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Egis revenue projection edges up

Hungarian drug maker Egis has bumped up its projection for revenue growth this year to 7-9% from 7-8% a quarter earlier, CFO Csaba Poroszlai said at a press conference on Wednesday, a day after the company published its Q2 report.

Egis, majority-owned by France's Servier, had net profit of HUF 4.54 billion in the second quarter of its business year started October 1, down 4.0% from the same period a year earlier as foreign exchange losses weighed, the company's consolidated IFRS report published late Tuesday shows.

Exchange rate changes, which cannot be projected, have a big effect on revenue, Poroszlai said.

Egis has raised its projection for revenue growth in Russia this year to 12-14% from 10-12%, calculated in euros, he said. It puts growth in other CIS countries in the upper range of the 10-12% target announced in February, he added.

Egis has lowered its projection for revenue growth in Eastern Europe to 4% from 8%, he said.

Egis has raised is projections for revenue on western markets and now sees sales of active ingredients climbing 40% and sales of finished products rising 7-9%, Poroszlai said.

Poroszlai said there had been little change in the regulatory environment in Hungary. Drug makers may still reclaim payments on a subsidized medicine tax up to the amount of research and development spending, but it remains unclear where these refunds are to come from. The regulatory conditions in this matter are expected to become clear by July, he added.

Egis paid HUF 668 million on the tax on subsidized medicines in Q2 and it reclaimed HUF 650 million of the amount based on its R&D spending.