Hungary's Richter to maintain operations in Russia, CEO says - news website (updated)

Richter Gedeon Vegyeszeti Gyar Nyrt

01/07/2022 09:34

(Adds more comments, background)
    BUDAPEST, July 1 (Reuters) - Hungarian drug maker Richter
 GDRB.BU  has experienced pressure from Ukraine to "rethink" its
presence in Russia but the company is not leaving, its chief
executive Gabor Orban was reported as saying by a business news
website on Friday.
    "The pharma industry is different from other ones in the
sense that it produced essential products that serve the
improvement of health," Orban told the the hvg.hu news website.
    "Richter alone provides medicine for 12 million Russian
people, we cannot let them down. There is full agreement on this
among our partners, and shareholders."
    Richter, which makes gynecological, cardiovascular and
central nervous system drugs, has been gradually working to
limit its exposure to the Russian market and former Soviet Union
countries through an expansion drive in western markets in past
years.
    Russia is still Richter's second biggest market. Richter
also has operations in Ukraine. 
    When asked whether Russia's warning that it could
nationalise western companies posed a risk to Richter, Orban
said:
    "This cannot be excluded but nothing would justify such a
step as Richter maintains its operations in Russia. The question
rather is how we can ensure continuous operations."
    Orban said Richter faced hardships in getting its shipments
to Russia due to delays, with waiting times especially on the
Polish-Belarus border increasing.
    "We also have problems in operating our plant in Russia, as
we have supply disruptions," he said. "Some western companies
are not willing to work for Russian clients which causes
obstacles in supply of parts and IT operations."
    On the positive side, he said Richter's shipments to western
Ukraine resumed. 
    Orban said the depreciation in the forint, which has
weakened by 7% so far this year, could help Richter match last
year's profits in forint terms as it would boost export
earnings.
    In the first quarter, Richter's profits came in above
expectations.  urn:newsml:reuters.com:*:nS8N2VA0AD 
    At 0801 GMT, Richter shares traded 0.6% higher at 6,870
forints on the Budapest Stock Exchange, in line with the blue
chip .BUX index.
    

 (Reporting by Krisztina Than; Editing by Frank Jack Daniel &
Simon Cameron-Moore)
 ((krisztina.than@thomsonreuters.com;))