Hikma Pharmaceuticals PLC on Thursday reiterated annual guidance for all three of its businesses, continuing to expect them to underperform against 2021 due to rising costs.

Hikma is a London-based pharmaceutical company with a focus on generics.

‘We are seeing strong momentum in our Branded and Injectables businesses, reflecting the benefits of their increasingly broad and differentiated product portfolios, leading market positions and our flexible high-quality manufacturing footprint,’ said Executive Chair & Chief Executive Officer Said Darwazah.

It noted the US generic market remains competitive. Generics business is performing in line with previous 2022 guidance of $650 million to $675 million, falling at least 18% from $820 million in 2021. Further, Hikma expects the core operating margin for Generics to fall to between 15% and 16% from 25% in 2021.

Hikma noted the impact of inflation on costs, and now expects a core net finance expense of $74 million, 35% higher than $55 million in 2021, and an 8.8% increase from its previous guidance of $68 million.

Hikma will release its 2022 results on February 23.

The search for a new CEO remains on track, it added.

Hikma Pharmaceuticals shares were 4.7% higher at 1,343.00 pence each on Thursday morning in London.

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