Latest news with #HikmaPharmaceuticalsPLC
Mid East Info
6 days ago
- Business
- Mid East Info
Fitch upgrades Hikma Pharmaceuticals PLC's long-term issuer default rating to ‘BBB', outlook stable - Middle East Business News and Information
Hikma Pharmaceuticals PLC (Hikma, Company) is pleased to announce that Fitch has upgraded its long-term issuer default rating and the senior unsecured rating on Hikma Finance USA LLC's $500 million notes to 'BBB' from 'BBB-' with a stable outlook. Khalid Nabilsi, CFO of Hikma said: 'I am pleased that now both Fitch and S&P have upgraded Hikma to BBB, reinforcing our investment grade rating. These upgrades are a strong endorsement of our strategic direction, financial discipline, and operational resilience. They underscore Hikma's solid market position across key geographies and reflect confidence in our ability to consistently deliver strong financial results, supported by our diversified business model, robust balance sheet, and prudent capital allocation.' About Hikma: Hikma Pharmaceuticals PLC (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY) (LEI:549300BNS685UXH4JI75) (rated BBB/stable S&P and BBB/stable Fitch) Hikma helps put better health within reach every day for millions of people around the world. For more than 45 years, we've been creating high-quality medicines and making them accessible to the people who need them. Headquartered in the UK, we are a global company with a local presence across North America, the Middle East and North Africa (MENA) and Europe, and we use our unique insight and expertise to transform cutting-edge science into innovative solutions that transform people's lives. We're committed to our customers, and the people they care for, and by thinking creatively and acting practically, we provide them with a broad range of branded and non-branded generic medicines. Together, our 9,500 colleagues are helping to shape a healthier world that enriches all our communities. We are a leading licensing partner, and through our venture capital arm, are helping bring innovative health technologies to people around the world.
Yahoo
16-05-2025
- Business
- Yahoo
Hikma Pharmaceuticals PLC's (LON:HIK) Intrinsic Value Is Potentially 97% Above Its Share Price
The projected fair value for Hikma Pharmaceuticals is UK£41.08 based on 2 Stage Free Cash Flow to Equity Current share price of UK£20.84 suggests Hikma Pharmaceuticals is potentially 49% undervalued Analyst price target for HIK is US$24.82 which is 40% below our fair value estimate Does the May share price for Hikma Pharmaceuticals PLC (LON:HIK) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. Our free stock report includes 1 warning sign investors should be aware of before investing in Hikma Pharmaceuticals. Read for free now. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$386.0m US$435.9m US$461.4m US$480.0m US$522.0m US$546.9m US$568.9m US$588.9m US$607.4m US$625.0m Growth Rate Estimate Source Analyst x5 Analyst x5 Analyst x5 Analyst x2 Analyst x2 Est @ 4.77% Est @ 4.03% Est @ 3.51% Est @ 3.15% Est @ 2.89% Present Value ($, Millions) Discounted @ 6.4% US$363 US$385 US$383 US$374 US$383 US$377 US$368 US$358 US$347 US$336 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$3.7b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.3%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.4%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$625m× (1 + 2.3%) ÷ (6.4%– 2.3%) = US$16b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$16b÷ ( 1 + 6.4%)10= US$8.4b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$12b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of UK£20.8, the company appears quite undervalued at a 49% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Hikma Pharmaceuticals as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.4%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Hikma Pharmaceuticals Strength Earnings growth over the past year exceeded the industry. Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Dividend is low compared to the top 25% of dividend payers in the Pharmaceuticals market. Opportunity Annual revenue is forecast to grow faster than the British market. Good value based on P/E ratio and estimated fair value. Threat Annual earnings are forecast to grow slower than the British market. Although the valuation of a company is important, it ideally won't be the sole piece of analysis you scrutinize for a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. Why is the intrinsic value higher than the current share price? For Hikma Pharmaceuticals, there are three additional factors you should further examine: Risks: For example, we've discovered 1 warning sign for Hikma Pharmaceuticals that you should be aware of before investing here. Future Earnings: How does HIK's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the LSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Mid East Info
