Richter Gedeon Nyrt.

has published its new long-term strategy aimed at ensuring the company's continued success even as the patent for cariprazine nears expiration towards the end of the decade.

Titled 'Richter 2035,' the document succinctly outlines tasks and objectives relevant to patients, employees, communities, and shareholders, detailing how the company prepares for the upcoming decades.

In an interview, CEO Gábor Orbán indicated that the emphasis in 2024 would be on external validation, noting the company's enhanced capabilities recognized by others.

Orbán mentioned that 2025 would provide more insights into plans for the post-2030 period.

The strategic document highlights two core pillars that will guide Richter's focus moving forward.

Firstly, the company aspires to be a global leader and innovator in specific scientific fields.

Secondly, it is committed to making medicines and treatments increasingly accessible to patients worldwide, emphasizing affordability and high quality.

Research is currently underway to identify and develop the next 'blockbuster molecule' in neuropsychiatry, while the company plans to expand its portfolio of innovative treatments in women's health across both existing and new therapeutic segments.

Richter's foundation in biotechnology and generics aims to create substantial synergies and a competitive growth pillar based on clearly defined therapeutic areas.

Orbán noted that the management team has been focused on this strategy development, emphasizing the alignment of market trends with the company's capabilities.

Over the past six years, Richter has undergone significant transformations, concentrating on three main areas: manufacturing, research and development (R&D), and commerce.

The focus on increasing efficiency has already led to a doubling of revenue while reducing employee numbers, clearly improving the company's profitability and productivity.

The new strategy aims to improve quality of life, particularly for women and psychiatric patients, by targeting areas where the company has existing strengths.

Orbán remarked on the importance of structural growth and indicated that non-royalty business areas should align with positive trends in growth.

Richter aims to elevate the Women's HealthCare (WHC) division into its leading revenue-generating sector by 2035. The strategy includes maximizing the potential of the current portfolio and introducing innovative products, with goals to double WHC revenues and R&D investments while significantly improving profitability.

The neuropsychiatry division (CNS) has set a priority to introduce the next blockbuster molecule, with a focus on maximizing the value of cariprazine while its patent protection lasts.

The company is determined to ensure that CNS remains a value-generating business in the upcoming decades despite increasing demand for treatments related to mental disorders and rising patient awareness.

For the General Medicines (GenMed) division, Richter anticipates doubling revenues by 2035 while achieving over 20% clean EBIT margin and increasing the freshness index of its portfolio above 15%, which represents the ratio of newly launched products over the past five years.

The therapeutic areas targeted include cardiovascular diseases, traditional CNS, hematological therapies, and obesity/diabetes, taking advantage of attractive growth prospects despite existing price erosion.

The company plans to extend its geographical coverage in Western Europe, offering integrated therapeutic solutions for patients and healthcare providers.

Furthermore, the Biotech segment is projected to become Richter's fastest-growing division, driven by the biosimilar product line, which is expected to see strong double-digit growth by 2035. The focus on immunology and musculoskeletal therapeutic areas aims to achieve profitable operations by 2027, contributing to Richter's strong market position in biosimilar products.

Richter projects that its non-CNS revenues will grow at an average rate of 7-8% per year, reaching between €3.2 to €3.5 billion by 2035. The company is committed to enhancing profitability across its divisions, focusing on operational excellence and effectiveness improvement supported by renewed governance and talent development frameworks.

With this long-term strategy, Richter expresses confidence in maintaining a €200 million annual base dividend, even beyond the expiration of the cariprazine patents, based on projected growth in non-CNS revenues.

As the company prepares to navigate the changing landscape of the pharmaceutical industry, it remains focused on leveraging its capabilities and strategic goals.