Gedeon Richter reports 8% pharma growth in first half 2025
Investing.com -- Hungarian pharmaceutical company Gedeon Richter on Wednesday reported 8% constant exchange rate growth in pharmaceutical revenue for the first half of 2025, driven primarily by its Vraylar antipsychotic medication and women’s healthcare portfolio.
The company posted pharmaceutical revenue of HUF 457.6 billion (€1.13 billion) for the period, which fell 2% below consensus estimates of HUF 466.9 billion. Clean EBIT reached HUF 148.2 billion, representing 15% growth at constant exchange rates, with a margin of 31.8%.
Gedeon Richter’s central nervous system (CNS) segment saw Vraylar revenues increase 14.4% year-over-year, while Reagila royalties grew 3.6% (0.1% at constant exchange rates), with slower performance attributed to timing of shipments.
The segment’s clean EBIT rose 22.5%, achieving an 86% margin in the first half and 90.5% in the second quarter, supported by modest R&D increases and a HUF 4.5 billion milestone payment.
The women’s healthcare segment delivered 12.9% revenue growth (10.2% at constant exchange rates), led by strong performances from Ryeqo (+96.3%) and Drovelis (+65.6%).
Despite this top-line growth, the segment’s clean EBIT declined 17.7%, with margin contracting to 16.4% due to elevated cost pressures, particularly from R&D investments including a new R&D hub in Belgium.
The biosimilars segment grew 11% (8.9% at constant exchange rates), driven by CDMO sales and Teriparatide. Clean EBIT improved to HUF -8.5 billion from HUF -11.0 billion a year earlier, mainly due to a 28% reduction in R&D spending.
Generic medicines revenue increased 7.7% (5.2% at constant exchange rates), with growth led by Poland (+12.5%) and Russia (+23.4%). Clean EBIT in this segment grew 5.2% while margin slightly decreased to 16.7%.
The company noted that foreign exchange impacts and increased taxes caused a 13% year-over-year decrease in earnings per share.
Gedeon Richter reiterated its full-year 2025 guidance, expecting pharmaceutical revenue growth of approximately 10% at constant exchange rates (€2.3-2.4 billion) and clean EBIT growth of around 10%.
Management indicated that 2025 performance will be more weighted toward the second half of the year and noted that milestone income will be significantly lower in 2025 compared to 2024.
The company’s share price stood at HUF 10,460, with Jefferies analysts maintaining a buy rating and a price target of HUF 13,390, representing 28% upside potential.
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