Concorde Securities - Chemical Works of Gedeon Richter Plc (RICHTER) Richter Gedeon - Successful clinical trials and higher sales and margin guidance

Report

Concorde Securities

Attila Vago

Richter Gedeon - Successful clinical trials and higher sales and margin guidance

We raise our 12-month TP to HUF 10,900 a share from HUF 10,107 for 3
main reasons: 1) rolling over our TP; 2) incorporating higher risk-adjusted
estimate for royalty income on Vraylar (attributing to a higher probability
for Vraylar receiving approval for the use as adjunctive therapy for MDD),
and 3) the future value contribution from new product launches
(Relugolix and Estelle) as well as the contraceptive patch, Evra.

11/11/2021 12 EN

Underlying

Chemical Works of Gedeon Richter Plc

Chemical Works of Richter Gedeon is a multinational pharmaceutical company that is engaged in the research, development, production and marketing and trade of pharmaceutical products. Co.'s activities are divided into two major business segments: Pharmaceutical, including research, development and manufacturing of pharmaceutical products; and Wholesale and Retail including wholesale and retail trade through the distribution chain as well as marketing of its products. Co. is primarily engaged in production of gynecological, cardiovascular and gastroenterological products, antibiotics, antimicotics, OTC and medicines for treatment of the central nervous system.

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HU0000123096 Budapest Stock Exchange Hungary

Provider

Concorde Securities

Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.

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Analysts

Attila Vago

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Richter Gedeon - Successful clinical trials and higher sales and margin guidance

Impressive guidance in line with our estimates

More than a single drug company

Q3 results were strong despite FX headwinds and extra taxes

Solid performance and no surprises from BRD in Q1 2024

Q1 earnings above exp. but guidance has been revised

Petrom delivers on expectations in Q1 2024

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