Improved Margin, Financial Gain Lift Richter Earnings in Q1

Pharma

Image by gedeonrichter.com

First-quarter net income of Hungarian pharmaceutical company Gedeon Richter climbed 74% year-on-year to HUF 68.2 billion, boosted by wider margins and a financial gain, state news wire MTI reports, citing an earnings report published ahead of the opening bell on Tuesday.

Revenue edged down 3% to HUF 203.4 bln. Direct cost of sales dropped 26pc to HUF 61.2 bln, lifting gross profit 12% to HUF 142.2 bln.

Richter booked net financial income of HUF 15.6 bln for the quarter, after a HUF 17.1 bln financial loss in the base period.

Earnings per share came to HUF 373 for the period.

Richter affirmed guidance for full-year pharmaceutical revenue, at a constant exchange rate, at EUR 2.15 bln-2.25 bln, rising in the "low-to-mid-teens" in percent.

First-quarter pharmaceutical sales -- calculated at a constant HUF/EUR exchange rate of 382 -- climbed 16%, boosted by higher turnover of Richter's antipsychotic cariprazine and women's healthcare products, Richter said.

Royalty income from Vraylar, one of the brand names for cariprazine, climbed 22% to HUF 49.4 bln. Estimated sales of Vraylar for 2024 is expected to be around USD 3.4 bln, according to earlier guidance by Richter's U.S. peer AbbVie, Richter noted.

Revenue of the women's healthcare segment climbed 17% to HUF 74.2 bln.

Richter had retained earnings of HUF 1.134 tln at the end of March, its balance sheet shows.

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