Hikma Pharmaceuticals lowered its medium-term core operating profit expectations on Thursday due to margin pressures and increasing competition in its largest unit. 

Hikma faces concerns about margin growth in its injectables business due to rising costs and increasing competition, after the company narrowed its full-year operating margin forecast for the unit in August. The unit accounted for 42% of total revenue in 2024.

It anticipates medium-term profit margin for the injectables business to be around 30%, due to a delay in the start of production at its Bedford manufacturing facility. It now expects the facility to be fully operational towards the end of 2027.

The company now expects medium-term core operating profit to grow in the range of 5% to 7%, down from its previous outlook of 7% to 9%, and compounded annual revenue growth to be at the lower end of the 6% to 8% range.

Additionally, Hikma announced that the head of its injectables unit, Bill Larkins, has stepped down from his role, with CEO Riad Mishlawi taking the role on an interim basis.

(Reporting by Unnamalai L in Bengaluru; Editing by Janane Venkatraman and Mrigank Dhaniwala)