3 Gedeon Richter Plc. Chemical Works of Gedeon Richter Plc. is a leading Central-Eastern European pharmaceutical company with its headquarters in Hungary. The multinational company is vertically integrated, Richter is engaged not only in the manufacture but the research and development, and marketing of pharmaceutical products, too. The parent company owns manufacturing subsidiaries in five countries; its products are available, through its own distribution network, to the inhabitants of nearly 100 different countries. Richter blends the century-old traditions of Hungarian pharmaceutical production with the high technological standards of modern times. Our main objectives are to deliver advanced medicines to the public, as well as, through our operations, assist in the region’s development, help the growth of Hungarian economy and boost the country’s competitiveness. Corporate social responsibility is a top priority: environment protection, economic and social sustainability are major concerns in the Company’s strategy. On a mission to improve the quality of human life, Gedeon Richter seeks to serve a healthier future generation in the new millennium.
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5 Past, present, future
Richter Group sales 2003-2010 (€ million) 1000
The secret of the Company’s success lies, amongst others,
The young pharmacist always recognized and took
in its pool of experience and invaluable expertise,
advantage of new opportunities, laid great emphasis on
accumulated over more than a century. It was in 1901 that
international relations, the development of pharmaceu
the Company’s founder, pharmacist Gedeon Richter
tical preparations and quality in general. It was not mere luck but top-level expertise and ceaseless innovation that brought and continues to bring about success. Albeit suffering heavy losses, the Company managed to pull through the turbulent 20th century thanks to the unique expertise, excellent workforce and management. Today, Richter has not only succeeded in retaining its
892
942
952
2008
2009
998
794
800 696
600
400
575
592
200
0
2003
2004
2005
2006
2007
2010
influential position in the domestic market but has evolved into one of Central-Eastern Europe’s largest multinational pharmaceutical corporations with a growing
The issue of exchangeable bonds in 2004 and then in 2009
the Richter Group’s dynamic growth, the Company will
presence in CIS nations, the European Union and the
enabled Richter to continue its strategy as the Hungarian
continue to execute significant investments and conclude
United States of America.
state remains a shareholder and continues to exercise its
additional strategic agreements both in the field of R&D
ownership rights in the medium term.
and marketing.
In 1990, as the first step of a privatization process,
Besides maintaining excellent performance in the United
the state-owned enterprise became a joint-stock
States and the European Union, our intention remains
Based on its net sales figures and operating profit, Richter
obtained a license to produce medicines. He bought
company for the second time. Its registered shares
to further enhance the Company’s multinational role in
received the “Top 200 – Best Hungarian company of
“Sas” pharmacy, still today owned and operated by
were introduced to the Budapest Stock Exchange on 9
the region and to continue delivering therapeutically
the year 2007” award from an independent professional
the Company, and started small-scale pharmaceutical
November 1994 and soon were listed among the four
advanced yet affordable products.
jury set up by Hungarian financial weekly “Figyelő”.
production. Later, he decided on production on
Hungarian blue chips.
an industrial scale and, in 1907, set up a modern
Privatization offerings in 1994, 1995 and 1997 led to
Another strategic objective is the constant renewal of
regional expansion and the establishment of cross-border
pharmaceutical factory on the outskirts of Budapest.
a reduction in the state’s shareholding in the Company.
our product portfolio. To realize this goal and ensure
business relations.
The Company was also rewarded for its achievements in
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6 Hungarian company
Ownership structure
Founded in 1901, Richter remains the only Hungarian
economic interests into account in its decisions.
There are no international strategic investors amongst
company, now of a multinational size, which retains
We concentrate our investments and R&D activity
Richter shareholders that is, Richter – unique with regard
its independence as it operates under Hungarian
in Hungary and offer employment for nearly 5000
to the Hungarian pharma sector – is not owned by an
management without an international strategic investor.
