Hikma’s success continues to be underpinned by its diverse business model, which combines an extensive presence and experience in the Middle East and North Africa (“MENA”) markets, a fast growing global Injectables business and an oral generics business in the US.
At the outset of 2011, delivering growth in the MENA region looked challenging, given the significant disruptions we were seeing in some markets - particularly in Egypt, Tunisia and Libya - as a result of the Arab Spring. Yet the resilience of our local operations and the dedication of our employees enabled us to manage these disruptions with minimal impact to our business and we are extremely pleased to deliver double digit growth in the MENA region for the full year.
During 2011, we also remained focused on our goal to be a global leader in generic injectables. We delivered an excellent performance in our organic Injectables business with strong growth across the US, Europe and MENA. In May, we completed the acquisition of Baxter Healthcare’s US Multi-Source Injectables business (“MSI”), doubling the size of our existing Injectables business and bringing together a broad product portfolio, strong sales platform, customer relationships and US manufacturing facility with Hikma’s growing pipeline and high quality manufacturing facilities in Europe – an extremely powerful combination.
As always, we remain committed to upholding the highest standards of quality and integrity in everything we do. I was extremely proud that these efforts were recognised when we won the Hermes Transparency in Governance Award for Best FTSE 250 Audit Report, which highlighted our commitment to clear and open stakeholder communication. We have continued to develop our approach to reporting during the year in order to increase stakeholder understanding of the way our business is governed.
During the year we also strengthened our Board, welcoming Robert Pickering as an independent non-executive director. Robert brings extensive experience in advising high growth companies on issues relating to financing, corporate governance, strategy and global operations. Robert spent 23 years at Cazenove & Co. becoming the first Chief Executive of Cazenove Group PLC in 2001 and subsequently of JP Morgan Cazenove, the joint venture partnership, until retiring in 2008.
The Board is recommending a final dividend of 7.5 cents per share (approximately 4.6 pence per share), which will make a dividend for the full year of 13 cents per share, in line with 2010. The proposed final dividend will be paid on 24 May 2012 to shareholders on the register on 20 April 2012, subject to approval by shareholders at the Annual General Meeting.
From the Company’s listing in October 2005 through the end of 2011, we have delivered a total shareholder return of+191% We are delighted with this performance, which exceeds that of the FTSE 250 index and the FTSE Pharmaceutical index, which grew by 49% and 11% respectively, over the same period.
The strength of our global, diversified business model has enabled us to deliver a robust performance in 2011. We are confident that the business is positioned to deliver continued growth in the short, medium and long term.
Samih Darwazeh, Non-Executive Chairman