Hikma warns of slower growth, shares plunge

(Sharecast News) - Shares in Hikma Pharmaceuticals tumbled on Thursday, after the generics drugmaker withdrew its medium-term guidance and adopted a cautious outlook for the current year. The group posted a 5% uplift in core revenues to $3.35bn in the year to December end, and a 3% improvement in core operating profit at $741m.

Growth was driven by strong performances in its branded and Hikma Rx businesses, which helped offset more challenging trading in injectables, which has been hit by margin pressure and increased competition in the US.

However, looking to the 2026 full year, and Hikma forecast weaker sales growth across all divisions, with group-wide sales growth expected to come in between 2% and 4%.

Core operating profit was predicted to come in between $720m and $770m - below consensus - while medium-term guidance was withdrawn.

As at 0900 GMT, the blue chip had tumbled 17% to 1,376p.

Medium-term guidance was withdrawn following a strategic review, which focused in particular on the hard-pressed injectables business.

It was led by Said Darwazah, Hikma's former executive chair. Darwazah became chief executive on an interim basis in December, after former incumbent Riad Mishlawi stepped down, and on Thursday confirmed he would now take on the role on a permanent basis for the next two years, relinquishing his executive chairmanship.

Darwazah said: "While our injectables business has experienced some challenges, we are taking clear steps to address these and are confident in the longer-term prospects for this business.

"We are confident in the guidance we have set for 2026, which assumes continued strong momentum in branded and Hikma Rx, and increased investment in injectables.

"Our focus is on delivering sustainable profit growth. I remain optimistic for the future."

Senior independent director Victoria Hull has been named chair.