announced a strong rise in first-half revenues of 20%to $638m, thanks to sales of its generic antibiotic called doxycycline, while pre-tax profits almost doubled. That came alongside a 17% increase in its interim dividend together with a special dividend, with the remainder of the funds being funnelled towards a reduction in the company's debt levels. Unfortunately, after a strong run – the stock has risen by more than 46% this year – the shares price in much of this good news, trading on a punchy 2014 adjusted earnings multiple of 21 times, so rate a hold for now, Questor says.

[broadwood] 21/8/2013 06:07

Looks like a seriously positive update to me at first glance.