Gedeon richter, a multinational pharmaceutical company, announced robust financial results for the first quarter of 2025. Pharmaceutical revenue reached 220 billion Hungarian forints (HUF), marking a 10% increase compared to the same period last year.Adjusting for exchange rate movements, the growth rate was approximately 6%, slightly below the company’s annual expectations.

The company attributed the slightly lower-than-expected growth to an unusually high base in the previous year, notably in the gynecological business and the Asia-Pacific (APAC) region. This strong comparative period partially obscured the current growth, which remains positive.

key Business Segment Performances

• Central Nervous System (CNS): Achieved a 13% annual growth, primarily driven by a 14% increase in Vraylar royalties. Sales of Reagila remained relatively stable, impacted by delivery schedules and temporary restraints from Australian partnerships.
• Gynecological Products: Turnover increased by 6%. While this growth appears modest due to significant pre-transportation in the first half of 2024, particularly in contraceptives and menopause treatments in the APAC region and North America, strong underlying dynamics persist. Western and Eastern Europe experienced double-digit growth, fueled by key brands such as Ryeqo, Dovelis, Lenetto, and Evra.
• Biotechnology: Revenues showed a double-digit increase, primarily driven by contract development and manufacturing institution (CDMO) sales. However, teriparatide traffic stagnated due to temporary reduced shipments to partners.
• General Medicines: Demonstrated a 12% annual growth. This success was attributed to a lower base in the previous year, favorable foreign exchange rates, price effects, and increasing sales volume. Even without exchange rate effects, the segment showed a 9% increase.

Financial Highlights

Gedeon Richter demonstrated stable financial performance in the first quarter of 2025, supported by well-defined market drivers.

• Gross profit for the pharmaceutical segment increased by 10% to HUF 154 billion, although the gross margin slightly decreased by 0.2 percentage points to 70%.
• Adjusted earnings before interest and taxes (EBIT) increased by 8% to HUF 69 billion, equivalent to EUR 167 million when adjusted for exchange rate effects, representing a 4% increase year-over-year.
• The CNS business lead profit expansion, driven by the double-digit growth of Vraylar sales. The general medicine business also contributed significantly. Though,the gynecological business’s performance was somewhat restrained by the high base from the previous year and increased research,marketing,and sales expenses. The biotechnology segment remained loss-making.
• Reported EBIT was HUF 68 billion, a 7% annual increase. After-tax profit for the parent company’s owners remained virtually unchanged at HUF 68 billion.

Free Cash Flow

The company reported outstanding free cash flow development, with a pre-transactions value of HUF 60 billion, a 14% increase. This was facilitated by improved operating profitability, lower capital investment, and more moderate growth of net working capital. The absence of major capital outflows, such as acquisitions or dividend payments, further boosted the company’s net cash position.

Strategic Developments and future Outlook

I am proud of the vital results we have achieved in recent months in implementing our basic preparation strategy. We received a positive CHMP opinion on our Denosumab biosimilations, submitted a pedigree application for the biosimilar to tocilizumab in Europe, signed a co-development and licence agreement with adalvo on a semagglutide injection, and introduce products to treat multiple sclerosis in Europe in europe

Gábor Orbán, CEO of Gedeon Richter

According to Gábor Orbán, CEO, these strategic steps aim to broaden patient access to medicines. The company’s general meeting approved a dividend of HUF 93 billion from the 2024 tax profit,scheduled for payment in june 2025.

gedeon Richter remains committed to making its state-of-the-art medicines accessible to a wider patient base. Key initiatives include the adoption of Denosumab’s biosimilar positive Committee for Medicinal Products for Human Use (CHMP) opinion, the submission of the Tocilizumab registration request, and the joint development agreement with Adalvo for a semaglutide injection. The introduction of anti-multiple sclerosis preparations further strengthens the company’s portfolio.