Management of Hungarian pharmaceutical producer Egis lowered their estimate for 2012 domestic and eastern European sales. The company reported higher-than-expected EBIT for Q4 2012 and a small overshoot of the consensus forecast on its net profit row. Chief Financial Officer Csaba Poroszlai told a press conference that further considerable price reductions were possible in Hungary due to the so-called blind bidding process currently in effect.
There is a negative trend on the Hungarian market where the blind bidding process caused a major decline in revenues. It cannot be excluded that this will lead to further serious price reductions in 2012, Poroszlai said.
Should the current exchange rate prevail gross margin could be slightly over the 2011 level, he projected.
Egis expects major R&D investments this year (HUF 15 bn in the whole of the year, just like in 2011). The company will build a 5,000-sqm research and analytic centre this year.
Although R&D costs dropped in Q4, management expect a growth on this row. Cost control had to be implemented over domestic hardships.
Management lowered their estimates for domestic and eastern European sales for 2012, primarily over the unfavourable regulatory changes.
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