Gedeon Richter, eastern Europe's biggest drugmaker, distributed shares worth Ft 1.3 billion ($6.5 million) as a part of an incentive program for employees.
Gedeon Richter Nyrt gave 32,240 of its own shares to workers in return for an „exceptional performance” and to encourage strong results, the company said in a statement to the Budapest Stock Exchange (BÉT) today. Shares in Richter closed at Ft 39,060 December 8.
The company, based in Budapest, is working to find new sources of profit to compensate for the Hungarian government's new drug law, which requires companies to pay a rebate on state subsidies. Richter estimated that the law, in combination with other taxes and subsidy cuts, could lower 2007 profit by at least Ft 7 billion. (Bloomberg)