(Sharecast News) - Drugmaker Hikma Pharmaceuticals trimmed revenue guidance for its injectables division on Thursday, offsetting a more upbeat outlook for its branded business.
Hikma now expects injectables revenue to be broadly flat in 2026, compared with previous guidance for low single-digit growth, although it maintained expectations for a core operating margin of 27% to 28%.
The FTSE 100-listed company also said good demand across the US, Europe, Canada and the Middle East and North Africa was being largely offset by pricing pressure, lower contract manufacturing revenues and earlier supply chain disruptions.
Elsewhere, Hikma upgraded its outlook for its branded division after strong trading across its core MENA markets, with the company now expecting branded revenue growth of around 10% this year, up from previous guidance of 6% to 8%, while core operating margins were forecast to be close to 27%, compared with earlier guidance of around 25%.
Hikma's Rx generics business also continued to perform well, supported by strong demand for sodium oxybate and improving profitability.
For the group as a whole, Hikma reiterated guidance for revenue growth of 2% to 4% in 2026 and narrowed its operating profit outlook to $740m to $760m from a previous range of $720m to $770m.
Hikma also confirmed that chief financial officer-designate Becky Hall will join the group on 8 March 2027.
Chief executive Said Darwazah said: "We are seeing strong momentum at Hikma, delivering on the commitments we made at the beginning of the year. The group's performance year-to-date is in line with our expectations, reflecting the strength of our diversified business. Branded is outperforming, profitability in Hikma Rx is improving, and injectables is stabilising, well positioned for future growth.
"We have expanded our portfolio and pipeline through new launches and an increased investment in R&D. Reflecting this performance and our expectations for trading as we close the year, we are pleased to narrow our expected group operating profit range to $740m to $760m."
As of 1145 GMT, Hikma shares were down 1.87% at 1,729p.
Reporting by Iain Gilbert at Sharecast.com
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