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Egis targets 2% revenue rise for 2010, 10-11% climb for 2011

Hungarian drug maker Egis targets a 2% increase in revenue, calculated in forints, for 2010, but it sees turnover rising 10-11% in 2011, deputy-CEO László Marosffy said at a press conference on Thursday, a day after the company published its Q3 report.

Next year, Egis expects growth on all of its markets, even for finished products and active ingredients on western markets, Marosffy said. It expects exports to western markets to decline significantly in its business year ending September 30, he added.

Egis targets a 5% sales increase on the domestic market for both this year and the next, Marosffy said. It expects an 8% increase on markets in Eastern Europe, also both in this year and the next, he added.

Sales in the CIS, calculated in dollars, are expected to rise 10% in 2010 and 8-10% in 2011.

Egis expects sales of finished products in Western Europe to fall 35% this year. Sales of active ingredients in the region are seen dropping 25%. Next year, sales of finished products in Western Europe are expected to rise 0-5%, while active ingredient sales climb 15%.

Egis, majority-owned by France's Servier, had net profit of HUF 5.14 billion in the third quarter of its business year started October 1, more than double the HUF 2.4 billion in the same period a year earlier thanks to financial gains, the company's consolidated report for the period published late Wednesday shows.

In Q1-Q3, Egis's domestic sales revenue rose 3%. Exports to Russia climbed 8% and deliveries to Ukraine and other CIS countries were up 19% from the same period a year earlier. Exports to Eastern Europe rose 5%. Sales of finished products in Western Europe plunged 40%, while sales of active ingredients in the region dropped 32%.

Marosffy attributed the big rise in general costs in Q3 -- 12% from the same period a year earlier -- to the launch of new products. Egis launched six new products on the domestic market and seven on export markets in the 2009/2010 business year, and it has plans to launch 30 new products over three years, he added.

Answering a question, Marosffy said Egis's capital expenditures will come to about HUF 13.5 billion in its 2009/2010 business year and it plans to spend about the same on investments in the next business year.

Asked about acquisitions, Marosffy said Egis is considering the possibility, but has no specific plans at the moment. (MTI – Econews)