Finance
Hikma Pharma shares plunge to over three-year low on weak outlook
Published by Global Banking & Finance Review®
Posted on February 26, 2026
3 min readLast updated: February 26, 2026
Tags:corporate governance
Quick Summary
Hikma shares sank after FY2025 results as it withdrew medium‑term targets and guided weaker 2026 profit and revenue. Injectables margins were cut and Bedford, Ohio production is targeted for 2028. (investing.com)
Hikma Shares Sink to Three-Year Low After Cutting Outlook, Pulling Targets
Stock Reaction and 2026 Outlook
Feb 26 (Reuters) - British generic drugmaker Hikma Pharmaceuticals forecast slower annual revenue growth and profit on Thursday, falling short of expectations because of challenges in its injectables business, sending shares down 15% to more than three-year lows.
Leadership and Restructuring Moves
Hikma also withdrew its medium-term targets and said CEO Said Darwazah would step down as executive chair to focus on a strategic turnaround. He took up the dual role in December.
"I believe our 2026 guidance does reflect the realistic picture of what we can achieve this year," Darwazah told Reuters in an interview.
The update follows a bruising period of an industry-wide squeeze on generic medicine margins that shows little sign of easing. It comes as the company has grappled with manufacturing delays at its new U.S. factory in Bedford, Ohio.
Operational Delays: Bedford Timeline
Hikma said it expects Bedford to start full commercial production in 2028.
Share Price Hits Multi‑Year Low
Hikma's shares fell to their lowest since November 2022 in early trade, after giving up more than a fifth of their value last year.
GAPS TO FILL IN SALES AND MARKETING TEAMS
2026 Profit Guidance vs. Consensus
The firm forecast core operating profit of between $720 million and $770 million for 2026, below a company-compiled consensus estimate of $784 million. Revenue growth this year is expected to be between 2% and 4%, down from 7% in 2025.
Injectables Growth Trimmed
Hikma expects revenue from its injectables business to grow in the low single digits, compared with analysts' expectations of high single-digit growth.
US Customer Insourcing Impact
Delays in some product launches and a decision by one of its key customers to have domestic manufacturing in the United States weighed on guidance, CFO Khalid Nabilsi told Reuters.
CFO Transitions to Deputy CEO
Nabilsi will take on a new role of Deputy CEO, North America and Europe and step down as CFO, among other management changes.
Sales and Marketing Gaps Identified
"We identified over the past two months gaps in sales and marketing teams which we need to fill," Nabilsi said.
Margins Compress; Further Pressure Ahead
Hikma's core profit fell 6% in the year ended December 31, 2025. Margins contracted to 31% for 2025 from 35.3% in 2024, and are expected to shrink further this year, to between 27% and 28%.
Deal Talk: Brookfield Backs Away
This month, Brookfield Private Capital ruled out making an offer for Hikma.
(Reporting by Sri Hari N S in Bengaluru and Bhanvi Satija in London; Editing by Mrigank Dhaniwala, Emelia Sithole-Matarise and Clarence Fernandez)
Key Takeaways
- •Shares fell over 15% after FY2025 results and a softer 2026 outlook; the company also withdrew medium‑term targets. (investing.com)
- •For 2026, Hikma guides revenue growth of 2%–4% and core operating profit of $720m–$770m, below a $784m consensus. (lse.co.uk)
- •Injectables underperformed: 2025 margin slipped to ~31% (35.3% in 2024) and is guided to 27%–28% for 2026; revenue growth to be low single digits. (investing.com)
- •Bedford, Ohio injectables facility is targeted to begin commercial production in 2028. (marketscreener.com)
- •Leadership changes: Said Darwazah will focus on the CEO role; CFO Khalid Nabilsi becomes Deputy CEO, North America & Europe, stepping down as CFO. (hikma.com)
Frequently Asked Questions about Hikma Pharma shares plunge to over three-year low on weak outlook
1What is the main topic?
Hikma’s share price dropped sharply after full‑year results, as the firm withdrew medium‑term targets and issued a weaker 2026 outlook driven by pressure in its injectables business. (investing.com)
2Why is the injectables unit weighing on guidance?
Margins compressed in 2025 and are guided lower for 2026 amid mix shifts, added investment and operational delays, prompting slower revenue growth expectations. (investing.com)
3When will the Bedford, Ohio plant start commercial production?
Hikma expects the Bedford, Ohio injectables site to commence commercial production in 2028. (marketscreener.com)
4Were there leadership changes tied to the update?
Yes. Said Darwazah is focusing on the CEO role, while CFO Khalid Nabilsi becomes Deputy CEO for North America & Europe and steps down as CFO; an acting CFO is in place. (hikma.com)
5Did Brookfield plan a takeover of Hikma?
No. On Feb 4, 2026, Brookfield Private Capital said it does not intend to make an offer for Hikma, ending recent speculation. (tradingview.com)
