Hikma Pharmaceuticals PLC said on Friday that both its Injectables and Branded businesses have performed well at the start of the year but noted its Generics business has experienced some headwinds.

The London-based pharmaceutical company explained that its Generics business has been hurt by increased competition and a challenging pricing environment, resulting in a ‘slow’ start to the year.

Nonetheless, Hikma said it continues to expect full-year Generics revenue growth between 8% to 10%, though it noted this would likely be weighted towards the second half of the year.

Conversely, Hikma reported its Branded business is performing well.

The company said it continues to expect 2022 Branded revenue to be in line with 2021 as it maintains its focus on key therapeutic areas and chronic medications.

Hikma expects Branded revenue to grow in the mid-single digits, excluding the $31 million impact from hyperinflation in 2021.

The Injectables business is performing well, with strength noted in three major geographical regions.

In the US, Hikma said it is a top two supplier of generic injectable medicines by volume. In Europe, the company reported good performance from its own products despite an anticipated reduction in contract manufacturing. In the Middle East and North Africa region, the company reported good demand and a trading performance in line with expectations.

Looking forward, Hikma said it expects full-year global Injectables revenue to grow in the mid to high-single digits, compared with previous guidance of low to mid-single digits.

This guidance upgrade reflects the contribution from Custopharm Inc, a US generic injectables business acquired by Hikma in September.

Chief Executive Siggi Olafsson said: ‘Our acquisition of Custopharm, which closed last week, enhances our [research & development] capabilities and pipeline while further expanding our portfolio of differentiated injectable medicines.

‘More broadly across the group, we are seeing the benefits of our large and diverse portfolio which is helping us to offset increased competition in the Generics business, and underpins our confidence for continued growth this year.’

Hikma will announce its first-half results on August 4.

Shares in Hikma were down 4.9% at 1,930.00 pence on Friday morning in London.

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