Gedeon Richter PLC

First-half constant-currency revenue grew 8.7%, while constant-currency Clean EBIT increased 21%. Reported gross margin came down to 69.5%, and reported Clean EBIT was HUF 151.8 billion, up 3% year on year in H1 2026. Net profit was HUF 103.5 billion, and FX pressure remained material, including more than HUF 32 billion of FX loss in Q2. Free cash flow was described as record high, CapEx was HUF 10 billion in the first half, and restructuring costs were HUF 4.5 billion. For the full year, management upgraded 2026 Pharma Clean EBIT to double-digit growth on a constant-currency basis, and reiterated close to 10% constant-currency revenue growth ambitions; they also said FX headwind for the full year may still hold at 7% to 8 percentage points, though the second half should be less painful if rates stay where they are.

Gabor Orban’s tone was confident and upbeat, with the central message that Q2 showed stronger underlying momentum than the reported FX-impacted numbers suggested. He emphasized that multiyear restructuring and efficiency actions are now feeding through, especially in ex-CNS profitability, and that the company is moving closer to its long-term margin goals. He also framed new launches, Phase II progression in CNS, and API consolidation as building blocks for future growth and competitiveness.

Laszlo Kovacs focused on margin recovery, cost discipline, and cash generation. He said gross margin was 69.5% in H1, operating expenses fell 6%, R&D declined 6.5% while staying around 10% of Pharma revenue, and sales and marketing fell 7%; he also noted HUF 4.5 billion of restructuring costs. He highlighted strong operating cash flow and record free cash flow, with HUF 10 billion of CapEx in H1 and the remaining dividend of almost HUF 31 billion due in Q3. On capital allocation, he said the board and shareholders support dividends, but management’s primary goal is long-term value creation through licensing and M&A.

Analysts pressed on Women’s Healthcare profitability, the API restructuring benefit, GenMed’s weakness in Eastern Europe/Russia, GLP-1 strategy, biosimilar impairments, and the 932 CNS project with AbbVie. Management said Women’s Healthcare’s 18.5% Clean EBIT margin was helped by product mix and lower-than-expected R&D spend so far, but should normalize lower later in the year. On GenMed, they said the weakness was driven by legacy portfolio erosion, distributor inventory rationalization, and market shocks in places such as Uzbekistan and Kazakhstan, and that recovery should start next year. On AbbVie’s 932 and other CNS programs, they said the parties are still evaluating Phase II data and that they are not waiting for GAD results to decide on bipolar I development.