24-04-2025
- Business
- Mid East Info
Hikma reiterates full year guidance following good start to the year - Middle East Business News and Information
Amman, Jordan: Hikma Pharmaceuticals PLC (Hikma, Group), the multinational pharmaceutical group, today provides an update on current trading ahead of its Annual General Meeting. Riad Mishlawi, Hikma's CEO, said: 'We are pleased to reiterate our Group guidance for 2025. As a global company with strong local expertise and footprint, we are leveraging our manufacturing proficiency and advanced technologies to meet the needs of our customers and patients across our markets. Looking ahead, and recognising the broader geo-political challenges, we are well-positioned. Our step up in R&D investment, alongside local manufacturing enhancements, and strategic partnerships will continue to strengthen our portfolio and pipeline and ensure sustained success.' Injectables Our global Injectables business is delivering a solid revenue performance, driven by each of our three geographies. We are seeing strong demand for our products across our European and MENA markets, where we continue to launch new products. In North America we are benefitting from good demand for the recently launched liraglutide injection and the contribution from the newly acquired Xellia portfolio. This is helping to offset increased competition across some of our existing higher margin products. We expect momentum to improve in the second half driven by new product launches and contract manufacturing. We are making excellent progress in the enhancements to our Bedford, Ohio facility, which will significantly increase our US-based injectables manufacturing capacity. We continue to expect 2025 Injectables revenue to grow in the range of 7% to 9%. Phasing and mix of sales will impact margins in the first half but we continue to expect full year core operating margin to be in the mid-30s. Branded Our Branded business is performing well. We continue to make good progress in building our diversified portfolio of products used to treat chronic illnesses, with a focus on oncology and lifestyle diseases, supported by our global expertise and strong local market position. Our leading presence in the MENA region, combined with the breadth of our reach and strong commercial capabilities positions us as a partner of choice. We recently signed an exclusive licensing agreement with pharmaand GmbH, a global pharmaceutical business based in Vienna, to commercialise rucaparib, an innovative small-molecule oral oncology therapy, across the MENA region. This is in line with our strategy to be a leading provider of oncology medicines in the region. We continue to expect 2025 Branded revenue to grow in the range of 6% to 7% in constant currency, with core EBIT margin close to 25%. Generics In our Generics business we are seeing solid demand across our differentiated portfolio, particularly for our nasal and inhalation products. By focusing on reliability of supply, high service levels and leveraging our US manufacturing facility, we are successfully securing longer-term customer awards. We continue to strengthen our R&D capabilities, including building a team in our new Zagreb, Croatia R&D centre, and are progressing with key development projects that will help strengthen our portfolio and pipeline for the medium to long-term. We are progressing well preparing our Columbus facility to accommodate our recently announced contract manufacturing partnership, and we are seeing increasing demand for our high-quality US-based manufacturing services. We continue to expect Generics revenue to be broadly flat in 2025 with core operating margin of around 16%. International trade policies We are confident that our significant and expanding US manufacturing footprint, which supplies the majority of our US sales, combined with our focus on quality and reliability of supply, positions us well and underpins our resilience in the current environment. We do import some finished products into the US as well as capital equipment, and we have a diversified global supply chain for our raw and packaging materials, including active pharmaceutical ingredients (API). Full year outlook unchanged We continue to expect Group revenue to grow in the range of 4% to 6% and for core operating profit to be in the range of $730 million to $770 million in 2025. Group core operating profit growth, which is around 4% at the midpoint of guidance, will be weighted to the second half. We are monitoring the evolving tariff backdrop and will look to remain agile in responding to both opportunities and impacts where possible, but have not reflected an impact from tariffs in our full year outlook.
