Hungarian pharmaceutical giant Richter Gedeon Nyrt. has announced it expects revenue from its pharmaceutical business to grow in the high single digits this year, following improved cost efficiency and profitability across all divisions, CEO Gábor Orbán said after the company released its latest financial results.
Speaking at an online briefing, Orbán emphasised that Richter focuses less on quarterly fluctuations and more on performance over multi-year horizons. According to him, while global trade tensions weighed on the company during 2025, the outlook for the current year is expected to be more stable.
“Commercial tensions defined much of last year,” he noted, adding that the company expects 2026 to be driven more by underlying business performance than geopolitical pressures.
Women’s Health Remains a Key Growth Driver
One of Richter’s strongest and fastest-growing segments continues to be women’s health, which has become a cornerstone of the company’s international strategy.
Thanks to its innovative portfolio in this field, Richter achieved revenue growth in pharmaceutical manufacturing that met its strategic targets. Adjusted for exchange-rate effects, pharmaceutical sales increased 8.3% last year to nearly €2.31 billion.
Deputy CEO László Kovács said the company expects particularly strong momentum in the women’s health portfolio. Key products in this segment could see around 30% growth, reflecting both strong demand and expanding international market presence.
At the same time, the company plans to introduce new products in biotechnology, aiming to support further revenue growth in the coming years.
Preparing for the Next Patent Cycle
Richter is also positioning itself for the next wave of pharmaceutical competition.
In its General Medicines (generic drugs) business, the company is strengthening internal capabilities and strategic partnerships in anticipation of a series of major patent expirations expected in the 2030s. Such expirations typically open the door for generic manufacturers to enter markets with lower-cost alternatives.
Meanwhile, the company expects the biotechnology division’s financial balance between revenues and expenditures to stabilise by the end of 2027, suggesting that earlier heavy development investments could begin to pay off.
Growth Across All Regions
Richter reported revenue growth across every major market in 2025.
Western Europe performed particularly strongly, with sales rising 13%, while revenues increased 8% in North America and 7% across Central and Eastern Europe.
The final quarter of the year was especially strong. Revenue climbed 12.5% year-on-year to HUF 245.2 billion, marking a quarterly record for the company.
Innovative business segments contributed significantly to that performance, accounting for 13% of revenue growth, while essential care medicines added 10%.
Cost Discipline and R&D Adjustments
The company also reported significant cost improvements. Operating expenses fell 18% in the fourth quarter and 2% across the full year, reflecting strict cost control and somewhat lower research and development spending.
Research and development expenditure declined 8% during 2025, and 20% in the final quarter, mainly due to reduced spending in the biotechnology segment. Even with this decline, R&D still accounted for around 10% of total revenue, underlining Richter’s continued focus on innovation.
Currency Pressures Hit Bottom Line
Despite stronger operational performance, exchange-rate volatility weighed on overall profitability.
Richter recorded HUF 25.3 billion in currency losses in 2025, compared with a gain of nearly HUF 13 billion the previous year. Because the company generates roughly 93–94% of its revenue from exports, currency fluctuations remain an unavoidable factor in financial results.
As a result, net profit fell slightly to HUF 232.3 billion, about 3% lower year-on-year, even though operating profit increased 12%.
Sustainability Efforts Continue
Beyond financial performance, the company also highlighted progress on environmental goals.
Over the past eight years, Richter has prioritised reducing greenhouse gas emissions. In 2025, emissions across the group declined by nearly 10%, largely thanks to energy-efficiency improvements and technological upgrades at manufacturing sites.
The company aims to reduce greenhouse gas emissions by 40% by 2030 compared with 2021 levels.
Market Performance
Shares of Richter are listed in the premium category of the Budapest Stock Exchange. The stock closed the previous trading session at HUF 11,830, down slightly by 0.67%.
Over the past year, the share price has fluctuated between HUF 9,380 and HUF 11,940, reflecting both market volatility and the company’s steady operational performance.
Looking Ahead
Taken together, Richter’s results suggest a company entering a new phase: stronger cost discipline, continued innovation in key therapeutic areas, and growing international sales.
If its projections hold, the combination of expanding women’s health products, new biotech launches, and preparation for future generic opportunities could keep Richter on a stable growth path in the years ahead.
For one of Hungary’s most globally recognised companies, the message from management is clear: the strategy is not about short-term gains, but about building sustained growth over the long run.