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Egis, Richter saw Q3 sales to Russian state decline

Egis Nyrt and Gedeon Richter Nyrt, Hungary's biggest drugmakers, saw sales to Russia's state medicines program drop in the Q3, months before the country ended subsidies for some of their products.

Richter, eastern Europe's biggest drugmaker, had its share of Russia's DLO program drop to 2.2% in the quarter ended September 30, compared with 4.3% a year earlier, according to data released January 29 by Pharmexpert, a Russian research agency. Egis's share fell to 0.6% from 1.1% in the quarter. Egis said it expected sales to the DLO in the final three months of 2006 to decline because Russian authorities removed subsidies on 13 of its products November 1. The de-listed products made up about 4% of Egis's Russian revenue, which reached $95.5 million in the fiscal year ended September 30, according to the company's financial report. Richter spokeswoman Zsuzsa Beke declined to comment on the report. Pharmexpert couldn't comment on the impact of the November 1 changes at the DLO, as the group will not release Q4 data until the end of February, said Svetlana Nikulina, a client service manager at the agency. (Bloomberg)