Gedeon Richter reports revenue beat, raises guidance above expectations

Gedeon Richter Plc, the Hungarian pharmaceutical company, reported fiscal year 2025 results on Friday that exceeded analyst expectations, with pharmaceutical revenues reaching HUF914 billion and clean EBIT growing 14% on a constant exchange rate basis, prompting the company to raise its guidance above market forecasts. The company's financial performance surpassed both its previous guidance and consensus estimates, with clean EBIT growth significantly outperforming the initially projected 8% to 10% range. This strong performance was driven by particularly strong results in the fourth quarter across multiple divisions, including biosimilars and women's healthcare products. The company's women's healthcare segment posted impressive double-digit growth of 14.8% year-over-year, led by focus brands including Ryeqo, which grew 90.5%, and Drovelis, which increased by 47%. The fourth quarter showed particularly strong performance with 22% year-over-year growth, supported by delivery timing in Asia-Pacific and a low base in Eastern Europe. The biosimilars division also performed well, growing revenues 19% on a constant exchange rate basis, with contract development and manufacturing organization revenues increasing 21% for the year. The central nervous system segment grew revenues 6.6%, with Vraylar revenues up 11% and Reagila royalties increasing 6.2%. While generic medicines segment showed some weakness earlier in the year, it recovered in the fourth quarter after the company restarted supply of Mydeton and Mydocalm in November following earlier destocking. Looking ahead, Gedeon Richter issued guidance for high single-digit constant exchange rate growth in both pharmaceutical revenues and clean EBIT for fiscal year 2026, despite noting a 5 percentage point foreign exchange headwind at current rates. The company plans to launch several new products, including ustekinumab in early fiscal 2026 and tocilizumab later in the fiscal year, following the successful launch of denosumab biosimilars during fiscal 2025. Gedeon Richter expects research and development spending to represent approximately 11% of sales in fiscal 2026, with roughly 100 million euros in restructuring costs anticipated between 2026 and 2030 related to enterprise resource planning and cloud upgrades.