Hikma Pharmaceuticals PLC

Hikma reported that sales were up, EBIT and EBITDA were up by almost 8%, and EPS was up by 5%. Management said first-half sales were 55% weighted and EBIT is more weighted to the second half, while the group’s revenue guidance remains 2% to 4% for the full year and operating profit guidance remains $720 million to $770 million. They also said the full-year outlook is being held despite higher second-half R&D and promotion spending, with branded expected to be lower in H2 and injectables and CMO helping offset that.

Said Darwazah said the quarter showed Hikma had achieved its goal of stabilizing injectables, making the company more agile, and investing for the future. He emphasized that the company’s three-business model remains a strength, with MENA doing extremely well, Rx delivering strong margins, and injectables expected to start growing profitability next year. His tone was confident but cautious on the second half, citing regional uncertainty and the need to keep investing in capacity, people, and R&D.

Areb Al Kurdi said H1 sales were 55% weighted, with more EBIT expected in H2, and noted that the company is still absorbing inflation while maintaining margins. He said H2 will include more sales and marketing events that were postponed earlier, as well as higher investment in R&D and promotion, which is why management is not raising guidance. On capital allocation, he said the buyback is almost finished with about $20 million left and about $230 million already completed, while the 503B business is classified as held for sale and expected to be sold within 12 months, likely sooner.

Analysts focused on why Hikma is not raising guidance despite strong first-half results, the second-half ramp in TYZAVAN and injectables, CMO visibility, inflation, tariffs, and the compounding exit. Management said H1 benefited from tender timing and temporary stockpiling, while H2 will carry more cost and branded revenue/profit will be lower, offset by injectables and CMO. On tariffs, management said Hikma is well positioned because most U.S. products are made domestically, and on the 503B sale they said the process is active, the business was a distraction and loss-making, and interest has been good.