Gedeon Richter Aims to Improve Women’s Quality of Life

The company headquartered in Budapest has set itself ambitious growth targets for the next ten years. The main goal of Gedeon Richter’s vision up to 2035, is to improve the quality of life globally, especially for women and people with psychiatric disorders, reported Világgazdaság.

Richter has announced a new long-term strategy, setting out the main directions and growth focus points for the pharmaceutical company for the next ten years. The Richter 2035 strategy has been shaped over the past six years by building a strong product portfolio and pipeline, adding key capabilities in research and development, manufacturing and commercialization, and renewing the leadership team. Meanwhile, the share price has doubled and the dividend paid by Richter has risen to record levels.

The patent protection for the anti-psychotic drug cariprazine, which is a popular product and accounts for a significant share of profits, expires in 2029-2030, a key date that is now within the strategic horizon, and one that has made it necessary to create a new strategy, said CEO Gábor Orbán at a press conference to present plans up to 2035.

The new vision aims to improve the quality of life globally, particularly for women, and people with psychiatric conditions. They want to diversify, they do not want to depend only on cariprazine, just as they did not want to depend on the Russian market before, so they are expanding their product portfolio, focusing on what they know, and in what they have experience and competence.

They want to offer affordable, high quality products to as wide a range of patients as possible. Innovation and affordability are the two pillars of Richter’s new strategy up to 2035.

The innovative segment will focus on research into the treatment of gynecological problems and the development of a neuropsychiatric molecule, while the affordable segment will focus on immunology and products for musculoskeletal, cardiovascular, diabetes, and obesity. In the field of neuropsychiatry, they are already looking for a successor to cariprazine, with the aim of developing a new molecule to be launched on the US market too.

Péter Turek, head of the gynecology business, said they would like to double the segment’s revenue of €800 million last year in the next ten years. Hungary is a very strong market for them, with a 35% share of gynecological products there. There is room for further growth here in particular.

Currently, Richter is focusing on four classic therapeutic areas in this segment, namely: contraception, fertility, menopause, and endometriosis.

They are looking to expand their portfolio into new areas with original products to meet demand, and they can already rely on the research team acquired through acquisitions last year. They would also like to expand geographically, with the US market being very strong in this respect.

Taking all this into account,

by 2035, Richter’s revenues from its gynecology, GenMed, and biosimilars businesses could be €3.2-3.5 billion.

This could be complemented by neuropsychiatry and its royalty income, as well as possible further acquisition effects. This can be achieved at an annual growth rate of 7-8%, which is no small undertaking given that the market average is currently around 6.5%, Orbán stressed.

The good news, according to the CEO, is that Richter can commit to paying a basic dividend of over €200 million per year within all these parameters, with room for a significant increase in the first half of the strategic time frame. This will depend on how much royalty income the company receives and what acquisition opportunities arise along the way.

Via Világgazdaság; Featured picture: Hungary Today