Richter Gedeon - Cutting profit estimate for FY2018 but keeping ratin...

We tweaked our estimate for Richter’s FY2018 earnings recognizing that gross margin on pharma sales improved 300 bps YoY from 65% to 68% in Q1-3/18 as a combined result of growing royalty income received from Allergan on the sales of Vraylar in the U.S, an increase in the share of the high margin Chinese businesses, a decrease in the amount of sales proportional royalties and crawl-backs payable in respect of Esmya, lower cost of goods sold related to Bemfola as the negative impact of inventorie...