Concorde Securities - Chemical Works of Gedeon Richter Plc (RICHTER) Richter Gedeon - The dip looks alluring but Esmya remains of great concern

Report

Concorde Securities

Attila Vago

Richter Gedeon - The dip looks alluring but Esmya remains of great concern

We upgrade our rating on Richter to Accumulate from Neutral while cutting our 12-month TP from HUF 7,400 to HUF 6,264 a share due to elevated concerns triggered by the European Medicines Agency’s Pharmacovigilance Risk Assessment Committee (PRAC) reviewing the benefits and risks associated with Richter’s flagship product Esmya (uterine fibroids). Richter states that there is no evidence that Esmya could be the cause of any liver injury.

15/02/2018 13 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 - The dip looks alluring but Esmya remains of great concern

Impressive guidance in line with our estimates

More than a single drug company

Q3 results were strong despite FX headwinds and extra taxes

SECURING ENERGY INDEPENDENCE: OMV PETROM'S OFFSHORE DEVELOPMENT AND RENEWABLE EXPANSION

Model update – Favorable news flow ahead!

Massive export growth ahead

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