Hungarians. Production takes place at two sites in
international pharmaceutical company, and thus
Consequently, the management takes national
Hungary: Budapest and Dorog.
corporate strategy continues to be defined by the Hungarian management. In order to maintain its strategy and ensure Richter’s dynamic growth, it is essential that the Company retains its independence in decision-making and strengthens both its leading role in the region and its international
Contribution to Hungarian economy (HUF bn) 2008
strategic partnerships. This serves both shareholder
2004
2005
2006
2007
2009
2010
Investments
24.2
25.7
26.3
17.8
16.6
21.1
16.4
R&D
10.4
12.1
13.8
17.1
18.0
23.4
25.5
Taxes
14.1
15.7
17.2
21.0
22.2
24.6
23.7
Total
48.7
53.5
57.3
55.9
56.8
69.1
65.6
interests and those of the Hungarian economy as a whole.
Ownership structure (2010) MNV Zrt. (Hungarian State Holding Company) 25% International investors 63%
Domestic investors 12%
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8 In Poland
Richter Group In its primary activities of research and development,
traditional markets, together with the establishment
manufacturing and marketing of pharmaceutical products,
and development of our specialized marketing
Gedeon Richter is supported by a number of subsidiaries,
network have laid the foundation for a strong regional
joint ventures and associated companies. The Richter
multinational Group. The Company has strengthened
Group comprises these companies and the Hungarian
its regional multinational role through acquisitions and
parent company. Thanks to well-established synergies, the
a combination in Romania, Poland and Germany while
Richter Group’s performance means more than a simple
through the establishment of greenfield investments in
association of the individual performances of its members.
Russia and India, Richter has also expanded its network of
Our manufacturing subsidiaries, which operate in Richter’s
manufacturing bases.
A new member joined the Richter Group on 12 November
The finished product manufacturing unit was modernized
2002 when Gedeon Richter, as a strategic investor, acquired
and significant infrastructure, IT and environment protection
a 51% majority stake in the new Polish pharmaceutical
projects were completed. Besides the finished dosage product
manufacturer to be founded with Polfa. Richter’s ownership
plant, a pilot plant and a warehouse were also constructed,
in the company has since increased to 99.8% and a five-year
making Gedeon Richter Polska one of the most modern
capital expenditure program has been recently concluded.
pharmaceutical facilities in Poland.
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10 In Russia Gedeon Richter has been a household name in Russia for 50 years. Owing to its reliable, effective and affordable products, the Company has always been very popular on the Russian market. In 1996 the decision was made to set up a manufacturing unit near Moscow. Three years later the manual manufacturing facility began operations and in the autumn of 2001 the subsidiary “Gedeon Richter RUS” was officially inaugurated. The Richter Group’s Russian member manufactures and packages products covering several therapeutic areas. Among these are antiallergic, cardiovascular, antiulcer, antiinflammatory, tranquillizer and antibacterial preparations.
In Romania The history of Tirgu Mures-based Gedeon Richter Romania dates
developments in the past few years, including the setting up of
back to 1985, when the foundation stone of the pharmaceutical
a regional development laboratory and a logistics centre, the
plant Armedica was laid. Manufacturing began four years later.
development of tabletting, ointment and finished dosage plants
It was in 1998 that Richter purchased a 50.98% majority stake in
and the modernization of service units, the modern preparations
the company from the Romanian state. In 2003 the company’s
produced by the Romanian subsidiary comply with required
name changed to Gedeon Richter Romania S. A. and as a result of
regulations and the company has successfully undergone several
additional injections of capital Richter’s ownership in GR Romania
Romanian and Hungarian GMP inspections.
has reached almost 100%. One of the tenets of the medium
Richter operates an extensive distribution network in Romania,
and long-term strategy was the setting up of a marketing
and is the majority owner of a pharmaceutical retail and a
network, a quality assurance system and the establishment of
pharmaceutical wholesale company. In addition, a 120 unit
all conditions necessary for pharmaceutical manufacturing to
pharmacy chain assists in the promotion and sale of products
conform to international standards. Thanks to continuous facility
manufactured by the Richter Group.
