olivLaw · European equity research
Hikma Pharmaceuticals PLC HIK.L
United Kingdom · London Stock Exchange · ISIN GB00B0LCW083 · Vertical: Listed companies from United Kingdom
Hikma Pharmaceuticals PLC is a global pharmaceutical manufacturer with three segments, Injectables, Branded and Hikma Rx, operating in North America, Europe and MENA. In fiscal 2025 core revenue grew 6% to $3,349 million, and the company guides to 2% to 4% revenue growth in 2026, which makes it a company to watch for the generics and injectables industry.
At the close of 06 Nov 2026, Hikma Pharmaceuticals PLC (HIK.L) stock was 16.50 GBP (−2.77% on the day), with beta 0.50, 52-week range 11.91–17.62 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 45.7
- neutral
- Bollinger (20, 2)
- 15.89 – 17.77
- in the lower half of the band · %B 0.32 · band width 11.2%
- SMA 50 / 200
- 16.28 / 15.08
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.26 / 0.29
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +0.2% | −0.2% | +0.4 pp | — |
| 3 months | −1.6% | −5.4% | +3.8 pp | — |
| 6 months | +16.4% | +4.4% | +12.0 pp | — |
| Year to date | +6.5% | +6.5% | −0.0 pp | — |
| 1 year | +8.4% | +10.0% | −1.6 pp | +3.7% |
| 3 years | −6.5% | +48.6% | −55.0 pp | +24.5% |
| 5 years | −31.0% | +41.4% | −72.4 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
the price (USD) and the reports are in different currencies
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 2.9 bn | 3.1 bn | 3.3 bn |
| Revenue YoY | unavailable | +8.8% | +7.1% |
| Net income | 190.0 m | 359.0 m | 402.0 m |
| Net income YoY | unavailable | +88.9% | +12.0% |
| Diluted EPS | 0.85 | 1.61 | 1.81 |
| Diluted EPS YoY | unavailable | +89.4% | +12.4% |
| net % | 6.6% | 11.5% | 12.0% |
| Free cash flow | 439.0 m | 399.0 m | 239.0 m |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 217.0 m USD
- Financial debt
- 1.6 bn USD
- Net debt
- 1.3 bn USD
- Equity
- 2.6 bn USD
- Total assets
- 5.7 bn USD
- Debt / equity
- 0.60x
- Current ratio
- 1.82x
- ROE
- 16.3%
- ROA
- 7.4%
- FCF margin
- 7.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 2.9 bn | 3.1 bn | 3.3 bn | esef· 18 Mar 2026verified |
| Cost of revenue | 1.5 bn | 1.7 bn | 1.9 bn | esef· 18 Mar 2026verified |
| Gross profit | 1.4 bn | 1.4 bn | 1.4 bn | esef· 18 Mar 2026verified |
| Research & development | 149.0 m | 141.0 m | 151.0 m | esef· 18 Mar 2026verified |
| Operating income | 367.0 m | 612.0 m | 542.0 m | esef· 18 Mar 2026verified |
| Interest expense | 95.0 m | 167.0 m | 107.0 m | esef· 18 Mar 2026verified |
| Pre-tax income | 281.0 m | 455.0 m | 519.0 m | esef· 18 Mar 2026verified |
| Income tax | 89.0 m | 93.0 m | 112.0 m | esef· 18 Mar 2026verified |
| Net income | 190.0 m | 359.0 m | 402.0 m | esef· 18 Mar 2026verified |
| Diluted EPS | 0.85 | 1.61 | 1.81 | esef· 18 Mar 2026verified |
Balance sheet · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 205.0 m | 188.0 m | 217.0 m | esef· 18 Mar 2026verified |
