Richter CEO confirms HUF 15 bln expansion plans

Pharma

Gedeon Richter CEO Erik Bogsch confirmed yesterday that his drug manufacturing company will expand its Debrecen-based biotechology plant at a cost of HUF 15 billion, Hungarian news agency MTI reported late yesterday. 

Bogsch added that the expansion, which is expected to raise headcount at the plant by 125, is scheduled to be finished in 2018. 

The plant that will be expanded was established in 2012 for HUF 25 bln and currently employs a staff of 200 highly-qualified experts, Debrecen mayor László Papp said at the press conference, MTI reported.

Bogsch noted that Richter is the sole company in the region that conducts original pharmaceutical and biotechnology research, on which it spends 12% of its revenue, or more than HUF 40 bln a year, MTI reported.

The pharmaceutical company, which has operations abroad as well, employs more than 11,000 people, including approximately 5,000 in Hungary. Richter had a revenue of more than HUF 365 bln in 2015, Bogsch added, noting that the company has 1,000 researchers working on developments across five continents, MTI reported.

In terms of R&D spending, Richter takes 178th place in Europe, 23rd place among pharmaceutical companies and 604th on the global list of 2,500 companies, MTI cited Bogsch.

Earlier reports suggested that the Hungarian government is supporting Richter’s expansion with a contribution of HUF 5 bln.

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