Hikma Pharmaceutical has delivered a solid performance in 2017 showing the benefit of our diversified business model, Said Darwazah, Executive Chairman of Hikma, said Wednesday in a full year results report in which the company posted net debt reduction to $546 million from $697 million and healthy leverage ratios maintained.
Hikma reported Group operating loss of $747 million, down from income of $302 million, explaining this is primarily due to the impairment of West-Ward Columbus’ intangible assets of $920 million and property plant and equipment of $164 million.
Darwazah said that the profitability in the company’s Branded business remained stable and our Injectables business was resilient, maintaining strong profitability despite new competitors for its top products and benefiting from its strong market position in the US hospital segment. Core Group revenue was reported $1,936 million, down 1%, despite challenging market conditions in the US, the company said.
He also pointed out the increasingly competitive dynamics of the US market, including intense pricing pressure, had a material impact on Hikma’s Generics business and, in particular, on West-Ward Columbus.
The Chairman noted that this was further impacted by the delay in approval for Hikma’s generic version of Advair Diskus. “As a result of these headwinds, we have had to take an impairment related to the West-Ward Columbus business to reflect our updated view of the fair value of this business,” he said.
To be more competitive Hikma is making transformational changes across the Group. It has recently announced the appointment of Siggi Olafsson as Chief Executive Officer, who is said to be the right person to take the business to the next level.
“I am confident that the investments we have made across our businesses in 2017 – in our people, our capabilities and our facilities – leave us well positioned to achieve our strategy for growth,” he noted.
Siggi Olafsson, Chief Executive Officer of Hikma, sees the incredible potential of this business and he says is confident that the operational improvements already under way will deliver substantial value to Hikma’s customers, employees, investors and the wider community.