Hikma Pharmaceuticals shares down as cuts Injectables outlook

Hikma Pharmaceuticals PLC shares fell on Thursday after the company said it expects lower annual revenue from its Injectables segment, though it has seen an upturn in its Branded business.

The pharmaceutical company's shares dropped 4.1% to 1,690.00 pence in London.

Hikma narrowed its 2026 operating profit guidance to USD740 million to USD760 million, from a previous range of USD720 million to USD770 million. The company maintained its forecast for group revenue growth of 2.0% to 4.0%, adding its year-to-date trading is in line with expectations.

In 2025, revenue amounted to USD3.35 billion. Operating profit totalled USD542 million.

Hikma upgraded its Branded business revenue growth forecast to around 10%, from a 6.0% to 8.0% range, and raised its expected core operating margin to close to 27%, from around 25% predicted previously, reflecting strong demand and a favourable product mix.

The company said the segment, which provides branded generic and in-licensed medicines across the Middle East and North Africa, continued to perform well, driven by new product launches and partnerships, especially in cardiovascular, diabetes, and central nervous system drugs.

Hikma said it increased sales and marketing investment in the second half of the year, as expected.

However, the company lowered its expectations for its Injectables business, which develops, manufactures and supplies injectable medicines to hospitals across North America, Europe and the Middle East & North Africa regions. Hikma now forecasts broadly flat revenue for the segment, compared with previous guidance for low-single-digit growth. It maintained its core operating margin forecast range of 27% to 28%.

Hikma said it made significant investments in Injectables and, while it saw strong demand in the US, Europe and Canada, the business also faced price erosion in the US, an expected decline in contract manufacturing in Europe and Canada. and supply chain disruption earlier in the year that affected the MENA region.

Meanwhile, Hikma Rx, the US business focused on high-quality, differentiated generic and speciality medicines, is expected to deliver broadly flat revenue and core operating margin close to 20%.

Chief Executive Said Darwazah said the group was delivering on its commitments, with improving profitability in Hikma Rx and stabilisation in Injectables.

The company also confirmed that incoming Chief Financial Officer Becky Hall will join on March 8, 2027.

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