British pharmaceutical company Hikma Pharmaceuticals confirmed Thursday it will stick to its financial targets through 2026, despite experiencing increased costs for shipping, energy, and insurance due to ongoing conflicts in the Middle East.
The drug manufacturer reported a strong beginning to 2024, fueled by high demand for current products and new medication launches across major markets including the United States, France, and Germany.
This announcement brings positive news for CEO Said Darwazah and offers reassurance to investors who had concerns about Hikma’s recovery following ongoing struggles with its injectable medications division and setbacks at a crucial Ohio manufacturing facility that led the company to abandon its medium-term goals in February.
The pharmaceutical firm stated that Middle East demand remains “robust” and that inventory levels are adequate to prevent potential supply chain interruptions from the Iran conflict.
The company markets both its own generic brands and licensed medications throughout the Middle East and North Africa region, which represents approximately one-third of its primary revenue and serves as its second-largest market behind North America. Hikma operates in more than twelve MENA countries, including Iraq, Lebanon, Jordan, the UAE, and Saudi Arabia.
The company maintains its projection for total revenue growth between 2% and 4% and operating profits ranging from $720 million to $770 million by December 2026, with modest single-digit revenue increases expected in its largest injectables division.
Additionally, Hikma announced it will shut down its 503B compounding operations to concentrate on primary business activities. These U.S. facilities produce bulk medications for hospitals and medical facilities under FDA supervision, rather than creating individualized patient treatments.
