Richter expects government measures to cut next year's profits at least Ft 7 billion

Pharma

Hungarian drug company Richter expects earlier announced government measures to result in a Ft 7 billion reduction in next year's profits, CEO Erik Bogsch said on Tuesday, after the publication of the company's Q1-Q3 report.

A projected rise in energy prices will add several billion forints to 2007 costs, Bogsch said. He added that the projection did not include the effects of inflation picking up from 2006. Profits will fall Ft 3.3 billion because of the government's requirement that drug companies pay back part of state subsidies on their drugs. The so-called solidarity tax -- a 4% tax on top of the corporate tax -- will reduce profits Ft 3 billion, and an increase in fees for drug sales representatives will take a Ft 700 million bite out of profits. The shortfall, Bogsch noted, is about half of Richter's annual R+D spending. The government's measures will put Hungarian drugmakers at a disadvantage in the long run, Bogsch said. The state owns a 25% stake of Richter. (Mti-Eco)

ADVERTISEMENT

Reforms to raise productivity would strengthen recovery - OE... Analysis

Reforms to raise productivity would strengthen recovery - OE...

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.