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12 In Germany
In India
Following a Euros 22.9 million acquisition, the Richter-
Business relations between Gedeon Richter Plc. and the Indian
Helm biotechnological joint venture company was
company Themis date back to 1969 when they became joint
established in the German town of Dengelsberg in 2007.
venture partners for the production of APIs and formulations.
The new company, owned 70% by Richter and 30% by
In 2004 Themis Medicare, in which Richter has 5% equity, and
Helm employs 200 staff and comprises a state-of-the-art
Richter decided to expand their cooperation and established
plant for the bacterial type of biotechnology together
a new company under the name Richter-Themis Medicare
with an R&D laboratory and pilot plant.
Private Ltd., with a shareholding ratio of 51% Richter and 49%
Sales analysis by region (2010) Other countries 6%
USA
11% EU
CIS
34%
37% Hungary
12%
Themis Medicare.
Unique market network Unique among Central-Eastern European firms, the market
German Grünenthal’s oral contraceptive portfolio offers a
network of Gedeon Richter covers five continents with its
platform for Richter to establish its sales and marketing teams
products reaching nearly one hundred countries around the
in key Western European countries. More than 80 per cent of
world. The Company is present in more than thirty countries
the Company’s revenue is generated by exports (876 million
thanks to its five production sites, thirty one representative
euros in 2010). Of key importance in Richter’s strategy is the
offices, twenty one commercial subsidiaries and wholesale
maintenance and enhancement of a strong market position
joint ventures. Richter’s market network branches into many
in the traditional markets of the CIS countries, especially Russia,
countries in the European Union; moreover, it extends into
and the Central-Eastern European region, where Richter plays
the United States, Japan, the CIS countries and the Eastern
the role of a regional multinational company. However, we also
region. The Company operates an extensive marketing and
place great emphasis on strengthening our market presence
distribution network in Hungary, the CIS and Eastern Europe.
in the US and EU since these remain major contributors to our
Furthermore, the acquisition of Swiss PregLem and that of
excellent performance.
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14 10 Richter Group
(for contact information, please visit http://www.richter.hu)
Subsidiaries and joint ventures in production Germany, Bovenau – Richter-Helm BioLogics GmbH & Co KG
Subsidiaries and joint ventures in production Commercial subsidiaries Representative offices
India, Vapi – Richter Themis Medicare (India) Private Ltd. Poland, Grodzisk – Gedeon Richter Polska Sp. z o.o.
Romania, Târgu Mureş – Gedeon Richter Romania S.A. Russia, Yegoryevsk – ZAO Gedeon Richter RUS CJSC
Representative offices Armenia, Yerevan Azerbaijan, Baku Belarus, Minsk Bulgaria, Sofia China, Shanghai Czech Republic, Prague Estonia, Tallinn Georgia, Tbilisi India, Mumbai
Kazakhstan, Almaty Kyrgyzstan, Bishkek Latvia, Riga Lithuania, Vilnius Moldova, Chisinau Mongolia, Ulan Bator Russia, Irkutsk Russia, Kazan Russia, Khabarovsk Russia, Krasnodar Russia, Moscow Russia, Novosibirsk Russia, Saint Petersburg Russia, Volgograd Russia, Yekaterinburg Serbia, Belgrade Slovakia, Bratislava Tajikistan, Dushanbe Turkmenistan, Ashgabat Ukraine, Kiev Uzbekistan, Tashkent Vietnam, Ho Chi Minh City Commercial subsidiaries Armenia, Yerevan – SP OOO RichterLambron, SP OOO Gedeon Richter Apteka Austria, Vienna – Gedeon Richter Austria GmbH Azerbaijan, Baku – SP OOO Vita-Richter France, Paris – Gedeon Richter France S.A.R.L.
