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Richter stands by projection for flat revenue in 2012

Hungarian drugmaker Gedeon Richter is standing by its projection for stagnating revenue this year, CEO Erik Bogsch said at a press conference on Thursday, after the company published its H1 earnings report.

Turnover in Hungary could drop 15-20% for the year, calculated in forints, but more than 20% in euro, Bogsch said. First-half domestic sales were down 10.8% in forints and fell 18.7% in euro, the report shows. Bogsch attributed the slide to changes to market regulation and falling prices. He noted that fiscal tightening was being felt in the healthcare sectors and in the area of drug subsidies in all countries, and the process of getting new drugs approved for support by social insurance had become slower and more difficult. Bogsch said markets in the CIS and in the European Union were the engine of growth in Richter's first half. The launch of sales of the drug Esmya in some European countries also supported the increase, he added. Sales in the CIS accounted for 44% of Richter's revenue during the period.