Hikma Pharmaceuticals Plc (LSE: HIK) has issued a trading update confirming its full-year 2026 Group guidance, narrowing its expected Group operating profit range to $740 million to $760 million from a previous range of $720 million to $770 million. The multinational pharmaceutical group, headquartered in the UK with operations across North America, MENA and Europe, also upgraded its Branded revenue growth forecast to around 10%, up from prior guidance of 6% to 8%. The update signals continued momentum across the business ahead of the year-end close, with investors likely to focus on the improved margin outlook in the Branded division and stabilisation within Injectables.

Key Points

  • Hikma Pharmaceuticals Plc (LSE: HIK)
  • Group operating profit guidance narrowed to $740m–$760m; full-year revenue growth guidance of 2%–4% reiterated
  • Branded revenue growth upgraded to approximately 10%; core operating margin now expected at close to 27%, up from around 25%
  • Investors should watch the ramp-up of Hikma Rx contract manufacturing into commercial production in 2027 and the FDA outcome for epinephrine nasal spray

Hikma Upgrades Branded Revenue Growth Forecast to Around 10% With Improved Margin

Hikma's Branded division, which the company describes as the largest pharmaceutical business by sales in the MENA region, is the standout performer in this update. The company has upgraded its Branded revenue growth expectation to around 10% for 2026, compared with the previous guidance of 6% to 8%. Core operating margin for the division is now expected to reach close to 27%, up from an earlier estimate of around 25%. The announcement attributes this improvement to strong demand across its markets, a favourable product mix, and portfolio expansion through new launches and partnerships, with a particular focus on cardiovascular, diabetes and CNS medications.

Injectables Revenue Now Expected Broadly Flat as Tyzavan Progress Offsets Price Erosion

Hikma's global Injectables business has seen its revenue guidance revised to broadly flat for 2026, compared with a previous expectation of low single-digit growth. In the US, the announcement states that good demand for the base business and gradual progress in Tyzavan® sales are mostly offsetting price erosion. Performance in Europe and Canada has been supported by market share gains and responses to critical shortages. In MENA, strong demand from the biosimilar and oncology portfolio is offsetting supply chain disruptions linked to manufacturing challenges at one of the company's in-licensing partners. Core operating margin for Injectables is still expected in the range of 27% to 28%.

Hikma Rx Profitability Improves as FDA Accepts US Filing for Epinephrine Nasal Spray

The Hikma Rx division is delivering a significant improvement in profitability, with core operating margin expected at close to 20% and revenue broadly flat for 2026. Strong demand for sodium oxybate and revenue from the preparation phase of a key contract manufacturing agreement are cited as key contributors. Eight new products have been launched year-to-date, with further launches anticipated before year-end and into 2027. Notably, the US FDA accepted the filing for Hikma's epinephrine nasal spray in September; the product has also been filed in multiple other markets, with outcomes expected to be communicated in 2027.

$250m Share Buyback Completed and Incoming CFO Becky Hall Confirmed for March 2027

Hikma confirmed the completion of its $250 million share repurchase programme, originally announced on 26 February 2026. A total of 13,138,823 shares were purchased, leaving issued share capital at 208,747,630 ordinary shares of 10 pence each. Separately, the company confirmed that Becky Hall, appointed as CFO designate in September, will join Hikma on 8 March 2027. CEO Said Darwazah stated in the announcement that the Group's performance year-to-date is in line with expectations, reflecting the strength of its diversified business across branded, injectable and Rx segments.