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Gedeon Richter Pharma Company Anticipates Double-Digit Growth

MTI-Hungary Today 2024.03.01.

Gedeon Richter, the renowned pharmaceutical giant, is gearing up for another year of exceptional growth and expansion, building on its remarkable performance in the previous year, according to Világgazdaság and MTI.

CEO Gábor Orbán recently unveiled the company’s ambitious plans at a press conference, highlighting their resilience in the face of challenges posed by fluctuating exchange rates, and unwavering commitment to innovation and excellence.

Last year marked a significant milestone for Richter, with growth recorded across all business units.

Notably, contributions from neuropsychology, gynecology, and generics, coupled with advancements in biotechnology, fueled the company’s success. Forecasted pharmaceutical sales for the current year range between EUR 2.15B and EUR 2.25B at constant exchange rates, with adjusted operating profit projected to reach an impressive EUR 725M to EUR 750M.

Mr. Orbán emphasized Richter’s robust performance, revealing that at constant exchange rates, revenue in 2023 surged by nearly 22 percent, surpassing initial forecasts.

In 2023 alone, pharmaceutical sales soared by around 14 percent to a staggering HUF 747.4B (EUR 18.9B), while EBIT witnessed a remarkable 23.3 percent increase to HUF 189.4B (EUR 4.8B).

However, amid these accomplishments, Richter faced challenges such as foreign exchange losses and an additional profit tax, impacting its net profit. A foreign exchange loss and an extra profit tax of HUF 28.3B (EUR 718.5M) weighed down net profit in 2023. Excluding currency effects, pharmaceutical revenue reached nearly EUR 2B. The depreciation of the ruble (RUB) significantly affected the exchange rate, resulting in an exchange rate loss of HUF 38B (EUR 96.4M) in the same year.

Despite these hurdles, the company celebrated various achievements, including the successful launch of the central nervous system drug, Cariprazine, in additional countries. The company also witnessed a remarkable 41 percent annual increase in royalty revenues for its flagship product, Vraylar (cariprazine) in 2023, marking the highest growth rate in recent years.

Revenue across all segments showed double-digit growth on a rate-adjusted basis, underscoring the strong market position and broad portfolio of innovative products.

Looking ahead, Richter remains optimistic about its growth prospects, with a particular focus on expanding its presence in gynecological products and generic markets. The company is committed to maintaining its leadership position and driving innovation in key therapeutic areas. Additionally, Richter aims to leverage its expertise to become the European market leader in gynecological medicines by the end of the decade.

As Richter continues to expand its operations and pursue ambitious goals, investors remain attentive to its progress. The company’s shares, traded in the premium category of the Budapest Stock Exchange (BÉT), reflect investor confidence, with a slight increase observed in morning trading.

In addition to its financial performance, Richter is also committed to environmental sustainability. The company has set ambitious targets to reduce its carbon footprint, aiming for a 55 percent reduction in carbon emissions compared to 1990 levels by 2050. Richter has already introduced carbon footprint calculations at all its key subsidiaries, demonstrating its commitment to environmental responsibility and sustainable business practices.

Pharmaceutical Giant Gedeon Richter Elects New Chairman
Pharmaceutical Giant Gedeon Richter Elects New Chairman

The Hungarian pharmaceutical giant has already appointed its new chairman.Continue reading

Via Világgazdaság, MTI; Featured Image: Facebook / Richter Gedeon Nyrt.

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