Hikma Pharmaceuticals PLC

Overview Key strengths Key risks Leading player in the U.S. generic injectables market in terms of total volumes, focusing on various therapeutic fields, including anti-infectives, pain management, oncology, and cardiology. Exposure to the highly competitive generics industry and pricing pressure notably outside injectables. Broad product and geographic diversification (U.S. 59% of revenue, Middle East and North Africa 33%, and Europe and the rest of the world 8%) supported by regulatory expertise and a global manufacturing network of 32 plants. Inflationary environment could weigh on margins if the company is not able to launch new products. Increasing production capacity in the U.S. injectables market, thanks to Custopharm acquisition adding 13 approved products, which strengthens the company?s current pipeline. Despite a robust

...S&P Global Ratings believes that Hikma's strong balance sheet built up over the past year will support the company's credit quality, despite our anticipation of inflation, pricing pressure and stiff competition, and higher discretionary spending. The company posted very low S&P Global Ratings' adjusted debt to EBTIDA (leverage) of 0.8x in 2021 (0.6x as reported by the company), thanks to robust and resilient performances across its three division (generics, branded, and injectables). This was driven by the combination of sales growth at a constant exchange rate of 7% while its S&P Global Ratings' adjusted EBITDA margin expanded to above 30%, translating into record free operating cash flow (FOCF) generation of $361 million. As a result, we believe the company has sufficient financial flexibility to face the inflationary environment as well as tougher pricing pressure in some of its market segments, notably in the generics division where competitive pressure remains high. We also acknowledged...

Full Report