Hikma delivers another year of profitable growth in 2021

London-listed Jordanian drugmaker Hikma Pharmaceuticals (LSE: HIK) today reported its preliminary audited results for the year ended December 31, 2021, describing the year as of profitable growth. However, investors were not that impressed, sending the firm’s shares down more than 8% to 1,849 pence by midday.

Group revenue increased 9% to $2.55 billion, reflecting a good performance from all three businesses, the company said. Core operating profit was up 12% to $632 million, driven by a further step up in Generics margin, but pre-tax profits fell 2.5% to $544 million from $558 million. Basic earnings per share were unchanged at $182.3.

Siggi Olafsson, chief executive of Hikma, said: “As we look to 2022 and beyond, I am most excited about how we are continuing to build and evolve our portfolio with important investments and new partnerships. Our Injectables business is now supplying US hospitals with sterile compounded pharmaceutical products, has expanded into Canada, and is set to grow further with the acquisition of Custopharm and our expansion into US biosimilars. Our Generics business is bringing more complex and specialty products to market, launching Kloxxado and generic Advair Diskus in 2021, and with additional product launches planned for this year. Our Branded business is delivering consistent growth, with an increased focus on medications to treat chronic illnesses. We have an exciting platform that will drive continued growth and progress in the year ahead."