Good performance in Injectables and Branded partially offset competitive pressures in Generics. All three businesses set to grow in 2023.
Hikma Pharmaceuticals PLC (‘Hikma’ or ‘Group’), the multinational pharmaceutical company, today reports its preliminary audited results for the year ended 31 December 2022.
In 2022, the Group reported revenue of $2.517 billion (slightly down from $2.553 billion in 2021), backed by its resilient business model and good performance from the Injectables and Branded businesses, and offset by the effect of severe competitive pressures in the Generics business in the US and foreign exchange headwinds in the MENA region.
Benefitting from the Group’s healthy balance sheet, Hikma continued to invest 6% of revenue in R&D, supporting a growing pipeline of complex and specialty products. During 2022, Hikma had 182 new launches and received 270 approvals. To ensure the continuous development of the Group’s product pipeline, Hikma submitted 349 regulatory filings during the year.
Injectables business revenue up 8% in 2022, 10% in constant currency, to $1.141 billion ($1.053 billion in 2021), driven by acquisitions, new product launches and expansion into new geographies and partnerships. Injectables core operating profit increased by 8% with a core operating margin of 37.5%.
During the year, we successfully completed and integrated the acquisitions of Custopharm Inc. in the US and Teligent’s assets in Canada, and signed further deals for our growing biosimilar portfolio in MENA, including for ustekinumab and Vegzelma® with Celltrion Healthcare as their exclusive partner in the region. In 2023, the Injectables business expects mid to high-single digit revenue growth in the range of 7% to 9%, with core operating margin in the range of 36% to 37%.
Our Branded business revenue grew 3% in 2022, 7% in constant currency, to $691 million ($669 million in 2021), reflecting a good contribution across most markets which offset hyperinflation and foreign exchange headwinds. Continued product mix improvements drove core operating profit growth of 17% and a core operating margin of 21.1%.
The Branded business continued to benefit from tiering structure and strong contribution from high-value chronic medications, with ongoing opportunities to grow market share. Hikma is now the third largest pharmaceutical company in the MENA by sales1, up from fourth largest in 2021. In 2023, Branded revenue growth is expected in the mid to high-single-digits in constant currency.
Revenue in the Generics business was down 18% in 2022 to $672 million ($820 million in 2021), driven by significant price and volume erosion, introduction of fewer new products and a slower than expected ramp-up of recent launches during the year. Generics core operating profit declined to $103 million and core operating margin was 15.3%. In 2023, Generics revenue growth is expected in the low double-digits with core operating margin in the range of 16% to 18%.
Said Darwazah, Executive Chairman and Chief Executive Officer of Hikma, said: “Hikma’s diversified business model has enabled our core underlying business to deliver a resilient performance in 2022. Our Injectables and Branded businesses performed well, helping to partially offset the decline in Generics. In Injectables, we have leveraged our best-in-class manufacturing capabilities, flexibility and efficiency to serve our customers, while investing in R&D to strengthen an increasingly differentiated pipeline of products. In Branded, we have again grown market share, focusing on chronic disease areas, further cementing our position as one of the leading pharmaceutical companies in the MENA region. While our Generics business has been impacted by industry-wide competitive pressures, we have focused on controlling our costs, driving efficiencies and building our specialty portfolio, which will support the outlook for this business going forward.”
He added: “Looking ahead, we are confident that we will deliver good growth across all three of our businesses in 2023 as we continue to expand our product portfolio and enhance our manufacturing and commercial footprint.”
Hikma was founded 45 years ago to increase access to affordable medicines. As the Group continues to grow, we strive to deliver on our purpose of putting better health within reach, every day, by making medicines more accessible and more affordable for millions of people around the world.
Hikma helps put better health within reach every day for millions of people around the world. For more than 40 years, we've been creating high-quality medicines and making them accessible to the people who need them.
Source1: IQVIA Midas MAT September 2022 for Algeria, Egypt, Jordan, Kuwait, Lebanon, Morocco, Saudi Arabia, Tunisia, UAE. USD sales
Hikma Pharmaceuticals PLC
Senior Director, MENA Communications