Germany, Eschborn – Gedeon Richter Pharma GmbH Germany, Hamburg – Richter-Helm Biotec GmbH & Co. KG Italy, Milan – Gedeon Richter Italia s.r.l. Jamaica, Kingston – Medimpex West Indies Ltd. Moldova, Chisinau – Richpangalfarma S.R.L., Gedeon Richter-Retea Farmaceutica S.R.L. Poland, Warsaw – Gedeon Richter Marketing Polska Sp. z o.o. Portugal, Lisbon – Gedeon Richter Portugal, Lda Romania, Cluj-Napoca – SC Pharma pharm Romania S.A. Romania, Corunca – Gedeon Richter Farmacia S.A. Spain, Barcelona – Gedeon Richter Ibérica S.A. Switzerland, Cham – Gedeon Richter (Schweiz) AG Ukraine, Kiev – OOO Gedeon Richter Ukrfarm Ukraine, Vyshneve – PAT Gedeon Richter UA United Kingdom, London – Gedeon Richter UK Ltd. USA, Ridgewood – Gedeon Richter USA Inc.
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16 Efficient, affordable products – worldwide
In the service of innovation Original pharmaceutical molecular research and continuous
The Richter brand is known and respected all over the world. The
innovation have been defining elements of Richter’s strategy
Company produces about one hundred pharmaceutical products
since its establishment in 1901. Today, with a 900-strong
in more than 170 presentations. Among its products are original,
research and development team in Hungary, the Company
generic and licensed preparations, offering effective, advanced and
has evolved into the Central-Eastern European region’s most
affordable treatments for many therapeutic areas. Whilst our
important center for pharmaceutical research.
R&D efforts are focused on drugs for the central nervous system, we also attach great importance to the development and produc
Besides carrying out original research, the Company
tion of cardiovascular and gastrointestinal preparations and oral
is also engaged in the development of generic drugs
contraceptives. The product range is constantly expanding as new
and chemical processes. Our original pharmaceutical
products are introduced.
research activities focus exclusively on drugs of the central nervous system – especially treatments for chronic pain, schizophrenia and anxiety. Richter believes that innovation, technological standards and agility are the
Products by therapeutic area (2010)
three most important ingredients of original research.
Gynecology Central Nervous System
Therefore, the Company has devoted significant financial
33%
resources to the modernization of biological laboratories
14%
and that of the general R&D infrastructure in the past few Muscle relaxants
6%
years. A new experimental technological laboratory was completed during 2006, where high quality APIs, suitable for clinical trials, may be produced on kilogram scale. In 2007 construction work on a chemical-analytical
Other
Cardiovascular
18% Gastrointestinal
4%
25%
19
18
research centre that meets the highest quality and technological requirements, together with an adjoining office block, was also completed. When compared with other Hungarian firms Gedeon Richter spends the highest ratio, on average 10 per cent of its revenue (amounting to HUF 27.1 billion in 2010) on research and development – ranking it second in the Central-Eastern European region. As an acknowledgement of the Company’s innovative activity, the World Intellectual Property Organization awarded Gedeon Richter the WIPO Gold Medal for Inventors in 1996. For its achievements in active ingredient research, the Company also won the Innovation Award of the Hungarian Innovation Society in 1995, 1996, 1997, 2001, 2005, and 2010 and the Innovation Grand Award in 2003 and 2006. Moreover, our hypertensive preparation was rewarded with the
The future pharmaceutical industry in Richter today
”Drug of the Year – 2006” award. For any company thinking to the longer term, it is vital to
Consequently, in 2007 Gedeon Richter Plc. made the
have a presence in new fields that can provide breakout
strategic decision to enter this field through the
points in the future. For the pharmaceutical sector
establishment of biotechnological R&D and
biotechnology provides such an opportunity.
manufacturing facilities.