| Receivables | 824.0 m | 949.0 m | 1.1 bn | esef· 18 Mar 2026verified |
| Inventories | 891.0 m | 986.0 m | 1.1 bn | esef· 18 Mar 2026verified |
| Current assets | 2.1 bn | 2.3 bn | 2.6 bn | esef· 18 Mar 2026verified |
| Property, plant & equipment, net | 1.1 bn | 1.3 bn | 1.4 bn | esef· 18 Mar 2026verified |
| Goodwill | 388.0 m | 382.0 m | 393.0 m | esef· 18 Mar 2026verified |
| Intangibles (excl. goodwill) | 712.0 m | 774.0 m | 777.0 m | esef· 18 Mar 2026verified |
| Total assets | 4.7 bn | 5.1 bn | 5.7 bn | esef· 18 Mar 2026verified |
| Accounts payable | 568.0 m | 650.0 m | 715.0 m | esef· 18 Mar 2026verified |
| Short-term debt | 150.0 m | 642.0 m | 106.0 m | esef· 18 Mar 2026verified |
| Long-term debt | 975.0 m | 607.0 m | 1.4 bn | esef· 18 Mar 2026verified |
| Current liabilities | 1.3 bn | 2.0 bn | 1.5 bn | esef· 18 Mar 2026verified |
| Total liabilities | 2.5 bn | 2.8 bn | 3.1 bn | esef· 18 Mar 2026verified |
| Equity | 2.2 bn | 2.3 bn | 2.6 bn | esef· 18 Mar 2026verified |
| Shares outstanding at year end | 220.9 m | 221.6 m | 220.9 m | esef· 18 Mar 2026derived |
Cash flow · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 608.0 m | 564.0 m | 436.0 m | esef· 18 Mar 2026verified |
| Capex | 169.0 m | 165.0 m | 197.0 m | esef· 18 Mar 2026verified |
| Free cash flow | 439.0 m ≈ | 399.0 m ≈ | 239.0 m ≈ | esef· 18 Mar 2026derived |
| Investing cash flow | -333.0 m | -381.0 m | -388.0 m | esef· 18 Mar 2026verified |
| Financing cash flow | -337.0 m | -188.0 m | -25.0 m | esef· 18 Mar 2026verified |
| Share repurchases | 0 | 38.0 m | 36.0 m | esef· 18 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 5 of at least 6
- score weight coverage: 33.3% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
06 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Price and reporting are in different currencies; market indicators are unavailable.
Key indicators
Coverage and freshness
Score by group
33% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 20.04 – 31.09 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E20.04 – 31.09 (Mid 25.68)17 companies used · median multiple 14.2x · quartiles 11.1x – 17.2x0EV1.L, ABDN.L, ABF.L, AIRE.L, AJB.L, ALFA.L, AMIF.L, APTD.L, ASHM.L, AUTO.L, BAB.L, BAG.L, BATS.L, BBY.L, BCG.L, BKG.L, BME.L
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 11.6% | 46 (vs peers) | 31% |
| Net margin · Quality | 12.0% | 51 (vs peers) | 19% |
| FCF conversion · Quality | 59.5% | 42 (on a fixed band) | 19% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 5.1x | 55 (on a fixed band) | 19% |
| Current ratio · Balance sheet | 1.8x | 85 (on a fixed band) | 13% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet67/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality46/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
HIKMA PHARMACEUTICALS PUBLIC LIMITED COMPANY (HIK.L). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 3.3 bn USD in 2025; YoY growth 7.1%; net margin 12.0%; ROE 16.4%.
