Hikma Pharmaceuticals plunged over 17% after posting 2025 results in line with guidance but warning of a sharp margin contraction in its injectables division, triggering a withdrawal of medium-term targets.

Core revenue grew 6% to $3.35 billion, with operating profit at $741 million (22.1% margin), within revised guidance. However, injectables margins collapsed to 31% from 35.3%, missing guidance and analyst expectations, leading to a 7% profit decline. For 2026, injectables margins are projected to fall further to 27-28%, a significant 400 basis point shortfall versus analyst forecasts.

Hikma withdrew all medium-term guidance, citing leadership restructuring, and guided 2026 group revenue growth of 2-4% (below consensus 5.5%) and operating profit at $720-$770 million (below $778 million consensus). The company announced a $250 million share buyback and raised the dividend 5% to 84 cents per share.