Hikma Pharmaceuticals PLC

Management did not give a full set of reported interim numbers beyond saying sales were up, EBIT and EBITDA were up by almost 8%, and EPS was up by 5%. Areb Al Kurdi said H1 was about 55% weighted toward sales, with more EBIT weighted to the second half, and the group reiterated full-year guidance. Specific guidance discussed included revenue growth of 2% to 4% for the year, operating profit of $720 million to $770 million, and the reminder that the branded business is expected to be more second-half weighted even though full-year guidance was unchanged. On the midpoint-related questions, management said CMO Rx is still targeted to reach 20% of Rx revenue by 2030, injectables CMO is expected to be slightly lower this year than last, and the large Rx CMO contract should see a full year of commercial production in 2027.

Said Darwazah framed the quarter as evidence that Hikma’s three-business model is working, with MENA “exemplary,” branded performing well, and injectables stabilized. He emphasized internal restructuring, faster decision-making, and investment in talent, equipment, supply chain, and R&D as the basis for future growth. He also said the company is comfortable reiterating full-year guidance, while cautioning that regional uncertainty makes H2 planning more conservative.

Areb Al Kurdi focused on mix, phasing, and cost absorption. He said H1 sales were around 55% weighted to the first half, while EBIT should be more second-half weighted, and noted that the branded business creates the biggest H2 drop-off even if it ends near the top of range. He also said Hikma absorbed inflation in H1 and expects to continue doing so, while confirming that the 503B compounding business was loss-making and is being unwound and classified as held for sale, with sale expected within 12 months and likely sooner.

Analysts pressed management on why guidance was not raised despite strong H1, and management pointed to heavier second-half spending on R&D, promotion, and hiring, plus caution around the MENA environment and regional uncertainty. Questions also focused on TYZAVAN conversion, where management said adoption is progressing month by month and that the last three months of the year should give a clearer view of 2027. On tariffs and U.S. manufacturing, Hikma said it already has a strong domestic footprint, most U.S. products are made in the U.S., and there is no change to strategy. Management also said the buyback is nearly complete, with about $230 million used and only about $20 million left.