Gedeon Richter Tops Revenue Estimates and Lifts 2026 Outlook Amid Strong Biosimilars and Women's Health Sales

Hungary's Gedeon Richter Plc (BUD:RGEDF) surprised on the upside for fiscal year 2025, posting pharmaceutical revenues of HUF914 billion. This result edged past analysts' expectations and came alongside a clean EBIT growth of 14% when adjusted for exchange rates, beating the company's prior forecast of 8% to 10% growth.

The pharmaceutical division was propelled by an 8.3% steady climb, largely thanks to a robust fourth quarter. This surge was largely attributed to solid gains in biosimilars and women's healthcare, putting the latter in the spotlight as a standout performer with double-digit growth.

In particular, women's health drove remarkable advances. Its sales soared 14.8% year-over-year, fueled by key brands like Ryeqo, which nearly doubled with a 90.5% increase, and Drovelis rising by 47%. The fourth quarter painted an even stronger picture, with growth hitting 22% compared to the previous year, helped by timing factors in Asia-Pacific and a modest base in Eastern Europe.

Biosimilars weren't left behind, expanding revenues by 19% adjusted for currency swings. Contract development and manufacturing segments thrived, registering a 21% jump. New product launches also colored 2025, with denosumab biosimilars hitting the market, and early 2026 is set to bring ustekinumab, followed by tocilizumab later in the year.

The central nervous system segment posted a more modest but solid 6.6% revenue increase, led by Vraylar sales rising 11% and royalties from Reagila up 6.2%. This segment's clean EBIT margin remained strong at 87.3%, bolstered by milestone payments climbing to HUF13.6 billion.

Back on the generic medicines front, revenues dipped slightly by 0.5% in constant currency but rebounded in the final quarter. The restart of Mydeton and Mydocalm supply lines in November helped reverse earlier weakness caused by inventory drawdowns.

Looking ahead, Gedeon Richter lifted its guidance for 2026, forecasting high single-digit growth for both pharmaceutical revenues and clean EBIT on a constant currency basis. They also flagged an expected 5 percentage point drag due to foreign exchange at current rates.

Research and development remain a key focus, with spending projected at about 11% of sales for 2026. The company also anticipates restructuring costs of approximately €100 million between 2026 and 2030 linked to updates in enterprise resource planning and cloud technology.

This strong showing and upbeat outlook underline Gedeon Richter's resilience in a complex global pharma market, underscored by product launches and robust divisions offsetting currency challenges.