Gedeon Richter Media Richter publishes Q3 results
Richter publishes Q3 results
12/11/2024
Sustained momentum and another major strategic move in Q3.
  • Pharma revenues grew by 15% to HUF 214bn in Q3 2024, bringing Q1-Q3 2024 pharma revenues to HUF 627bn (EUR 1.6bn), up 14.5% YoY, as all four business units achieved double-digit sales growth. FX-adjusted revenue growth was 12%.
  • Net profit increased by 43% to HUF 175bn in Q1-Q3 2024 on improving operating profitability and the lack of FX losses.
  • A new discovery, co-development and license agreement to advance novel targets for the potential treatment of neuropsychiatric conditions with AbbVie marks another major strategic move this year.
  • For the full-year both pharma revenues and Clean EBIT should come in closer to the lower end of the unchanged guidance range (EUR 2.15-2.25bn and EUR 725-750mn). The expected R&D milestone income, the lower Vraylar guidance and the impact of the M&A deals may broadly offset each other at EBIT level.

 

Budapest, 12 November 2024 - Gedeon Richter Plc. (“Richter”) announced today its Q1-Q3 2024 financial results.

Pharma revenues grew by 15% to HUF 214bn in Q3 2024, bringing Q1-Q3 2024 pharma revenues to HUF 627bn (EUR 1.6bn), up 14.5% YoY. Excluding currency changes (ex-FX), revenue growth was 12% in Q1-Q3, within the FY 2024 guidance range. The weaker HUF provided some support for reported sales across all segments. All four business units achieved double-digit sales growth in the first nine months of the year.

  • CNS revenues increased by 21% YoY, as the royalty income from Vraylar® rose by 20%, while Reagila® sales were up by 28% as the product continued to grow in Richter’s own network and at other partners too.
  • Women’s Healthcare revenue growth reached 13% in Q1-Q3 2024 YoY despite somewhat slower dynamics in Q3. The timing of shipments – which boosted H1 sales – negatively impacted on sales in the APAC (China) region, LatAm and the US in Q3. European sales growth remained impressive in Q3 at 20%, driven by the leading brands (Drovelis®, Ryeqo®, Lenzetto®, Cyclogest® and EVRA®).
  • BIO revenues maintained their robust 20%+ YoY growth, as both CDMO and teriparatide sales rose at double-digit rate, the latter also supported by royalty contribution from the teriparatide asset acquisition.
  • GenMed growth further accelerated in Q3, bringing the Q1-Q3 increase to over 10%. The impact of volume/mix was the main driver, but the price impact was also positive, and FX is now a revenue tailwind.
  • The R&D pipeline has seen major progress recently, as the new R&D collaboration agreement with AbbVie boosted the pre-clinical pipeline, while RGH-932/ABBV-932 entered Phase 2 clinical stage in Bipolar Depression indication by achieving the first subject dosed in October.

Gross profit (pharma) grew by 13% to HUF 436bn, while gross margin slightly declined (-0.9ppt) to 69.5% in Q1-Q3 2024.

Clean EBIT (pharma) rose by 18% to HUF 209bn in Q1-Q3 2024. If adjusting for FX (ex-FX) Clean EBIT reached HUF 205bn (EUR 537mn). CNS and WHC were the major drivers behind improving profitability in Q1-Q3 2024 and BIO losses also narrowed, while GenMed was a steady contributor.

Reported EBIT came in at HUF 190bn in the first nine months, the difference to Clean EBIT mostly attributable to inventory impairment charges and provisions.

Net profit (attributable to the owners of the parent) amounted to HUF 175bn in Q1-Q3 2024, up by 43% YoY. The improvement was driven by stronger operations and the lack of FX losses in 2024.

Free cash flow (before M&A) amounted to HUF 164bn in Q1-Q3 2024, more than doubling YoY on higher operating cash flow and no FX losses; no major cash outflow took place in Q3, thus net cash increased, partly offsetting the large cash outflow seen in H1 2024 on the back of the M&A transactions.

A major strategic agreement was signed, and other important events took place in the last three months. A major capacity expansion was completed in Bovenau, Germany with a new cutting-edge biopharmaceutical cGMP facility added to the site. The future biosimilar portfolio also received a boost when Richter signed an exclusive commercialization and license agreement with Bio-Thera for a biosimilar candidate to Stelara® (ustekinumab) for European markets. As a major appreciation of the quality of science behind the CNS original research, Richter signed a new discovery, co-development and license agreement with AbbVie to advance novel targets for the potential treatment of neuropsychiatric conditions. Richter will receive an upfront payment of USD 25mn, along with potential development, regulatory and commercialization milestones and sales-based royalties.

 

Gábor Orbán, CEO commented the results:

“Our recent financial results reflect continued strong momentum. Double-digit growth in revenues across the board and an even stronger increase in profitability as costs are kept in check, except for R&D where strategic progress requires increased funding.

The last three months again kept us very busy: while working hard to set up our new women’s healthcare R&D hub in Belgium, broadening our biosimilar portfolio, adding to our biological manufacturing capability and moving a key CNS project into phase-2 trials, we have also announced our third major strategic move of this year. The new R&D collaboration with AbbVie further aligns our preclinical discovery platform with Abbvie’s global clinical and commercial ambitions in neuropsychiatry, it provides external validation to our science and defines the roadmap for our CNS original research for many years to come.”

 

About Gedeon Richter Plc.

Gedeon Richter Plc. (www.gedeonrichter.com), headquartered in Budapest/Hungary, is a major pharmaceutical company in Central Eastern Europe, with an expanding direct presence in Western Europe, China, Latin America, and Australia. Having reached a market capitalization of EUR 4.3bn (USD 4.7bn) by the end of 2023, Richter's consolidated sales were approximately EUR 2.1bn (USD 2.3bn) during the same year. The product portfolio of Richter covers many important therapeutic areas, including Women's Healthcare, Central Nervous System, and Cardiovascular areas. Having the largest R&D unit in Central Eastern Europe, Richter's original research activity focuses on CNS disorders. With its widely acknowledged steroid chemistry expertise, Richter is a significant player in the Women's Healthcare field worldwide. Richter is also active in biosimilar product development.

 

For further information:

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