Hikma Pharmaceuticals Raises Profit Floor as Branded Growth Offsets Injectables Slowdown

Key Points

• Hikma maintained its 2026 revenue growth outlook of 2% to 4% but raised the floor of core operating profit guidance to $740 million, from $720 million, with a new range of $740 million to $760 million.
• Stronger Branded performance led Hikma to raise its 2026 segment revenue growth forecast to around 10% from 6% to 8%, and its expected core operating margin to close to 27% from 25%.
• Injectables faced a slower-than-expected TYZAVAN launch as hospitals added the product to formularies, plus about $15 million in supply disruption tied mainly to Pharmathen; Hikma kept its segment margin forecast at 27% to 28%.

Hikma Pharmaceuticals LON: HIK maintained its 2026 revenue growth outlook and narrowed its operating profit guidance as stronger performance in its Branded business helped offset a slower-than-expected rollout of an injectable product.

The company expects group revenue to grow 2% to 4% this year and core operating profit of $740 million to $760 million. The low end of its previous profit range was $720 million, CEO Said Darwazah said on the company’s November trading update call.

Hikma raised its Branded revenue growth forecast to around 10% from 6% to 8% and now expects a core operating margin close to 27%, up from 25%. Darwazah said demand across markets and a favorable product mix contributed to the performance, even as the company increased sales and marketing spending.

Branded Growth Exceeds Expectations

Acting CFO Areb Kurdi described this year’s Branded growth and margins as exceptional. He pointed to a favorable mix of markets and products, including oncology sales and government tenders, rather than a particular one-off benefit.

Looking further ahead, Darwazah indicated Branded revenue growth of 6% to 8%, while Kurdi said the company expected margins a little above 25%. Susan Ringdal, executive vice president of strategic planning and global affairs, said Hikma was comfortable with a margin range of 25% to 26%, although the result would depend on product and market mix.

Darwazah said Hikma would continue investing in local manufacturing and expanding its portfolio toward chronic diseases and oncology. The company still has investment opportunities in Saudi Arabia and is considering Iraq as a potential market for investment, he said.

Injectables Outlook and TYZAVAN

Hikma retained its 2026 Injectables core operating margin forecast of 27% to 28%, despite adjusting its revenue expectations for the segment. Darwazah said the top-line change was mainly due to a slower start for TYZAVAN, which had to be added to hospital formularies as a new product after the company discontinued Vanco Ready.

Sales have picked up in recent months as more customers adopt TYZAVAN, Darwazah said. Kurdi said the product’s progress was slower than initially anticipated but that its growth had gained momentum.

The Injectables business also faced disruption in the Middle East and North Africa from a supplier’s failure to deliver. Kurdi identified Pharmathen as the source of most of the failure-to-supply issue and put the associated amount at around $15 million, with some lost sales as well.

For 2027, Kurdi said Hikma expected modest growth in Injectables revenue and profit. Darwazah said the company was not yet providing formal guidance for the year and hoped MENA margins would recover if penalties did not recur.

Hikma Rx and Manufacturing Contracts

Darwazah said Hikma Rx was improving profitability, supported by strong demand for sodium oxybate, product launches and a gradually expanding contract manufacturing business. Competition remains a factor for parts of the base business, including generic ADVAIR.

Kurdi said Hikma expected Rx profitability next year to be within this year’s range. Contract manufacturing for a major partner could grow more slowly in 2027 than originally budgeted, Darwazah said, with the pace dependent on the partner’s product demand.

Ringdal said Hikma still broadly expected contract manufacturing to offset competition in sodium oxybate and ADVAIR, although the timing of those changes could differ.

Hikma also said the U.S. Food and Drug Administration accepted its filing for an epinephrine nasal spray in September. Darwazah said the product had been filed in several other markets and that the company would provide updates on outcomes in 2027.

About Hikma Pharmaceuticals (LON:HIK)

At Hikma we help put better health within reach, every day. By creating high-quality medicines and making them accessible to the people who need them, we help to shape a healthier world that enriches all our communities. We help deliver this by living our culture, delivering our strategy, and acting responsibly. We are a trusted, reliable partner and dependable source of over 820+ (as of Feb 2026) high-quality generic, specialty and branded pharmaceutical products that hospitals, physicians and pharmacists need to treat their patients across North America, MENA and Europe.

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