Gedeon Richter (company)

Gedeon Richter Plc.

Gedeon Richter Headquarters in Budapest
Company type	Public
Traded as	BPSE:  RICHTER BUX Component
Industry	Biotechnology Pharmaceuticals
Founded	1901
Founder	Gedeon Richter
Headquarters	47°28′6.90″N19°8′55.17″E / 47.4685833°N 19.1486583°E / 47.4685833; 19.1486583 , Budapest
Area served	Worldwide
Key people	Erik Bogsch (Chairman) Gábor Orbán (CEO)
Products	Medicines Pharmaceuticals
Revenue	US$ 2.31 billion (2022)
Operating income	US$ 276 million (2018)
Net income	US$ 121.8 million (2018)
Total assets	US$ 2.7 billion (2018)
Total equity	US$ 2.3 billion (2018) (on 288.9 USD/HUF)
Number of employees	12,696 (2018)
Subsidiaries	Helm BioTec Medimpex Preglem
Website	www.gedeonrichter.com
Footnotes /references [1] [ independent source needed ] [2] [ independent source needed ]

Gedeon Richter Plc. is a European multinational pharmaceutical and biotechnology company headquartered in Budapest. It is the largest pharmaceutical company in Central and Eastern Europe,^{[ not verified in body ]} with a direct presence in the United Kingdom, ^{[3] [ dead link ]} Western Europe, China, Northern America and Latin America.^{[ not verified in body ]} Richter has the largest R&D unit in Central and Eastern Europe and operations in over 100 countries.^{[ not verified in body ] [4] [ better source needed ]}

Gedeon Richter Plc. has a primary listing on the Budapest Stock Exchange and is a constituent of the BUX Index. It had a market capitalisation of approximately $6.6 billion as of 2018, the third largest of companies with a primary listing on the Budapest Stock Exchange. It has secondary listings on the Luxembourg Stock Exchange. ^{[5] [ independent source needed ][ dead link ]}

Richter sells products for the neuroscience, oncology, women's health and cardiovascular therapeutic areas among others. The company is also active in biosimilar product development. ^[6] The company was established in Budapest by Gedeon Richter (1872–1944), a pharmacist, in 1901.

History

In 1901, pharmacist Gedeon Richter founded the company in Budapest.

Early history

In 1901, the pharmacist Gedeon Richter founded the company, when he first received a license to industrially produce medicines. ^[7]

Initially, small-scale pharmaceutical production took place in the Arany Sas (Golden Eagle) Pharmacy, which still operates today.^{[ citation needed ]} At the time pharmaceutical production on an industrial scale required heavy investments, and large-scale pharmaceutical manufacturing activities were considered to be extremely capital-intensive operations.^{[ citation needed ]} Initially, the laboratory processed extracts from organs of animals and produced organotherapeutic drugs.^{[ citation needed ]}

The plant was built in 1907 in the Kőbánya suburb of Budapest and was Hungary's first pharmaceutical manufacturing plant and regarded as an outstanding technological achievement in its day.^{[ citation needed ]} In compliance with the established international trends of the pharmaceutical industry in those days, the company produced herbal drugs, processed extracts from plants and manufactured synthetic products at a later date.^{[ citation needed ]} The company became a highly recognized manufacturer of lecithin products, antiseptic and febrifuge products, as well as painkillers (Hyperol, Kalmopyrin, and Tonogen, which continue to be in use).^{[ citation needed ]} In 1934, Constant Janssen, of the future Janssen Pharmaceuticals, acquired the distribution rights for Gedeon Richter's products. ^[8]

The company was nationalized in 1948 and remained fully state-owned until 1994. ^[9]

In the 1970s, chemists at the Gedeon Richter Chemical Works in Budapest discovered the brain enhancing drug vinpocetine, ^[10] which continues to be used in treatment of cerebrovascular disorders. ^[11]

In 1995 Gedeon Richter signed a contract with Danco Laboratories to market an abortion pill mifepristone in the USA. Danco resolved to contracting Gedeon, because its prior attempts to find a US distributor failed due to "the politically volatile climate surrounding abortion in this country [the USA]." ^[12] Facing a strong opposition from the US pro-life groups, Gedeon decided in 1997 to end its efforts to place mifepristone on the U.S. market. On May 9, 1997 Danco filed a lawsuit against Gedeon, because they lost over $200 million due to the Gedeon's breach of contract. ^[13]

