Hikma reports revenue rowth, but stock falls on cautious forecast, amid leadership changes

UK-based Hikma Pharmaceuticals posted higher annual revenue, and with challenges in performance in its injectables segment, investors reacted negatively to its outlook, sending shares to a three-year low, according to Reuters.

Said Darwazah, Chief Executive Officer (CEO) of Hikma, said:

“Strong momentum in our Branded and Hikma Rx businesses and growth in all our geographies enabled us to deliver Group revenue and profit growth in line with guidance, and resilient margins. While our Injectables business has experienced some challenges, we are taking clear steps to address these and we are confident in the longer-term prospects for this business.

The leadership changes that we are announcing today will enable us to execute the Group strategy with more agility and greater accountability. To support this, I will relinquish my Executive Chairman responsibilities and focus fully on being CEO.

We are confident in the guidance we have set for 2026, which assumes continued strong momentum in Branded and Hikma Rx and increased investment in Injectables. Looking ahead, our focus is on delivering sustainable profit growth. I remain optimistic for the future and am committed to returning to the out-performance we and our shareholders expect. Reflecting this, and our strong cash flow generation, we have increased our total dividend by 5% and are announcing a $250 million share buyback, which we will execute over the course of the year.”

Despite top-line growth, expectations for future margins and broader pricing pressures in the generics market weighed on investor sentiment. Generics suppliers often face headwinds from price erosion, competition and rising manufacturing costs — trends that can quickly erode share price even when revenue grows.

This implies that a revenue beat alone is no longer enough to sustain valuation when future profit dynamics appear uncertain. Furthermore, price erosion in generics continues to be a structural challenge. It reminds that companies are increasingly judged on sustainable margins and strategic positioning, not just topline metrics.

Hikma’s stock slide serves as a reminder that forward guidance and market sentiment matter as much as current performance in pricing pharmaceutical equities.