Gedeon Richter revenue exceeds expectations, raises earnings guidance above market expectations

Investing.com - Gedeon Richter Plc (BUD:RICHT) announced its fiscal year 2025 results on Friday, exceeding analyst expectations. Pharmaceutical revenue reached 914 billion Hungarian forints, with adjusted EBIT growing 14% at fixed exchange rates.

This Hungarian pharmaceutical company’s revenue slightly surpassed market consensus, while adjusted EBIT also exceeded both company guidance and analyst estimates. The company previously provided guidance for adjusted EBIT growth of 8% to 10%.

Pharmaceutical revenue grew 8.3% at fixed exchange rates, driven by strong performance in the biosimilar and women’s healthcare segments in the fourth quarter.

The company’s Vraylar product continued to grow, while the generic drug business, despite weak performance earlier in the year, showed signs of recovery in the fourth quarter.

For fiscal year 2026, Gedeon Richter’s guidance indicates that pharmaceutical revenue and adjusted EBIT at fixed exchange rates will both achieve high single-digit growth. The company noted that, at current exchange rates, foreign exchange will have a 5 percentage point negative impact.

Women’s healthcare revenue increased 14.8% year-over-year, achieving double-digit growth mainly driven by key brands, with Ryeqo up 90.5% and Drovelis up 47%.

The fourth quarter was particularly strong, with a 22% year-over-year increase, benefiting from delivery timing in the Asia-Pacific region and low base effects in Eastern Europe.

Biosimilar revenue grew 19% at fixed exchange rates, while contract development and manufacturing organization revenue increased 21% for the full year.

The company launched the biosimilar of Deslorelin in fiscal year 2025 and plans to launch Ustnmonoclonal antibody at the beginning of fiscal year 2026. Marketing authorization and market launch for Tocilizumab are expected to be completed later in fiscal year 2026.

Central nervous system revenue grew 6.6% at fixed exchange rates, with Vraylar revenue up 11% and Reagila royalties up 6.2%. Adjusted EBIT for this segment increased 8.6%, with a profit margin of 87.3%, including milestone payments of 13.6 billion Hungarian forints, compared to 4.6 billion forints in fiscal year 2024.

Generic drug revenue declined 0.5% at fixed exchange rates but showed recovery in the fourth quarter. After early-year destocking, the company resumed supply of Mydeton and Mydocalm in November.

Gedeon Richter expects R&D expenses to account for about 11% of sales in fiscal year 2026. From 2026 to 2030, approximately €100 million in restructuring costs are expected, related to enterprise resource planning and cloud upgrades.

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