The estimated value range is 20.04–31.09 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 1.8x
What contradicts it
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 101.0 bn | 13.1 | 16.5% | 30.3% | −1.0% | +3% / +82% |
| ABF.LAssociated British Foods PLC | 14.4 bn | 14.1 | 9.2% | 5.3% | −3.1% | −7% / −16% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.0 bn | 24.4 | 34.7% | 4.1% | +7.2% | −11% / +155% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.3 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.3 bn | 16.4 | 23.2% | 2.8% | +15.2% | +21% / +162% |
| ABDN.LAberdeen Group PLC | 4.0 bn | 10.6 | 8.0% | 28.9% | −2.1% | +8% / +37% |
| BKG.LThe Berkeley Group Holdings PLC | 3.5 bn | 11.1 | 8.8% | 13.4% | −4.2% | −2% / −24% |
| BME.LB&M European Value Retail PLC | 2.8 bn | 17.2 | 21.2% | 2.8% | +3.7% | +66% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.6 | 49.9% | 33.1% | +18.0% | +7% / +126% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.7 | 13.1% | 71.6% | −0.1% | +27% / +16% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 757.3 m | 35.9 | 41.2% | 19.7% | +24.2% | +70% / unavailable |
| BAG.LA.G. Barr P.L.C. | 660.8 m | 14.2 | 14.4% | 10.8% | +4.0% | −9% / +24% |
| ASC.LAsos PLC | 496.9 m | — | -81.3% | -12.0% | −14.7% | +72% / +9% |
| ALFA.LAlfa Financial Software Holdings PLC | 480.3 m | 16.0 | 61.5% | 23.8% | +15.3% | −29% / +8% |
| AML.LAston Martin Lagonda Global Holdings PLC | 341.3 m | — | -93.4% | -39.2% | −20.6% | −46% / −85% |
| APTD.LAptitude Software Group PLC | 112.5 m | 28.7 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 10.3 m | — | — | — | −81.9% | +340% / +878% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −11% / +154% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +61% / +64% |
| AEP.LAnglo-Eastern Plantations PLC | — | — | 16.1% | 19.5% | +25.0% | +4% / +111% |
1- and 3-year price returns: for HIK.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Hikma Pharmaceuticals PLC is a global pharmaceutical manufacturer with three segments, Injectables, Branded and Hikma Rx, operating in North America, Europe and MENA. In fiscal 2025 core revenue grew 6% to $3,349 million, and the company guides to 2% to 4% revenue growth in 2026, which makes it a company to watch for the generics and injectables industry.
SWOT
Strengths
- A portfolio spread across three segments and three geographies, with a solid market position in MENA and an extensive injectables business.
- A balance sheet management considers healthy, with ratings upgraded by S&P and Fitch and a successful debt refinancing.
- Own manufacturing capacity in the US, Europe and MENA, which supports quality control and new product launches.
Weaknesses
- Injectables margins fell in 2025 due to product mix and foreign exchange costs, indicating sensitivity to portfolio structure.
- Hikma Rx remains with flat revenue and price erosion in its base portfolio, which limits segment growth.
- R&D spending remained below management's ambition, partly due to delayed project starts in Injectables.
Opportunities
- Biosimilar launches and expanded MENA partnerships could open new revenue sources in the coming years.
- Higher R&D investment planned for 2026 could bring a portfolio of higher-value products.
- Local production in MENA and Europe could support demand for products that can be supplied quickly during shortages.
Threats
- Strong competition on larger US products could continue to compress prices and margins.
- Tariffs on products imported into the US could raise costs if the trade regime changes.
- Currency swings and debt levels could affect profitability if financing conditions worsen.
Risks
- Generic price pressurehigh
Price erosion in the base portfolio of Hikma Rx could continue and could reduce revenue and margins 1.
- Litigation and legal costshigh
The company bore legal settlement costs in 2025 that affected reported profit and operating cash flow 1.
- Trade tariffsmedium
Products imported from China into the US are subject to tariffs, and a tightening of trade policy could raise supply costs 1.
- Indebtedness and financing costsmedium
Net debt rose in 2025, and higher interest rates could increase financing costs; management indicates the sensitivity to a rate change 1.
- R&D executionlow
Delays in starting projects, particularly in Injectables, could postpone revenue growth from new products 1.
Investment thesis
What would need to be true (bull case)
- If biosimilars and MENA partnerships translate into commercial volumes, the company could sustain revenue growth close to its 2026 guidance.
- The Branded segment shows rising margins and double-digit growth, which could offset pressure in other segments.
- A consolidated balance sheet and access to funding could support R&D and capacity investment if management's plans materialise.
What would break the thesis
- Injectables margins have fallen considerably, and if the trend continues, group profitability could stay below expectations.
