British generic drugmaker Hikma Pharmaceuticals (HIK.L) posted a rise in first-half core operating profit and maintained its annual outlook on Thursday, supported by gains from its turnaround efforts, driving its shares up more than 10%.
Hikma, which sells its own-branded and licensed products in North America, the Middle East and North Africa, said it was well positioned to withstand potential U.S. tariffs on generic drug imports.
The drugmaker was forced to scrap its medium-term targets in February due to challenges at its injectables division and U.S. manufacturing delays.
Under CEO Said Darwazah, the company has been expanding its drugs lineup and tightening operations to address the pressures that have weighed on Hikma, which has lost about 18% in value in the past year.
Hikma's half-year core operating profit rose 9% to $405 million, while revenue grew 4% to $1.73 billion, beating RBC Capital analysts' expectations. The analysts said the guidance reiteration seemed potentially conservative in that context.
"We have made good progress against our strategic priorities in the first half of 2026, launching new products, strengthening our pipeline, signing new partnerships and optimising our manufacturing operations," Darwazah said in a statement.
Hikma's shares jumped as much as 10.3% to £17.33, logging their highest daily percentage gain since September 2022.
TARIFF CONCERNS
While Hikma again sought to dispel concerns of a major impact from disruptions in the Middle East, the prolonged conflict has made it difficult for businesses to predict outcomes.
It also faces potential U.S. tariffs on generic drug imports.
The company said the majority of the medicines it sold in the U.S. were manufactured in Ohio and New Jersey, and it would continue to engage constructively with the U.S. administration as it remained well positioned to weather developments.
Hikma also said there were meaningful improvements in its injectables production, adding it still expects to start full commercial manufacturing at its Bedford, Ohio, facility in 2028.
North America accounts for nearly 60% of Hikma's sales, followed by the Middle East and North Africa market at about a third of total revenue.
