European MedTech and Healthcare Services: President Trump announces 100% tariff on generics from Aug‘28: HIK and FRE better positioned given US manufacturing footprint

Research evidence excerpt

European MedTech and Healthcare Services: President Trump announces 100% tariff on generics from Aug‘28: HIK and FRE better positioned given US manufacturing footprint

t to Ramsay, given lower EBIT growth profile but comparable revenue growth

profile; 5) Corporate trades at c.10x EV/EBITDA. We apply these target multiples to our blended 2027-28E and apply a c.15%

conglomerate discount. We value the FMC stake at market value.

Risks

Key risks to our rating and target price include lack of corporate action on costs and leverage at the group level. With regard to

Kabi: lack of new launches, manufacturing issues, further pricing pressure in China. With regard to Helios: reimbursement

pressures, inability to adapt the German business to the growing outpatient trend.

Hikma Pharmaceuticals PLC

(HIK.L; £15.4; 1; 21 Jul 26; 16:30)

Valuation

Our 12-month price target of £17 values Hikma on a Sum-of-the-Parts basis. It assumes 1) Injectables trades at c.6x

EV/EBITDA, a c.20% discount to the average of injectable generics peers, reflecting execution risk in the US business incl.

Bedford facility ramp and TYZAVAN scaling; 2) Hikma Rx trades at c.7x, a significant discount to an average of Western-listed

generics and Indian-listed names with meaningful US generics exposure, given its muted revenue outlook, the absence of a

meaningful biosimilar pipeline, and the relatively early stage of its specialty buildout; 3) Branded trades at c.11x, broadly in line

with MENA peer average; 4) unallocated corporate costs are deducted at c.8x, in line with the blended group multiple. We

apply these target multiples to our 2027-28E EBITDA estimate and apply a c.12% conglomerate discount. Our price target

values Hikma at c.7x EV/EBITDA and c.9x PE on 2027-28E estimates.