Recent history

In May 2006 Gedeon Richter signed a development and supply agreement with the US-based company Repros Therapeutics to produce Proellex. ^[14] In July 2007 Gedeon Richter signed a contract with Barr Pharma for the production of terbinafine, originally Novartis' Lamisil, where Barr paid Gedeon Richter a royalty for distributing the product in the U.S. ^[15]

From July 2008 - April 2012, the company constructed a new manufacturing facility ($110 million) in Debrecen. ^[16]

In October 2010, Gedeon Richter acquired 100% of a private Swiss biopharmaceutical company, PregLem, for CHF 445 million (€337 million). ^[17] PregLem is focused on the treatment of gynecological conditions and infertility. ^[18]

In 2015, Stada Arzneimittel AG and Gedeon Richter signed a license and distribution agreement to commercialize Richter's biosimilar Pegfilgrastim in Europe. According to the agreement Stada receives non-exclusive distribution rights for the area of geographical Europe (excluding Russia), while Richter retains its rights to distribute and market biosimilar Pegfilgrastim worldwide. ^[19]

In January 2017, William de Gelsey resigned as chairman of the board of Gedeon Richter. He was replaced by former CEO Erik Bogsch, who served as a chief executive officer of Gedeon Richter from 1992 to November 2017. ^[20] As the new chief executive officer he appointed Gabor Orban, a former fund manager, government official and Bogsch's deputy since 2016. De Gelsey remained to be a member of the board until his passing. ^{[21] [22]}

In April 2017, Evestra signed a collaboration partnership agreement with Gedeon Richter. ^[23] In February 2019, Gedeon Richter and Pantarhei Bioscience signed a license and supply agreement for the commercialization of a novel combined oral contraceptive. ^{[24] [ dead link ]}

In September 2018 the company started collaborating with the company Mithra Pharmaceuticals  [ fr ] to distribute its contraceptive, Estelle, in Europe and Russia. ^[25]

Richter's atypical antipsychotic, Reagila, containing the active ingredient cariprazine, was awarded the prize of Medicine of the Year 2019 by the Hungarian Society for Experimental and Clinical Pharmacology (MFT). ^{[26] [27]}

Corporate affairs

Organization and operations

As if April 2019, Gedeon Richter had subsidiaries in various countries: Gedeon Richter Polska, Gedeon Richter Romania and Gedeon Richter RUS are regional production subsidiaries. Richter-Themis Medicare (India) (51% Gedeon Richter, 49% Themis), Richter-Helm BioLogics and BioTec (Germany), Mediplus N.V. (Curaçao), Gedeon Richter Mexico, S.A.P.I. de C.V., Gedeon Richter Do Brasil Importadora, Exportadora E Distribuidora S.A. and Gedeon Richter Columbia S.A.S. are international subsidiaries in production and distribution. ^{[28] [ independent source needed ]}

Production building of the company in Budapest

As of this date,^{[ when? ]} the corporation has three plants: the headquarters in Budapest,^{[ citation needed ]} a subsidiary in Dorog (operating since 1967),^{[ citation needed ]} and a biotechnology plant in Debrecen (operating since 2012).^{[ citation needed ]} The company has joint ventures in India with Themis Medicare, ^{[29] [ independent source needed ]} and in Germany, with Helm AG. ^{[29] [ independent source needed ]}

Leadership structure

The company's chief governing body is the board of directors. The board's chairman is Erik Bogsch, who had served as chief executive officer since 1992 and was succeeded by Gábor Orbán as CEO in November 2017. ^{[21] [22]} The board members are Gábor Gulácsi, János Csák, Ilona Hardy, György Bagdy, Csaba Lantos, Anett Pandurics, Bálint Szécsényi, Szilveszter E. Vizi, Kriszta Zolnay. ^{[20] [ independent source needed ][ needs update ]}

