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Highlights

  • Berenberg analyst Victoria Lambert reiterates Buy rating on Hikma Pharmaceuticals.

  • Target price set at AUD 52.75, implying 46.29% upside from current levels.

  • Outlook supported by growth in Injectables and MENA market share.

  • Analyst sees potential from recent product launches and strategic acquisitions.

Hikma Pharmaceuticals PLC (LSE: HIK.L), the multinational pharmaceutical group headquartered in the United Kingdom, has received a fresh endorsement from equity research house Berenberg. Analyst Victoria Lambert has reaffirmed her Buy recommendation on the stock, assigning a price target of AUD 52.75 — representing a significant 46.29% potential upside from the current trading price.

This latest analyst update might follow the release of Hikma’s Interim Results for the first half of 2025, in which the company delivered a 6% increase in group revenue.

Berenberg’s Investment View

Lambert’s positive stance on Hikma reflects confidence in the company’s robust pipeline, growing market share in the Middle East and North Africa (MENA), and its recent strategic acquisitions. The integration of Xellia’s portfolio and the launch of multiple new products — including US FDA-approved TYZAVAN™ and ustekinumab biosimilar, expected to boost Hikma’s revenue base in the second half of the year.

H1 2025 Performance Drivers

The company’s Injectables business saw a 12% revenue increase, powered by growth in Europe (+26%), MENA (+16%), and North America (+8%). This segment benefited from new launches, improved supply chain performance, and the contribution of the acquired Xellia portfolio.

Branded products also delivered 4% revenue growth in MENA, while the Hikma Rx segment experienced a slight 1% decline — as expected — due to product lifecycle timing, though its differentiated portfolio maintained significant demand.

While core operating profit for the group fell by 7% in the first half, Hikma maintains full-year guidance of 4–6% revenue growth and core operating profit between USD 730–770 million. Lambert believes the second half will benefit from cost phasing and higher-margin product sales.

Strategic Investments & US Manufacturing Expansion

Hikma continues to increase its R&D investment, which was up 20% year-on-year in H1 2025, to accelerate pipeline development. Additionally, the company is committing USD 1 billion by 2030 to expand its US manufacturing and R&D footprint.

With a Buy rating from Berenberg and a compelling upside potential, Hikma Pharmaceuticals enters the second half of 2025 with investor confidence.