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Richter Q2 profit rises on weak forint

Hungary’s Richter Gedeon Nyrt, eastern Europe's biggest drugmaker by market value, said second-quarter profit rose 48% because of the weak Hungarian currency and income from exports. Net income rose to Ft 15.9 billion ($74.4 million) the Budapest-based company said in a stock exchange statement today. The company was expected to earn Ft 11.7 billion, according to the median estimate of six analysts surveyed by Bloomberg news. The Forint traded at an average of 212 to the dollar in the second quarter, 7% lower than the average price in the second quarter of 2005. Export sales jumped to $159 million, compared with $149.9 million in the year-earlier period. “Revenue from exports managed to compensate for negative circumstances in the domestic market,” Richter's statement said. Revaluation of trade receivables and payables also added about Ft 2.4 billion in financial income in the second quarter. Richter's quarterly revenue rose 13% from a year earlier to Ft 43.1 billion. Two thirds of its annual sales of $ 705 million in 2005 are exported to 80 countries (Russia, EU, USA, Japan, etc.) The company has a worldwide presence through its representative offices, subsidiaries in 30 countries. It has production facilities in Russia, Romania, Poland and India. The product portfolio of the company includes more than 100 products and covers almost all important therapeutic areas. Based on its traditional skills in steroid chemistry, the company is a significant player in the gynecological field worldwide. A significant part of the company’s turnover results from original drug research and development activity. (Bloomberg,