What happened? Hikma''s 3Q25 trading update had confirmed the FY25 outlook but reviewed downward company''s MT outlook reflecting further pressure on company''s biggest margin contributor division. We believe new MT outlook implies 3-4% cut to 2027 margin consensus figures but more importantly that the depressed outlook for Injectables and the leadership revamp at its head will be poorly received by investors with shares likely down MSD. BNPP Exane View: Since the H1 update trimmed the injectables guidance amid competitive pressure on a few high‑margin products, triggering a 7% share‑price decline on earnings day, Hikma''s stock has subsequently traded relatively flat reflecting limited newsflow and modest exposure to FDA''s supportive stance towards biosimilars streamlining. We believe that today''s update will drive further pressure on the shares as company has further revised down the Injectables margin with MT outlook now expected around 30% (FY27 cons: 31.5%) leading Hikma to also cut its MT group core EBIT by 200bps at mid-point implying a 3-4% cut to consensus. We note that the head of the Injectables division is stepping down with CEO stepping up in the interim. While incrementally positive comments on Hikma Rx are reassuring and the LT $5bn topline guidance has been confirmed, we believe it will not be enough to offset Injectables underperformance (65% of FY24 margin) and expects shares down MSD. Company will host a conference call at 9.30am GMT and expects focus to be on the Injectables outlook, Jazz/Sodium oxybate royalty''s renegotiation and the several organisational changes. . MT guidance cut implies 3-4% downside to FY27 margin cons numbers. Company has reviewed its 2024-27 outlook and now expects the three-year group revenue CAGR of 6-8% to be at the lower end of the range (in line with cons), group core EBIT to grow in the range of 5-7% (vs. 7-9% before, 3-4% downgrade to cons implied) while it now anticipates Injectables margins to be...