- Hikma Rx remains stagnant, and continued generic price erosion could limit segment growth over the medium term.
- Higher financing costs and net debt could reduce financial flexibility if interest rates rise.
What to watch
- Delivery of 2026 revenue guidance (growth of 2% to 4%)2026
- Development of Injectables core margin, guided to 27% to 28%2026
- Impact of biosimilars and the Celltrion partnership on revenuenext 10-K
- R&D spending level against the 5% to 6% of revenue target2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Hikma supplies generic and specialty medicines to hospitals and pharmacies across three geographies: North America, MENA and Europe. The business relies on its own factories in the US, Europe and MENA, together with in-licensed products and biosimilars. In fiscal 2025 the company had 84 launches and received 99 approvals, according to its annual report 1.
The company strengthened its balance sheet in 2025: net debt reached $1,387 million and the net debt to core EBITDA ratio was 1.6x, up from 1.4x at end-2024 1. Hikma refinanced a $500 million Eurobond and signed new loans, showing access to funding.
Research and development spending was $151 million in fiscal 2025, or 4.5% of core revenue, below the 5% to 6% range management aspires to. Management indicated it will increase R&D spend in 2026 1.
Segments
Hikma Rx
Hikma Rx generated revenue of $1,037 million, broadly flat in fiscal 2025 as price erosion in the base portfolio offset strong in-market products. Core operating margin rose to 17.3%, and for 2026 management expects broadly flat revenue and a core margin close to 20% 1.
Market context
Hikma operates in markets with steady demand for generic and injectable medicines, particularly in MENA and Europe, where the company reported double-digit growth in injectables. In the North American market, pricing remains under pressure and competition on larger products is intense, which explains the flat performance of Hikma Rx.
The market is also shaped by tariffs and currency costs: products imported from China into the US are subject to tariffs, though the impact in 2025 was minor. If price pressure or tariffs intensify, margins in high-volume segments could be affected.
Trends
- Biosimilars and new launchestailwind
Hikma received approval for and launched its first biosimilar in the US, ustekinumab, and announced an expanded partnership with Celltrion for six more biosimilars in MENA. If these products reach commercial volumes, they could support medium-term growth 1.
- Generic price erosionheadwind
In Hikma Rx, core revenue stayed flat only because of well-performing in-market products, while the base portfolio suffered price erosion. Pressure on US generic pricing remains a risk for margins 1.
- Tariffs and supply chainmixed
Injectables has a global supply chain, and products imported from China into the US are subject to tariffs. The impact in 2025 was about $3 million, but tariffs could raise costs if the trade regime tightens 1.
- Expansion in MENAtailwind
The company signed 14 deals in MENA in 2025 and expanded local production, including a new general formulation plant in Tunisia. Growth in Branded and Injectables in the region suggests an advantage from local presence, although the margin mix is lower 1.
Competitive position
Hikma competes with global generic and injectable producers in the US, Europe and MENA. Competitive pressure is most visible on larger products in the US, where the company says it was partly offset by the Xellia acquisition and new launches 1.
In the MENA branded segment, competition comes from both local producers and international companies. Hikma's market strength in the region, based on a broad product range and partnerships, is its main declared competitive advantage 1.
- Teva Pharmaceutical IndustriesTEVA
Global generics manufacturer active in the US and Europe, competing in the same oral and injectable product categories.
- Sandoz Group
Generics and biosimilars manufacturer with global presence, relevant to Hikma's Injectables and biosimilar segments.
- ViatrisVTRS
Diversified pharmaceutical company with a generics portfolio in the US and other markets, relevant to the Hikma Rx segment.
- Fresenius Kabi
Manufacturer of injectables and hospital products, a direct competitor in the Injectables segment, especially in Europe.
News & filings
In the press
- Jefferies lifts Hikma target as CMO deal underpins growth storyYahoo Finance — News · 25 Aug 2026 · EN
Annual reports (ESEF)
- Annual report 202518 Mar 2026
- Annual report 202417 Apr 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Hikma Pharmaceuticals PLC · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.