Hikma Pharmaceuticals PLC (HIK.L): Strategy improving, entry point compelling; initiate at Buy

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Hikma Pharmaceuticals PLC (HIK.L): Strategy improving, entry point compelling; initiate at Buy

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16 Jul 2026 00:00:00 ET │ 44 pages

Hikma Pharmaceuticals PLC (HIK.L)

Strategy improving, entry point compelling; initiate at Buy

CITI'S TAKE

We initiate coverage of Hikma with a Buy rating and a 12-month SOTP-

based price target of £17, implying c.14% share price return. Hikma is a

business in strategic reset, with the right priorities: shifting R&D towards Buy

more differentiated assets, investing in US manufacturing for own products Price (15 Jul 26 12:30) £14.90

and contract manufacturing (CMO), and sustaining OUS momentum,

Target price £17.00especially in MENA where Hikma’s competitive moat is wide. The financial

inflection remains execution-dependent, with Bedford manufacturing Expected share price return 14.1%

plant coming online in 2028 among the most important catalysts, but we Expected dividend yield 5.1%

see the current valuation as providing a compelling entry point. We

Expected total return 19.2%forecast c.4% revenue, c.6% adj. EBIT, and c.8% adj. EPS CAGR (2026-

30E), with c.100bps of adj. EBIT margin improvement. A combination of Market Cap £3,155M

c.5% dividend yield, low multiple vs. history, a strong balance sheet, and US$4,175M

potential for further buyback (not in our model) provides additional support.

US Injectables: proof points still pending, but the price of waiting has fallen —

TYZAVAN has a compelling position as the only FDA-approved ready-to-use (RTU) Price Performance

vancomycin bag with a 9yr. patent wall, and the R&D pipeline is broadening towards

(RIC: HIK.L, BB: HIK LN)complex injectables where competitive intensity is lower. Proof points are still

pending, with share gains in competitive accounts and progress on Bedford being