Hikma Group Reports Strong Growth In 2023


(MENAFN- Jordan News Agency)


Amman, Feb. 22 (Petra) - The multinational pharmaceutical group "Hikma" unveiled its audited results for 2023, marking a 14 percent revenue growth (15 percent in constant currency) to $2.875 billion, compared to $2.517 billion in 2022.
In a statement Thursday, the group highlighted its commitment to expanding access to high-quality medicines, noting growth across all sectors driven by product launches and strategic partnerships.
Anticipating continued growth, the group forecasts a revenue increase of 4 to 6 percent in 2024, fueled by strategic developments including product portfolio expansion in the Middle East and North Africa region and advancements in product development through exclusive licensing agreements.
Expanding its syringe capacity with new production lines and technologies and bolstering contract manufacturing in the generic medicine sector through new partnerships were key initiatives undertaken by the group.
The acquisition of Akorn for $98 million, along with the cessation of operations in Sudan - which accounted for less than 3 percent of 2022 revenues - incurred losses and costs amounting to $83 million.
Hikma highlighted that the global infusion medicines sector, servicing hospitals across North America, Europe, the Middle East, and North Africa, saw a 6 percent growth in 2023, reaching $1.203 billion, reflecting robust expansion across all regions and compensating for Sudan operations suspension losses.
The group ranks as the third-largest injectable pharmaceutical company in the United States with a portfolio exceeding 150 products.
In the Middle East and North Africa, strong growth was propelled by robust demand across markets, including biosimilars, with expansions into new markets ongoing.
Throughout the past year, the injectable medicines sector witnessed significant product launches: 28 in North America, 25 in the Middle East and North Africa, and 67 in Europe and other regions.
Additionally, Hikma submitted 55 regulatory filings across all markets and expanded its portfolio through new licensing agreements. Looking ahead, Hikma anticipates pharmaceutical sector revenue growth of 6 to 8 percent in 2024.
In the Branded Pharmaceuticals sector, reporting a 3 percent revenue increase and 6 percent in constant currency, revenue reached $714 million in 2023, reflecting strong performance across most markets, making Hikma the second-largest pharmaceutical company in the MENA region.
Robust demand for chronic disease medicines, notably oral oncology treatments, contributed to this growth. The segment launched 32 products and submitted 47 regulatory files in the past year.
Revenue growth for the branded pharmaceutical sector is expected to range from medium to high single-digit percentages in constant currency or low single-digit percentages on a reported basis in 2024.
The Generic Pharmaceuticals sector, catering to the US retail market with oral and specialty non-injectable products, witnessed a remarkable 39 percent revenue growth in 2023, reaching $937 million, attributed to core business sector growth, an improved pricing environment, and a notable contribution from the launch of an approved generic product for sodium oxybate.
Improved product mix drove underlying gross profit growth for generics. In 2023, the generics sector launched 5 products and submitted 5 regulatory filings. Revenue growth for the generics segment in 2024 is anticipated to be between 3 to 5 percent.
Riad Mishlawi, Chief Executive Officer of Hikma, said: "Hikma delivered strong growth and made significant progress in 2023. All three of our businesses grew, delivering double-digit Group revenue and operating profit growth with an impressive core EBITDA margin of 28%.
"Our results demonstrate momentum across each of our three businesses, with new product launches and partnerships continuing to expand our portfolio, including into more complex areas such as oncology," he added.
Hikma, he noted, has a resilient portfolio of diversified global businesses that are expanding to meet growing regional needs for a broad range of essential medicines.
"In 2023 we continued to invest for the future, strengthening our infrastructure and working closely with our customers. We have also evolved our strategy, focusing on execution and leveraging our leading market positions. I am excited about the many growth opportunities across all three of our businesses, which underpin my confidence for the future," he pointed out.

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