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Richter may say profit fell 33%, hurt by Hungary: outlook

Gedeon Richter Nyrt, Hungary's largest drugmaker, may say fourth-quarter profit fell 33% as demand slumped in its home market and the Russian government stopped reimbursing some of its products.

Unconsolidated net income probably declined to Ft 9 billion ($45.8 million) from Ft 13.5 billion a year earlier, according to the median estimate of nine analysts surveyed by Bloomberg News. Richter, based in Budapest, is expected to report earnings later this week. Gedeon Richter Nyrt struggled as Hungary raised corporate taxes, the state health insurer imposed lower prices on some drugs, and Russia removed several of the company's products from its subsidy list, said Vladimira Urbankova, an analyst at Erste Bank.
„The whole situation was pretty shaky,” said Urbankova, who is based in Prague. „I don't think I'm extremely optimistic.” A payment from Forest Laboratories Inc., which bought the US and Canadian rights to an experimental pain drug in 2005, may help buoy earnings, according to Urbankova and Attila Vágó of Concorde Securities in Budapest. A year ago, Richter received Ft 3.6 billion from New York-based Forest. The following is a summary of Q4 earnings forecasts. All figures are in billions of forint. (Bloomberg)