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20 Gynecology – an area of focus The following year the Company commenced the
Richter has been employing biotechnological processes for
For Richter gynecological therapy is an area of strategic
construction of a plant for the development and
more than four decades, mainly in the production of
importance in which the Company is a leading player
manufacture of biopharmaceutical products in the
steroid intermediates and APIs with sterile fermentation.
even by international standards. Its major goal is to be
Hungarian city of Debrecen, with total expenditure
The Company boasts a solid tradition and expertise in both
a trustworthy partner for women and physicians alike.
expected to be in the region of HUF 15 billion. The new
development and manufacture. Thanks to its R&D efforts
Gedeon Richter is one of the few companies in the world
manufacturing unit is seen as not only a milestone in the
and positive results, Richter remains one of the most
which offer a comprehensive gynecology portfolio from
realization of Richter’s strategic goals but also a significant
significant centers of research in Central-Eastern Europe.
the most advanced oral and emergency contraceptives
step forward in enhancing the competitiveness of
Richter has executed major investments in the field of
to antifungal and hormone replacement therapy products.
Hungarian industry and thereby also that of Hungary.
biotechnology in the past few years. In November 2005 the
Moreover, the Company is determined to expand its
Company announced the completion of a laboratory,
product range continuously. Our employees’ internationally
The new biotechnological unit in Debrecen offers a good
unique in Hungary at the time, suitable for large-scale
acknowledged expertise in steroid chemistry and active
example of the strategic goals of Richter, a company both
fermentation of recombinant proteins for human use.
pharmaceutical ingredient development, the cost-effective
based in Hungary and operated by a Hungarian
large-scale production, together with facilities that comply
management team. The Company intends to establish a
Following a Euros 22.9 million acquisition, the Richter-Helm
with the strictest quality standards ensure a competitive
The acquisitions well complement Richter’s existing
complex and competitive biopharma line which will help
biotechnological joint venture company was established in
advantage that provides solid ground for further growth.
women’s health franchise as the portfolio will cover
expand its domestic and international product portfolio
the German town of Dengelsberg in 2007. The new
with products offering high added value. Moreover, the
company, owned 70% by Richter and 30% by Helm, employs
The acquisition of Swiss pharmaceutical company PregLem
to the elderly (i.e. oral and emergency contraception,
project will assist in the introduction of biotechnology, as
200 staff and as the youngest member of the Richter Group
was a major milestone in 2010, since PregLem now
gynecological infections, treatment for benign
a sector representing high intellectual added value, to
comprises a state-of-the-art plant, for the bacterial type of
constitutes Richter’s original research and development
gynecological conditions such as endometriosis, uterine
Hungary and thus increase the country’s competitiveness
biotechnology and the production of recombinant proteins,
centre focusing on gynecology, more precisely on
fibroids, post surgical abdominal adhesions, infertility as
while also creating 110 new jobs.
together with an R&D laboratory and pilot plant.
gynecological conditions with significant unmet medical
well as osteoporosis and hormone replacement therapy).
needs. On the other hand, the purchase of German
The US market is of special importance with regard to the
Grünenthal’s oral contraceptive portfolio offers a unique
export of Richter gynecological products as the Company
opportunity for Richter both to strengthen its presence
delivers both steroid APIs and finished dosage products
in Western European markets and to further expand the
in large quantities to the US.
the medical needs of all age groups from adolescents
company’s existing female healthcare business.
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22 Quality
Co-operation
It is essential that pharmaceutical products are
The Company considers it essential to establish research
universities and also those of the Hungarian Academy of
produced with uniformly consistent quality. That is
partnerships to facilitate the development and marketing
Science. The Company runs joint research projects with
why, in addition to expertise, modern equipment and
of new molecules. By forming alliances with foreign
more than thirty such institutions. Richter’s efforts are well
manufacturing technologies play an important role
pharmaceutical manufacturers and research institutions,
illustrated by the research laboratory, specializing in the
in the pharmaceutical industry. At Richter we have
Richter intends to transfer international experience to serve
source and alleviation of pain, which was set up by the
dedicated ourselves to the continual improvement of
Hungarian innovation.
