Why Hikma Pharmaceuticals Stands Out

Hikma's growing injectables business makes this generic manufacturer stand out

Michael Waterhouse 19 December, 2011 | 1:56PM
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Although it is the largest generic drug manufacturer in the Middle East and North Africa region, Hikma Pharmaceuticals (HIK) has operations that span the globe. The company's access to fast-growing emerging markets and the ability to take market share in developed markets make Hikma a force to contend with. Since going public in 2005, the company has nearly tripled its revenue, and after the recently announced acquisition of Baxter's (BAX) injectables business, management appears determined to keep up the pace. Hikma's low-cost operations and diversified product offerings should expand this company's reach in the years to come while maintaining attractive returns on capital. We think the company's low-cost advantages combined with defensible injectable and branded drug operations garner a narrow economic moat.

The above is an excerpt from the Morningstar Research Report on Hikma. Premium subscribers can read the full report by clicking here.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Hikma Pharmaceuticals PLC1,837.00 GBX0.05

About Author

Michael Waterhouse  Michael Waterhouse is a healthcare equity analyst with Morningstar.

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