In This Article:
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Hikma Pharmaceuticals PLC (HKMPF) achieved a group core revenue growth of 10% in 2024, surpassing their upgraded guidance of 6% to 8%.
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The company delivered a core operating profit of $719 million, aligning with their guidance despite challenges in the Generic business.
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Hikma Pharmaceuticals PLC (HKMPF) launched 132 products across the business in 2024, including the first approved ANDA for GLP-1 referencing Victoza in the US.
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The company is investing in expanding its manufacturing capacity and capabilities, with new plants in Morocco and Algeria expected to be operational by 2026.
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Hikma Pharmaceuticals PLC (HKMPF) is focusing on strategic investments, including the acquisition of Xellia's US assets and R&D center, to enhance their pipeline and market presence.
Negative Points
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The Generic business faced profit headwinds due to increased royalties on their authorized generic of sodium oxybate.
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Injectable core operating margin contracted to 35.3% from 36.9% in 2023, partly due to the slightly dilutive impact of the Xellia acquisition.
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The company expects Generic revenue to be broadly flat in 2025, with price erosion impacting the base business.
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Hikma Pharmaceuticals PLC (HKMPF) plans to increase R&D spending by 20% in 2025, which may impact short-term profitability.
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The company's total debt increased to $1.3 billion due to the Xellia acquisition, affecting their net debt to core EBITDA ratio.
Q & A Highlights
Q: Can you elaborate on the strategic focus for the Injectable business over the next few years? A: Riad Mishlawi, CEO, explained that the Injectable business is at an exciting stage with initiatives across all geographies. The focus will be on integrating Xellia's assets, optimizing the Bedford manufacturing facility, and enhancing the Zagreb R&D center. Key launches include reformulated vancomycin ready-to-use products and long-acting injectable suspensions in the US. The aim is to become a market leader in ready-to-use formulations by 2029.
Q: What are the expectations for the Branded business moving forward? A: Riad Mishlawi highlighted that the Branded business is gaining momentum, focusing on expanding the pipeline of oncology products and treatments for chronic illnesses. The strategy includes launching first-to-market products like finasteride and Bismuth combination, targeting new therapy areas such as GLP-1s and metastatic breast cancer, and enhancing manufacturing capabilities in key regions.