Hikma Pharmaceuticals PLC

Good morning, all, and thank you for joining us for the HICMA Interim Results Call. My name is Carly, and I'll be coordinating the call today. During the presentation, you can register a question by pressing star followed by one on your telephone keypad, and to remove yourself from that line of questioning, please press star followed by two. I'll now hand over to Riyad Mishlawi, CEO, to begin.

Okay, good morning, everyone. It's always great to sit in front of you, and we have good results today. It makes today much more pleasing. Anyways, I just wanted to go over some maybe overall messages. We had, as you all know, we had an excellent performance in H1. Revenue has increased by about 10% with the three businesses performing well, underpinned by our strong commercial and operational capabilities. We continue to invest in the businesses. and deliver on our corporate strategy. In the first half, we had grown our portfolio, launching 59 products across our businesses and continued to strengthen our pipeline with more than 300 products currently in the pipeline. We further strengthened our leadership team. As you know, we had some additions. We had some shuffling around and some changes in responsibilities. We announced the strategic acquisitions of Zellium products. The Zellium acquisition included products, manufacturing facility, and R&D assets. Of course, as you know, we're still waiting for the final FTC approvals. We expanded into other territories, especially in Europe, in both UK, Spain, doing exceptionally well there. We're well positioned for sustainable long-term growth and have upgraded our guidance for this year. Group revenue expected to grow in the range of 6% to 8%, up from 4% to 6%, Group core operating profits to be in the range of $700 million to $730 million, up from $660 to $700 million. Injectable, very positive first half. Revenue growth of about 4%. Good strategic progress with the launch of 39 products across all of our markets. The daily acquisitions that we have announced positions us very well for the medium and long term. Europe officially entered into the UK and Spain. We continue to expand our portfolio with new launches, and we're seeing some good demand on our products. We had a low CMO revenue in the first half, but this is all due to timing. Mina, solid growth. We continue with the momentum supported in both our own products and by a similar franchise. Good progress with our new plant in Algeria and Morocco, which will open in 2025. Guidance maintained for the year with revenue growth expected in the range of 6% and 8% and for core operating margins to be in the range of 36% and 37%. The branded, again, excellent performance with revenue of 12%, 13% in constant currency. The timing of the tenders in first half means that the revenue and operating profit is strongly weighted towards the first half. Momentum continues to be driven by oral oncology portfolio and focus on the medication used to treat chronic illnesses. As with the last year, timing of tenders will result in a skew of revenue and profit to the first half, expected to operating costs to be second half weighted. Upgraded the revenue guidance, which is now expected to grow in high single digits in constant currency or 6% to 8% on the reported basis. Previously, it was low single digits on the reported basis. We expect core operating margins to be close to 25%. 2023 margins were 23.9%. Generics also had a strong half with volumes growth driving revenue up to 15%. Appointments of Heffron as a president of the generics business who brings extensive R&D experience will help further expand Heckman's products portfolio and pipeline. Our authorized generic of sodium oxibate continues to perform well on a revenue basis, albeit at reduced margin due to the expected increase in royalties. Increase in guidance for both revenue and core operating margins, revenue to grow in the range of 5% to 7% for full year 24, up from 3% to 5%. We expect 2024 core operating margins to be between 16% and 17% up from previous guidance of mid-teens. Expect increase in competition on certain products and higher R&D costs in the second half. I'll open it now for any more questions.

Thank you. Hi.