Richter Q3 earnings climb on higher sales, financial gain


Third-quarter net income of Hungarian pharmaceuticals company Gedeon Richter rose 69.2% year-on-year to HUF 38.2 billion, boosted by higher sales and a financial gain, state news wire MTI says, citing an earnings report published ahead of the opening bell on Monday.

Revenue increased 14.4% to HUF 157.5 bln. The direct cost of sales rose at a faster clip, climbing 18% to HUF 71.8 bln.

Gross profit rose 11.5% to HUF 85.7 bln.

Sales and marketing costs increased 14.6% to HUF 27 bln and R&D spending was up 24.2% at HUF 16.5 bln.

Operating profit rose 10.6% to HUF 33.1 bln.

The bottom line was lifted further by a HUF 6.6 bln net financial gain, compared to a net loss of HUF 4.5 bln in the base period.

Q1-Q3 net income reaches HUF 93 bln

For the period Q1-Q3, Richter's net income rose 12% to HUF 93.1 bln.

Revenue increased 9.1% to HUF 454.3 bln. The direct cost of sales climbed 12.4% to HUF 202.2 bln. Gross profit was up 6.6% at HUF 252.2 bln.

Sales and marketing costs rose a moderate 6.2% to HUF 83.8 bln but R&D spending climbed 12.4% to HUF 48.1 bln.

Operating profit increased 14.2% to HUF 93.9 bln.

Earnings per share came to HUF 501 for the period.

"Sales revenues in the first nine months were up on a year-on-year basis in most markets in both HUF and EUR terms, fueled by growth in the specialty portfolio, in particular higher Vraylar and Evra royalties. This broad-based strength in revenue performance was translated into a solid bottom line also ex-Vraylar, despite higher spending on R+D than planned," CEO Gábor Orbán said in the report.

Richter's antipsychotic cariprazine, sold under the brands Vraylar and Reagila, was the company's second-biggest selling product during the period after oral contraceptives. Cariprazine turnover rose 11.2% to HUF 74.7 bln. That turnover included HUF 71.3 bln in the United States, helping to make the country Richter's biggest market for pharmaceutical sales, followed by Russia and Hungary.

Orbán noted that Richter announced in October clinical trial results that advance cariprazine as a potential adjunctive treatment option for Major Depressive Disorder, and said U.S. peer AbbVie is expected to file a supplemental new drug application to the U.S. Food and Drug Administration for the expanded use of the drug in the first half of 2022.

Royalties from Evra, a transdermal contraceptive patch that Richter acquired from Janssen for sale outside of the United States in January 2021, reached HUF 9.7 bln. 


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