Is HIK.L (Hikma Pharmaceuticals PLC) Halal or Haram?

Based on our AAOIFI-standard shariah screening, HIK.L is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in HIK.L.

Hikma Pharmaceuticals is a multinational pharmaceutical giant primarily focused on generic and branded medicines. The company operates through three main segments: Injectables, which supply hospitals with critical generic injectables; Generics, providing oral medications to the retail market; and Branded, which offers branded generics and in-licensed products across the Middle East and North Africa (MENA) region and beyond. As a major player in the FTSE 100, Hikma is a key supplier of essential medicines, particularly in the US and MENA markets . For Muslim investors using HalalStocks.co.uk, Hikma's current status is classified as 'D oubtful.' While the company easily passes the business activity screen—since producing medicine is a socially responsible and halal endeavor—it struggles with the financial ratios set by AAOIFI standards. Specifically, the company fails the leverage test, meaning its interest-bearing debt is too high relative to its total market value. Financially, the main hurdle is the Debt-to -Market Cap ratio, which currently sits at 56.7%, well above the permissible limit of 33%. However , the company demonstrates strong compliance in other areas, with liquid assets (Cash & Securities) at a healthy 12 .2% and interest income contributing a negligible 0.33% to total revenue. This suggests that while Hikma is not earning significant haram income, its capital structure relies too heavily on interest-based borrowing at this moment. Investors interested in the healthcare sector should monitor Hikma's balance sheet closely in upcoming earnings reports. If the company pays down debt or if its share price rises significantly (increasing market cap), the leverage ratio could drop back within the 33% safe zone. Until then, strict adherents to AAOIFI standards would typically avoid this stock or wait for the financial ratios to improve. Hikma Pharmaceuticals PLC operates in the Healthcare sector under the Drug Manufacturers - Specialty & Generic industry and is headquartered in London, GB. The company is led by CEO Said Samih Taleb Darwazah and employs approximately 9,500 people.

HIK.L was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. HIK.L passed 3 of these 4 screens.

HIK.L was last screened on 2026-03-01. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.