Hikma Pharmaceuticals PLC (‘Hikma’ or ‘Group’), the multinational pharmaceutical company, today reports its preliminary audited results for the year ended 31 December 2021.
In 2021, group revenue grew 9% to $2.553 billion ($2.341 Billion in 2020), reflecting a good performance from all three businesses. Benefiting from the group’s healthy balance sheet and its strong cash flow from operating activities, Hikma continued to invest 6% of revenue in R&D, with a growing pipeline of complex and specialty products.
Injectables revenue grew 8% in 2021 to $1.053 billion ($977 million in 2020), benefitting from our broad portfolio, geographic spread, flexible manufacturing capabilities and new launches across our regions. MENA Injectables revenue was up 13% on a reported basis and 4% on a constant currency basis. This growth reflects a strong performance across most of our markets and good demand for our growing biosimilar portfolio where we continue to grow the market by increasing patient access. This more than offset temporary disruption in some markets.
During the year, the Injectables business launched 15 products in the US, 29 in MENA, and 34 in Europe. We submitted 93 filings to regulatory authorities across all markets. In 2022, we expect Injectables revenue growth in the low- to mid-single digits.
The good revenue growth in our Generics business, up 10% in 2021 to $820 million ($744 million in 2020), was primarily driven by a strong performance from recently launched products, which more than offset increased price erosion. In 2021, the Generics business launched seven products and submitted five files to regulatory authorities. In 2022, we expect Generics revenue growth in the range of 8% to 10%.
Our Branded business continued to deliver growth in 2021, with revenue up 9% to $699 million ($613 million in 2020), which includes the impact of hyperinflation. In constant currency, revenue grew 5%, with good performance across our markets, particularly in Algeria, where we saw the benefits of our new oncology plant, and in Egypt, where we benefitted from strong demand for our chronic treatments. Our chronic treatments also saw good demand in our retail business in Saudi Arabia, which partially offset lower demand in the government tender business. Other markets, including Jordan, UAE, and Morocco grew strongly. Across the region, we benefitted from our focussed commercial efforts, a responsive supply chain, and the breadth of our portfolio.
During the year, the Branded business launched 87 products and submitted 144 filings to regulatory authorities. Branded revenue is expected to be in line with 2021. Excluding the impact of hyperinflation in 2021, Branded revenue is expected to grow in the mid-single digits in 2022.
Hikma is further expanding its portfolio and increasing investment to support growth in 2022. Hikma launched generic Advair Diskus® in April 2021 and is gradually growing market share, but expects competition to intensify in 2022. Hikma also expanded its specialty product offerings in the US, including the launch of KloxxadoTM 8mg naloxone nasal spray. Additionally, the group is positioning for future growth in Injectables with the signing of two US biosimilar agreements, the acquisition of Custopharm, the launch of a new US compounding business, and post year-end expansion into Canada through the acquisition of Teligent assets. Further complex medicines were also added to the Branded portfolio, including eight oral oncology products in Algeria.
Hikma is announcing a share buyback programme of $300 million to be executed during 2022. Hikma’s strategic focus remains unchanged, prioritising the creation of further shareholder value through investing in organic and inorganic growth. The buyback reflects the Group’s strong cash generation, balance sheet strength and the Board’s confidence in the future growth prospects of the business. The buyback has been sized to maintain balance sheet efficiency, whilst leaving significant headroom for continued investment opportunities.
Hikma is also announcing a new environmental target to reduce its greenhouse gas emissions by 25% by 2030.
Siggi Olafsson, Chief Executive Officer of Hikma, said: “Hikma delivered strong financial results in 2021, marking another successful year of solid growth and continued strategic momentum. Our operational strength and high-quality standards ensured our ability to provide customers with a consistent supply of essential medicines in a challenging environment. I am grateful to Hikma colleagues around the world for their steadfast commitment to helping the millions of patients who rely on our medicines every day.”
He added: “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 KloxxadoTM and generic Advair Diskus® in 2021, with additional product launches planned for this year. Our Branded business has delivered 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.”