Web Release
24-04-2025
- Business
- Web Release
Hikma reiterates full year guidance following good start to the year
Hikma Pharmaceuticals PLC (Hikma, Group), the multinational pharmaceutical group, today provides an update on current trading ahead of its Annual General Meeting. Riad Mishlawi, Hikma's CEO, said: 'We are pleased to reiterate our Group guidance for 2025. As a global company with strong local expertise and footprint, we are leveraging our manufacturing proficiency and advanced technologies to meet the needs of our customers and patients across our markets. Looking ahead, and recognising the broader geo-political challenges, we are well-positioned. Our step up in R&D investment, alongside local manufacturing enhancements, and strategic partnerships will continue to strengthen our portfolio and pipeline and ensure sustained success.' Injectables Our global Injectables business is delivering a solid revenue performance, driven by each of our three geographies. We are seeing strong demand for our products across our European and MENA markets, where we continue to launch new products. In North America we are benefitting from good demand for the recently launched liraglutide injection and the contribution from the newly acquired Xellia portfolio. This is helping to offset increased competition across some of our existing higher margin products. We expect momentum to improve in the second half driven by new product launches and contract manufacturing. We are making excellent progress in the enhancements to our Bedford, Ohio facility, which will significantly increase our US-based injectables manufacturing capacity. We continue to expect 2025 Injectables revenue to grow in the range of 7% to 9%. Phasing and mix of sales will impact margins in the first half but we continue to expect full year core operating margin to be in the mid-30s. Branded Our Branded business is performing well. We continue to make good progress in building our diversified portfolio of products used to treat chronic illnesses, with a focus on oncology and lifestyle diseases, supported by our global expertise and strong local market position. Our leading presence in the MENA region, combined with the breadth of our reach and strong commercial capabilities positions us as a partner of choice. We recently signed an exclusive licensing agreement with pharmaand GmbH, a global pharmaceutical business based in Vienna, to commercialise rucaparib, an innovative small-molecule oral oncology therapy, across the MENA region. This is in line with our strategy to be a leading provider of oncology medicines in the region. We continue to expect 2025 Branded revenue to grow in the range of 6% to 7% in constant currency, with core EBIT margin close to 25%. Generics In our Generics business we are seeing solid demand across our differentiated portfolio, particularly for our nasal and inhalation products. By focusing on reliability of supply, high service levels and leveraging our US manufacturing facility, we are successfully securing longer-term customer awards. We continue to strengthen our R&D capabilities, including building a team in our new Zagreb, Croatia R&D centre, and are progressing with key development projects that will help strengthen our portfolio and pipeline for the medium to long-term. We are progressing well preparing our Columbus facility to accommodate our recently announced contract manufacturing partnership, and we are seeing increasing demand for our high-quality US-based manufacturing services. We continue to expect Generics revenue to be broadly flat in 2025 with core operating margin of around 16%. International trade policies We are confident that our significant and expanding US manufacturing footprint, which supplies the majority of our US sales, combined with our focus on quality and reliability of supply, positions us well and underpins our resilience in the current environment. We do import some finished products into the US as well as capital equipment, and we have a diversified global supply chain for our raw and packaging materials, including active pharmaceutical ingredients (API). Full year outlook unchanged We continue to expect Group revenue to grow in the range of 4% to 6% and for core operating profit to be in the range of $730 million to $770 million in 2025. Group core operating profit growth, which is around 4% at the midpoint of guidance, will be weighted to the second half. We are monitoring the evolving tariff backdrop and will look to remain agile in responding to both opportunities and impacts where possible, but have not reflected an impact from tariffs in our full year outlook.