Transdanubian Regional Research Center at the University
quality assurance. The Company rigorously observes both
Richter supports talented youths not only in their positions
of Pécs with the assistance of a generous contribution
domestic and international regulations and guidelines
at the Company but at the research facilities of Hungarian
from Richter.
and compliance is regularly monitored by Hungarian, European and US quality control authorities in all fields of production. Richter quality meets the highest requirements. All this is clear proof that Hungarian pharmaceuticals have quality equal to any on the world market. Owing to the strict quality requirements and increasing demands of our partners, Richter is dedicated to continuous investment.
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24 Sustainable development
Ethics
Sustainable development is a crucial aspect of Richter’s
Richter has received various awards in the last few years
Since its establishment, Gedeon Richter has demon
strategy. It is by taking into consideration economic, environ
for its activity as a good corporate citizen – in 2001
strated a strong ethical behavior in business and
mental and social concerns that the Company prepares its
Hungarian financial weekly „Figyelő” recognized the Com
expects the same from its partners and employees. As
long-term plans and, thus, safeguards the future of share
pany’s sense of responsibility while the Patron Diploma
recognition of the Company’s outstanding business
holders, employees and its immediate environment. In line
in 2004 acknowledged Richter’s intensive patronage.
ethics, Gedeon Richter received the Business Ethics
with its corporate social responsibility policy, Richter maintains
Furthermore, Richter received the Kármán Tódor Prize
Award in 2003.
a dialogue with its partners, shareholders, representatives of
twice, in 2000 and 2005, for its special support of Hunga
civil society and the relevant government authorities.
rian education, adult training and scientific research as
Safety in the workplace as well as compliance with health
well as Braun & Partners’ Good CSR award in 2009 for
and environment protection standards are key ingredients
responsible corporate governance.
of Richter’s CSR policy. Environmental performance is carried out under the umbrella of an Environmental Management System implementing ISO 14001 standards and first certified in 2001. Similar, workplace safety and health is guaranteed by the ISO 28001-compliant Occupational Health and Safety Management System, certified in 2006. Richter’s commitment towards its immediate environment and society at large takes many forms. On the one hand, Richter products offer treatment for patients while our research activity contributes to the discovery of little-known therapeutic areas. On the other hand, we recognize that it is our responsibility to assist community objectives according to our capabilities. Richter believes it should dedicate its efforts to the areas strongly connected to its business activity and in line with this belief the Company is an avid supporter of Hungarian health care and education.
26 Planning for the long term Traditions and respect for the past are important for our Company. In 2001, we decided to set up a museum that provides information on the one-hundred-year history of the Company. This unique exhibition on the history of the pharmaceutical industry attracts domestic and international business partners, pharmaceutical experts, physicians, students and enthusiasts of industrial and local history alike. The history of Hungarian pharmaceutical manufacturing, along with Richter, goes back more than one hundred years. Rightly known and acknowledged worldwide, the Hungarian ”gray matter” put itself on record with several brilliant technical solutions, chemical processes and other innovations. It is the long generations of chemists, engineers, doctors, pharmacists and technological experts that provide a solid foundation for Richter’s long-term success. Our intention remains to further enhance the Company’s multinational role and to continue delivering therapeutically advanced yet affordable products. Another strategic objective is the constant renewal of our product portfolio. To realize our goals and ensure the Richter Group’s dynamic growth, the Company will continue to execute significant investments and conclude additional strategic agreements both in the field of R&D and marketing with an independent ownership structure.
Gyömrői út 19–21., Budapest H-1103, Hungary Telephone: +36 1 431 4000, +36 20 885 2000 Fax: +36 1 260 6650, +36 1 260 4891
[email protected] • www.richter.hu
2011
