Gedeon Richter Plc reported fiscal year 2025 results showing higher-than-expected top-line pharmaceutical sales and stronger-than-anticipated clean EBIT. The Hungarian drugmaker recorded pharmaceutical revenues of HUF914 billion and delivered clean EBIT growth of 14% on a constant exchange rate basis, a performance that exceeded both analyst forecasts and the company's earlier guidance.
The company had previously guided for 8% to 10% clean EBIT growth, and the reported expansion outpaced that range. Management said pharmaceutical revenues were slightly above consensus estimates, while clean EBIT not only beat outside expectations but also topped the company's own guidance.
On a constant exchange rate basis, pharmaceutical sales rose 8.3% year-over-year. The fourth quarter showed particularly robust momentum, driven by stronger demand across the biosimilars and women's healthcare divisions. Company commentary highlighted that the women's healthcare segment grew 14.8% year-over-year, led by several focus brands. Ryeqo posted a sharp increase of 90.5%, and Drovelis was up 47%. The fourth quarter alone delivered 22% year-over-year growth for the segment, with management noting delivery timing effects in Asia-Pacific and a low base in Eastern Europe as contributors to that quarter's strength.
The biosimilars portfolio recorded a 19% increase in revenues on a constant exchange rate basis. Contract development and manufacturing organization revenues also expanded, rising 21% for the full year. During fiscal 2025 the company launched denosumab biosimilars and has plans to introduce an ustekinumab biosimilar in early fiscal 2026. Marketing authorization and launch for a tocilizumab biosimilar are expected later in fiscal 2026.
In the central nervous system segment, revenues grew 6.6% on a constant exchange rate basis. Within that category, Vraylar revenues increased 11% while Reagila royalties were up 6.2%. Clean EBIT in the CNS segment rose 8.6%, reaching a margin of 87.3%. That margin included HUF13.6 billion in milestone payments for the year, compared with HUF4.6 billion in fiscal 2024.
The generic medicines division showed a modest decline for the year, with revenues down 0.5% on a constant exchange rate basis. The segment recovered in the fourth quarter, aided by the company restarting supply of Mydeton and Mydocalm in November after a period of destocking earlier in the fiscal year.
For fiscal 2026 Gedeon Richter issued guidance calling for high single-digit constant exchange rate growth in both pharmaceutical revenues and clean EBIT. The company cautioned that, at current exchange rates, it expects a roughly 5 percentage point negative impact from foreign exchange movements.
Looking at investment and restructuring, Gedeon Richter expects research and development spending to amount to approximately 11% of sales in fiscal 2026. The company also anticipates roughly 100 million euros in restructuring costs between 2026 and 2030 associated with enterprise resource planning and cloud upgrades.
Key points
- Fiscal 2025 pharmaceutical revenue reached HUF914 billion and clean EBIT rose 14% on a constant exchange rate basis, exceeding guidance and analyst expectations.
- Strong growth in women's healthcare and biosimilars drove fourth-quarter momentum; Ryeqo and Drovelis were notable contributors.
- Management projects high single-digit constant exchange rate growth in both pharmaceutical revenues and clean EBIT for fiscal 2026 but flags a 5 percentage point foreign exchange headwind at current rates.
Risks and uncertainties
- Foreign exchange exposure - the company expects about a 5 percentage point negative impact at current rates, which could weigh on reported growth.
- Restructuring costs - roughly 100 million euros of restructuring charges are planned between 2026 and 2030 related to ERP and cloud upgrades, which could affect near-term profitability.
- Product launches and authorization timelines - planned launches for ustekinumab and tocilizumab are expected in fiscal 2026, creating execution and timing risk for revenue contributions tied to those rollouts.