The company's other governing bodies are the executive board and the supervisory board; as of June 2019, the executive board was led by Erik Bogsch, other members being Gábor Orbán, Gábor Gulácsi, István Greiner, Tibor Horváth, and György Thaler. ^{[30] [ independent source needed ]} As of April 2019, the supervisory board was led by Róbert Jonathán Bedros, with other members being Attila Chikán, Klára Csikós Kovácsné, Zsolt Harmath, Éva Kozsda Kovácsné, and Dale A. Martin. ^{[31] [ independent source needed ][ needs update ]}

Shareholder structure

As of December 31, 2018, Gedeon Richter's shareholder structure is: ^{[5] [ independent source needed ][ dead link ]}

• 66% - International investors
• 25% - Hungarian State (Hungarian State Holding Company, MNV Zrt.)
• 9% - Domestic investors

In 2018, the dividends approved by the shareholders of Gedeon Richter were EUR 41 million in total. ^{[32] [ independent source needed ]}

Company philanthropy

In 2006, Gedeon Richter gifted a large sum to the International Union of Pure and Applied Chemistry (IUPAC), thereby establishing the IUPAC–Richter Prize in Medicinal Chemistry. The $10,000 prize is awarded every second year to an internationally recognized scientist (normally a medicinal chemist), whose research or publications have made a significant contribution to the practice of medicinal chemistry. The prize was initiated to honor and highlight the central role of medicinal chemistry in improving human health. ^[33]

Awards and recognition

In 2017, Gedeon Richter was recognized by the Hungarian Innovation Foundation with the Innovation Grand Prize for the development of Cariprazine, an antipsychotic drug which is used in the treatment of schizophrenia and bipolar disorders. ^[34]

See also

• Economy of Budapest
• Economy of Hungary
• Science and technology in Hungary

Further reading

• Ell, Alexandra (30 December 2025). "A Name Remembered, a Death Disappeared: Gedeon Richter". Times of Israel (TimesofIsrael.com). Retrieved 17 January 2025.
• Tang, Elizabeth & AbbVie/Gedeon Richter PR staff (24 October 2024). "AbbVie and Gedeon Richter Announce Collaboration in Neuropsychiatric Diseases" (press release). AbbVie News Center. Retrieved 17 January 2025.
• AbbVie PR staff (12 March 2022). "AbbVie, Gedeon Richter Ink Pact to Develop [and] Commercialize Novel Dopamine Receptor Modulators to Treat Neuropsychiatric Diseases". AbbVie News Center. Archived from the original (press release, reposting) on 17 March 2023. Retrieved 17 January 2025– via Pharmabiz.com.
• Gedeon Richter PR staff (7 July 2021). "Gedeon Richter's First Participation in the World Congress of Biological Psychiatry" (press release, reposting). Gedeon Richter News Center. Retrieved 17 January 2025– via PRNewswire.co.uk.
• Federated Hermes Staff (10 May 2021). "Global Emerging Markets Positive Impact Case Study: Richter Gedeon Nyrt". Federated Hermes (hermes-investment.com). Archived from the original (fund investment highlight, promotional) on 5 December 2022. Retrieved 17 January 2025. In this case study, we demonstrate how [Federated Hermes] current holding Richter Gedeon Nyrt is creating positive impact aligned to the [UN's] Sustainable Development Goals (SDGs).

