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Consistent Growth and Expanded Market Reach Highlight Early Success; Final Dividend Announced

London, UK— This Thursday, Hikma Pharmaceuticals PLC provided a trading update in advance of its Annual General Meeting, detailing a promising start to the year. Supported by its three core business segments, the company is on track to meet its full-year revenue growth targets of 4% to 6% and core operating profits between $660 million and $700 million.

Injectables Division Excels with New Product Launches and Market Expansions
The Injectables business has shown impressive early performance, particularly in the US, where a diverse product range and new high-speed filling lines have captured fresh market opportunities. In Europe, strong demand for Hikma’s products has been noted, alongside successful expansions into new markets. The MENA region has also experienced growth, supported by the company’s bio-similar portfolio and recent product launches. The Injectables division is projected to see revenue growth of 6% to 8% in 2024, with a core operating margin of 36% to 37%.

Branded Products Gain Momentum, Strengthen Market Position
Hikma’s branded products division has built on recent successes, driven by a growing product portfolio and solid commercial execution in the MENA region. This division has seen strong demand, particularly for oncology medicines and chronic illness treatments, reinforcing Hikma’s status as the second-largest pharmaceutical company in MENA by sales. For 2024, Hikma expects Branded revenue to grow in the mid- to high-single digits on a constant currency basis, with slight growth in reported core operating profit

Generics Business Thrives Under New Leadership
The Generics business has performed robustly, benefiting from a broad product portfolio and recent launches. Hikma is enhancing its focus on building a differentiated portfolio and pipeline, supported by its facility in Columbus, Ohio. Hafrun Fridriksdottir, with 25 years of industry experience, has recently been appointed as President of the Generics business, and is expected to help drive its next growth phase. Revenue growth for this segment is anticipated to be between 3% and 5% in 2024, with core operating margins in the mid-teens.

Subject to approval at today’s AGM, Hikma will issue a final dividend of 47 cents per share, bringing the total 2023 dividend to 72 cents per share—a 29% increase over 2022. This reflects a payout ratio of approximately 32%, higher than the historical range of 20% to 30%. The company plans to progressively increase its dividend payout ratio to 30% to 40%, underscoring its confidence in long-term growth prospects and commitment to shareholder returns.

Hikma Pharmaceuticals will announce its interim results for the six months ending June 30, 2024, on August 8, 2024, where more detailed insights into the company’s financial and operational progress will be shared.

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