Hikma Pharmaceuticals PLC (‘Hikma’ or ‘Group’), the multinational pharmaceutical company, today reports its preliminary audited results for the year ended 31 December 2020.
Group revenue was $2,341 million in 2020. Group core revenue grew 6% to $2,341 million (2019: $2,203 million), reflecting growth in each of our three businesses.
Injectables core revenue increased by 10% to $977 million (2019: $890 million). In constant currency, Injectables core revenue grew by 9%. While we saw considerable variability in demand for our injectable products over the course of 2020 due to the COVID-19 pandemic, we were able to leverage our broad product portfolio, new launches and the flexibility of our manufacturing operations to meet changing customer needs and drive growth in Injectables revenue and profitability.
MENA Injectables core revenue was $160 million, up 10% on both a reported and constant currency basis (2019: $146 million). This growth reflects an increase in demand for COVID-19 related products and continued growth of our biosimilar products as we increase our market share and continue to launch into new markets.
Generics revenue grew 3% to $744 million (2019: $719 million). A better than expected contribution from new launches, as well as the strength of our differentiated portfolio more than offset an acceleration of price erosion in the second half of the year.
Our Branded business had another good year with revenue of $613 million (2019: $583 million), up 5% on both a reported and constant currency basis. We overcame challenges posed by COVID-19, quickly switching our sales and marketing teams onto virtual platforms and ensuring that our plants across the MENA region could continue to operate safely. Our approach of tiering our markets continued to deliver success, with our Tier 1 countries – Algeria, Saudi Arabia and Egypt – all performing well, especially Algeria, which recovered strongly following a more challenging 2019. We saw a reduction in demand for certain products, including anti-infectives, resulting from the pandemic, this was more than offset by a growth in sales in our broader portfolio.
We maintained a strong cashflow from operating activities whilst maintaining higher inventory levels to ensure continuity of supply during the COVID-19 pandemic. We have also continued investment in R&D constituting 6% of revenue, with a growing pipeline of complex products.
In terms of our ongoing strategic progress, we have leveraged our strong foundation to meet increased demand for essential medicines used in the treatment of COVID-19, whilst continuing to maintain supply across our broader portfolio. We continued to expand our portfolio of differentiated products and launched 154 new products across our markets, including icosapent ethyl capsules, and received US FDA approval for generic Advair Diskus® and expect to resume launch as soon as the US FDA completes their priority review of the outstanding Prior Approval Supplement (PAS). We focused on building a culture of progress and belonging that enables our employees.
Siggi Olafsson, Chief Executive Officer of Hikma, said:
“Thanks to our strong foundation, flexible and high-quality manufacturing capabilities, robust supply chain and the unwavering dedication of our people to our purpose, Hikma was able to play a critical role in the pandemic. We responded rapidly to the changing needs of healthcare providers, supplying essential medicines used to treat COVID-19 patients, while continuing to provide the critical medicines our patients need every day.
Our response to the pandemic demonstrates the resilience of our business, which enabled us to deliver a strong financial performance and continued progress against our longer-term strategic objectives. We achieved good revenue growth in all our businesses and an improvement in core profitability. We expanded our portfolio with successful new launches and new partnership agreements, enhanced our manufacturing capabilities and continued to focus on the development of a more diverse, energised and engaged workforce. These achievements leave us well positioned for future growth and we look forward to continued success in 2021.”
COMMENTS