References

1. "Annual Report 2018" (PDF). RG. Retrieved 15 Apr 2018.^{[ independent source needed ]}
2. "Consolidated Financial Statements 2018" (PDF). RG. Retrieved 6 May 2018.^{[ independent source needed ]}
3. "Gedeon Richter UK Ltd". Pharmacy In Focus. Retrieved 2023-11-16.^{[ dead link ]}
4. TPL Staff (3 August 2020). "US Success Offsets Coronavirus Impact for Gedeon Richter" . The Pharma Letter (TPL, ThePharmaLetter.com). Retrieved 17 January 2025.
5. "Gedeon Richter Company Report (2018)" (PDF).^{[ independent source needed ]}
6. "Actavis and Gedeon Richter Plc. Announce FDA Receipt of NDA Resubmission for Cariprazine". actavis.com/. 6 Jan 2015. Archived from the original on 16 January 2015. Retrieved 13 Jan 2015.
7. "Gedeon Richter". www.pharmunion.am. Archived from the original on 2019-05-06. Retrieved 2019-05-06.
8. "A deer in our heart". 12 May 2014. Archived from the original on 17 January 2015. Retrieved 13 Jan 2015.
9. "Gedeon Richter: Our History" . Retrieved 7 July 2024.
10. "Firm Hopes to Market New 'Memory' Drug". Los Angeles Times. 1986-04-15. ISSN   0458-3035 . Retrieved 2019-04-10.
11. Zhang YS, Li JD, Yan C (January 2018). "An update on vinpocetine: New discoveries and clinical implications". European Journal of Pharmacology. 819: 30–34. doi: 10.1016/j.ejphar.2017.11.041 . PMC   5766389 . PMID   29183836.
12. Murphy, Caryle (1997-06-12). "ABORTION PILL'S U.S. SPONSOR SUING HUNGARIAN DRUG FIRM". Washington Post. ISSN   0190-8286 . Retrieved 2023-11-16.
13. "ABORTION PILL'S U.S. SPONSOR SUING HUNGARIAN DRUG FIRM". Washington Post. 1997-06-12. ISSN   0190-8286 . Retrieved 2019-06-13.
14. "(BW) Gedeon Richter and Repros Therapeutics Enter into Supply Agreement for Repros' Drug Proellex(TM)". Houston Chronicle. 2006-05-23. Retrieved 2019-05-28.
15. Reuters Staff (2007-07-02). Barr Pharma Announces That Gedeon Richter, Plc. Has Received Final US FDA Approval . Reuters.com . Retrieved 2019-06-19.
16. "Gedeon Richter Biopharmaceutical Plant". Pharmaceutical Technology. Retrieved 2019-04-15.
17. "Richter acquires Swiss-based PregLem". bbjonline. Archived from the original on 17 February 2013. Retrieved 7 October 2010.
18. "Richter Announces the Acquisition of PregLem". Fierce Biotech. 7 October 2010. Retrieved 2019-06-19.
19. "STADA Arzneimittel AG | Press Releases". STADA. Archived from the original on 2019-04-26. Retrieved 2019-04-26.
20. "Gedeon Richter Plc. - Board of Directors". www.richter.hu. Archived from the original on 2018-08-02. Retrieved 2019-06-13.^{[ independent source needed ]}
21. "Baron William de Gelsey Resigns As Chairman Of Richter's Board Of Directors". Hungary Today. 2016-12-06. Retrieved 2019-04-26.
22. "Plan B Pill Maker Replaces CEO After 25 Years". Bloomberg.com. 2 October 2017. Retrieved 2019-04-26.
23. "BRIEF-Evestra has signed a collaboration partnership agreement with..." Reuters. 2017-04-06. Retrieved 2019-04-30.
24. "Yvette Zimmerman new CEO Pantarhei Bioscience: "We find safe and effective new treatments using existing human molecules."". 22 January 2019. Retrieved 2019-04-30.^{[ dead link ]}
25. "Mithra Pharmaceuticals and Gedeon Richter set to market Estelle". Wallonia.be. Retrieved 2019-06-25.
26. "Hungarian-developed antipsychotic drug named Medicine of the Year". semmelweis.hu. 2020-06-12. Retrieved 2025-05-27.
27. "Medicine of the year award recipients | Hungarian Society for Experimental and Clinical Pharmacology" . Retrieved 2025-05-27.
28. "Subsidiaries Manufacturing subsidiaries". www.richter.hu. Retrieved 2019-04-10.^{[ independent source needed ]}
29. "English Home". www.richter.hu. Retrieved 2018-12-19.^{[ independent source needed ]}
30. "Executive Board". www.richter.hu. Retrieved 2019-06-13.^{[ independent source needed ]}
31. "Supervisory Committee". www.richter.hu. Retrieved 2019-04-30.
32. "Gedeon Richter Annual Report 2018" (PDF). richter.hu. 2018-12-31. Retrieved 2019-06-25.^{[ independent source needed ]}
33. "IUPAC-Richter Prize in Medicinal Chemistry". IUPAC | International Union of Pure and Applied Chemistry. Retrieved 2019-04-12.
34. "Gedeon Richter Wins 2017 Innovation Grand Prize". Hungary Today. 2018-03-29. Retrieved 2019-04-12.

External links

Media related to Gedeon Richter Ltd. at Wikimedia Commons