Hikma Pharmaceuticals PLC

Jefferies has raised its price target on Hikma Pharmaceuticals to 2,025p from 1,870p, citing the expanding contract manufacturing business as the driver. The buy rating is unchanged, with the new target implying 24% upside from Tuesday's share price of 1,633p. Analyst James Vane-Tempest nudged medium-term revenue and earnings estimates up by 1% to 2%, encouraged by the contract manufacturing organisation arm and its longer-term potential. Management expects any future headwind from sodium oxybate to be offset by CMO expansion, with commercial production on a large contract due to begin in 2027, and Hikma is targeting roughly 20% of prescription drug revenue from contract manufacturing by 2030. The company reiterated full-year group guidance at its interim results while raising branded guidance to the top end of the range, though Jefferies cautions against reading the first-half performance as a run rate due to tender timing and temporary stockpiling in the Middle East and North Africa. The injectables franchise has stabilised, with around 80% of Vanco Ready customers having fully or partially switched to Tyzavan, and Jefferies expects a return to top-line and profit growth in that division from 2027. Jefferies forecasts revenue of $3.46 billion this year, broadly in line with consensus, rising to $3.57 billion in 2027, about 1% below the market.

SIGA Technologies reported second-quarter product-related revenue of $38 million, including the final delivery under its existing U.S. contract, and is targeting an FDA submission for its post-exposure prophylaxis program in the first half of 2027. The $38 million consisted of $24 million of IV TPOXX delivered to the U.S. Strategic National Stockpile and $13 million of oral TPOXX delivered to two international customers. CEO Diem Nguyen said the company is actively engaging with the U.S. government on a new multiyear procurement contract, though progress has been slower than in the past due to changes within the Department of Health and Human Services. Internationally, SIGA is working with Hikma to expand TPOXX across the MENA region, with SIGA serving as the exclusive manufacturer and supplier. For the six months ended June 30, 2026, product-related revenues were $41 million, net income was $9 million, and the company held $118 million in cash with no debt.

Hikma Pharmaceuticals reported first-half 2026 results with group revenue rising 4% to $1,728 million and core operating profit up 9% to $405 million. Reported operating profit jumped 30% to $336 million, reflecting the absence of prior-year legal settlement costs, while core EBITDA increased 8% to $463 million. The company declared an interim dividend of 38 cents per share, up 6%, and has completed $227 million of its $250 million share buyback program. Management reiterated full-year guidance for 2% to 4% constant-currency revenue growth and core operating profit between $720 million and $770 million. Hikma's stock was trading at GBp 1,722.00, up 9.61%.