Hikma Pharmaceuticals PLC on Thursday updated its full year guidance across its divisions after reporting continued ‘strong momentum’ in a trading update.

The London-based pharmaceutical company forecasts core operating margin growth of around 20% for its Generics division, and said it expects 2023 revenue for the arm to be in the range of $920 million to $940 million.

This is the result of ‘favourable market dynamics’ across Generics, Hikma said, as well as a ‘stronger than expected’ revenue contribution from its authorised generic of sodium oxybate.

In addition, Hikma anticipates full year revenue for its Branded division to grow in the mid-to-high single digits at constant currency and expects its core operating margin to rise around 23%.

On a reported basis, the drugmaker said it continues to forecast revenue for the division to be in line with 2022, ‘offsetting headwinds resulting from the devaluation of the Egyptian Pound and the closure of our Sudan operations,’ it said.

As for Injectables, despite reporting ‘solid growth’ and ‘good progress’ on its new facilities in Morocco and Algeria, Hikma now expects full revenue growth and core operating margin to be at the lower end of its guidance range of 7% to 9% and 36% to 37% respectively.

This factors in the closure of its Sudanese manufacturing facility, investment in its compounding business and ‘short-term capacity constraints in the US’, Hikma explains.

Chief Executive Officer Riad Mishlawi says: ‘The good momentum during the first half has continued, enabling us to upgrade full year guidance in two of our three businesses...Overall, the group is making excellent progress, and we are on track to deliver very strong earnings growth for the full year.’

Shares in Hikma fell 2.1% to 1,880.50 pence each in London on Thursday morning.

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