London, 3 November 2022 – Hikma Pharmaceuticals PLC (Hikma, Group), the multinational pharmaceutical group, today provides an update on current trading.

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Said Darwazah, Executive Chairman and Chief Executive Officer of Hikma, said:

“I am pleased to reiterate full yearguidance for all three of our businesses. We are seeing strong momentum in our Branded and Injectables businesses, reflecting the benefits of their increasingly broad and differentiated product portfolios, leading market positions and ourflexible high-quality manufacturing footprint. Whilethe US generics market continues to be competitive, our Generics business is performing in line with the guidance we set out at our interim results and we continue to expect this business to grow in 2023.”

Injectables

Our global Injectables business isperformingwell, maintaining the positive momentum seen in the first half.In the US, we aredelivering strong growth, benefitting from ourbroad and growing portfolio of over 130 products, new launches and a good contribution from the newly acquired Custopharmportfolio.

In Europe and Rest of World, we are benefitting fromstrong demand for our products, particularly in Germanywhere we are responding to market shortages.Canadais also performing well following the acquisition of Teligent’sCanadian assets earlier in the year. In MENA, we are seeing good demand across most of our markets, with particularly strong growth in Saudi Arabia, driven by our biosimilar products and successful new launches.

We arealso making good strategic progress across our Injectables business.In the US, we have launched nine new products since the beginning of the year and have good momentum in the establishment of our compounding business. In MENA, we continue to benefit from our strong local presence and are strengtheningour manufacturing capabilities in Egypt, Algeria andMorocco.

For the full year, wecontinue to expectInjectables revenue growthin themid tohigh-single digitsand now expect to be at the top endof our core operating margin guidance of 36% to 37%.

Branded

Our Branded business is performing well. We arebenefitting from an increasingly diversified portfolio of high value products focusing on chronic illnesses.Our tier one markets, particularly Algeria and Egypt, are performing strongly on a constant currency basis. Other markets such as Morocco and Iraq are also performing well.

Our focus on buildinga portfolio of chronic treatments, as well as our ability to leverage our global capabilities and operate locally across MENA,continues to drive momentum in our underlying business.In Saudi Arabia, we are benefitting from commercial improvements, enabling us to focus our promotional efforts on key therapeutic areas such as respiratory and diabetes, where we are gaining market share. We are also gaining market share inAlgeria, where we are benefitting from strong growth in our oral oncology portfolio.

We continue to expect full year Branded revenue to grow in the low single–digits on a reported basis, despite currency devaluations in our North African markets, particularly Egypt. On a constant currency basis, we expect Branded revenue to grow in the mid–single digits. We continue to expect core operating profit to be more evenly split across the year.

Generics

Theoutlook for our Generics business remains unchanged since we updated the market in August.  While we continue to seelow double–digit price erosion and mid-single digit volume erosion in the US, our actionsto reduce costs and improve efficiencies, in combination with our strong customer relationships and broad portfolio, are enabling us to maintain a healthycore operating margin in the mid-teens. We continue to focus on building a diversified product portfolio ofdifferentiated generics and specialty products, and areleveraging our manufacturing facility for more contract manufacturing opportunities, which will help improve the resilience of this business.

For the full year, wecontinue to expectGenerics revenue to be in therange of $650 million to $675 million and core operating margin to be between 15% to 16%.  

Impact of inflation and interest rates on the Group

We are increasingly seeing the effects of the global inflationary environment on costs, as expectedwhen we announced our interim results. We have been managing this through tight control of costs and a focus onoperating efficiencies.These impacts are reflected in ourguidance.

Due to increasing interest rates, we now expect core net finance expense to be around $74 million, compared to our previous guidance of around $68 million.

Board evolution and CEO search

Since August, we have appointed three new independent non-executive directors to the Board.  Laura Balan, Victoria Hull and DeneenVojta collectively bring a wealth of experience covering the US and global healthcareindustries and the UK capital markets. We now have 45% female representation on the Board.

The search for a new CEO remains on trackand an update will be provided when an appointment is made.

We will announce our preliminary results for the yearended 31December 2022 on 23 February 2023.

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Enquiries:

Hikma (Investors)​​​​​​

About Hikma

Hikma Pharmaceuticals PLC (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY) (LEI:549300BNS685UXH4JI75)(rated BBB-/stable S&Pand BBB-/stable Fitch)

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. Headquartered in the UK, we are a global company with a local presence acrossNorth America, the Middle Eastand North Africa (MENA) and Europe, and we use our unique insight and expertise to transform cutting-edge science into innovative solutions that transform people’s lives. We’re committed to our customers, and the people they care for, and by thinking creatively and acting practically, we provide them with a broad range of branded and non-branded generic medicines. Together, our 8,700 colleagues are helping to shape a healthier world that enriches all our communities. We are a leading licensing partner, and through our venture capital arm, are helping bring innovative health technologies to people around the world. For more information, please visit: www.hikma.com

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