Zawya
24-04-2025
- Business
- Zawya
Hikma reiterates full year guidance following good start to the year
Amman, Jordan: Hikma Pharmaceuticals PLC (Hikma, Group), the multinational pharmaceutical group, today provides an update on current trading ahead of its Annual General Meeting. Riad Mishlawi, Hikma's CEO, said: 'We are pleased to reiterate our Group guidance for 2025. As a global company with strong local expertise and footprint, we are leveraging our manufacturing proficiency and advanced technologies to meet the needs of our customers and patients across our markets. Looking ahead, and recognising the broader geo-political challenges, we are well-positioned. Our step up in R&D investment, alongside local manufacturing enhancements, and strategic partnerships will continue to strengthen our portfolio and pipeline and ensure sustained success." Injectables Our global Injectables business is delivering a solid revenue performance, driven by each of our three geographies. We are seeing strong demand for our products across our European and MENA markets, where we continue to launch new products. In North America we are benefitting from good demand for the recently launched liraglutide injection and the contribution from the newly acquired Xellia portfolio. This is helping to offset increased competition across some of our existing higher margin products. We expect momentum to improve in the second half driven by new product launches and contract manufacturing. We are making excellent progress in the enhancements to our Bedford, Ohio facility, which will significantly increase our US-based injectables manufacturing capacity. We continue to expect 2025 Injectables revenue to grow in the range of 7% to 9%. Phasing and mix of sales will impact margins in the first half but we continue to expect full year core operating margin to be in the mid-30s. Branded Our Branded business is performing well. We continue to make good progress in building our diversified portfolio of products used to treat chronic illnesses, with a focus on oncology and lifestyle diseases, supported by our global expertise and strong local market position. Our leading presence in the MENA region, combined with the breadth of our reach and strong commercial capabilities positions us as a partner of choice. We recently signed an exclusive licensing agreement with pharmaand GmbH, a global pharmaceutical business based in Vienna, to commercialise rucaparib, an innovative small-molecule oral oncology therapy, across the MENA region. This is in line with our strategy to be a leading provider of oncology medicines in the region. We continue to expect 2025 Branded revenue to grow in the range of 6% to 7% in constant currency, with core EBIT margin close to 25%. Generics In our Generics business we are seeing solid demand across our differentiated portfolio, particularly for our nasal and inhalation products. By focusing on reliability of supply, high service levels and leveraging our US manufacturing facility, we are successfully securing longer-term customer awards. We continue to strengthen our R&D capabilities, including building a team in our new Zagreb, Croatia R&D centre, and are progressing with key development projects that will help strengthen our portfolio and pipeline for the medium to long-term. We are progressing well preparing our Columbus facility to accommodate our recently announced contract manufacturing partnership, and we are seeing increasing demand for our high-quality US-based manufacturing services. We continue to expect Generics revenue to be broadly flat in 2025 with core operating margin of around 16%. International trade policies We are confident that our significant and expanding US manufacturing footprint, which supplies the majority of our US sales, combined with our focus on quality and reliability of supply, positions us well and underpins our resilience in the current environment. We do import some finished products into the US as well as capital equipment, and we have a diversified global supply chain for our raw and packaging materials, including active pharmaceutical ingredients (API). Full year outlook unchanged We continue to expect Group revenue to grow in the range of 4% to 6% and for core operating profit to be in the range of $730 million to $770 million in 2025. Group core operating profit growth, which is around 4% at the midpoint of guidance, will be weighted to the second half. We are monitoring the evolving tariff backdrop and will look to remain agile in responding to both opportunities and impacts where possible, but have not reflected an impact from tariffs in our full year outlook. About Hikma Hikma helps put better health within reach every day for millions of people around the world. For more than 45 years, we've been creating high-quality medicines and making them accessible to the people who need them. Headquartered in the UK, we are a global company with a local presence across North America, the MENA and Europe, and we use our unique insight and expertise to transform cutting-edge science into innovative solutions that transform people's lives. We're committed to our customers, and the people they care for, and by thinking creatively and acting practically, we provide them with a broad range of branded and non-branded generic medicines. Together, our 9,500 colleagues are helping to shape a healthier world that enriches all our communities. We are a leading licensing partner, and through our venture capital arm, are helping bring innovative health technologies to people around the world. For more information, please visit: *Source: AETOSWire
