Q2 2026 Richter Gedeon Vegyeszeti Gyar Nyrt Earnings Call

August 7, 2026

Speaker #1: Good morning, ladies and gentlemen, and welcome to Gedeon Richter's Q2 2026 earnings conference call. My name is Robert Creti; I'm Head of Investor Relations and ESG, and today I have two senior executives joining me for this call.

Róbert Réthy: Good morning, ladies and gentlemen, and welcome to Gedeon Richter's Q2 2026 earnings conference call. My name is Róbert Réthy. I am Head of Investor Relations in Gedeon Richter. Today, we have two senior executives joining me for this call. It is my pleasure to welcome Gábor Orbán, our Chief Executive Officer, and László András Kovács, our Chief Financial Officer, to walk you through the latest developments. Before we start the presentation, let me just quickly go through the usual technical details. We will be using presentation slides for the first part of the call. This is the presentation, what we published this morning along with our earnings, and this is downloadable on our website, gedeonrichter.com.

Speaker #1: It's my pleasure to welcome Gábor Orbán, our Chief Executive Officer, and László Kovács, our Chief Financial Officer, to walk you through the latest developments. Before we start the presentation, let me just quickly go through the usual technical details.

Speaker #1: We will be using presentation slides for the first part of the call. This is the presentation that we published this morning along with our earnings, and it is downloadable on our website, gedeonrichter.com.

Speaker #1: After the presentation, there will be a Q&A session where you will have a chance to ask questions to the management, either using the raise-your-hand functionality of Teams or in the chat box, as usual.

Róbert Réthy: After the presentation, there is going to be a Q&A session where you will have a chance to ask questions from the management, either using the raise your hand functionality of Teams or in the chat box, again, as usual. The call is being recorded. Finally, let me draw your attention to the cautionary statement or disclaimer at the end of the presentation with regard to potential forward-looking statements that may be heard during the presentation. With that, I hand it over to Gábor to start the call.

Speaker #1: The call is being recorded, and finally, let me draw your attention to the questionnaire statement or disclaimer at the end of the presentation with regard to potential forward-looking statements that may be that may be heard in the during the presentation.

Speaker #1: And with that, I hand it over to Gábor to start the call.

Speaker #2: Thank you. Good morning, everyone, and thank you for your continued interest in the company and your continuing trust and support. The first thing you'll probably notice in this report is the significant foreign exchange headwind, but looking a bit deeper, I'm sure it becomes clear that our underlying performance picked up in Q2, and so now we have sufficient confidence in our ability to achieve, and even outperform, our full-year targets.

Gábor Orbán: Thank you. Good morning, everyone, thank you for your continued interest in the company, and your continuing trust and support. The first thing you probably notice in this report is the significant foreign exchange headwind. Looking a bit deeper, I am sure it becomes clear that our underlying performance picked up in Q2, so now we have sufficient confidence in our ability to achieve and even outperform our full-year targets. Some of this is driven by outstanding growth in CNS, you will remember that our main KPI is the ex-CNS margin, and our Q2 numbers should give us reassurance that we are taking a meaningful step this year to close the gap between where we are and where we want to be, also in terms of ex-CNS operating margin.

Speaker #2: Some of this is driven by outstanding growth in CNS, but you will remember that our main KPI is the ex-CNS margin, and our Q2 numbers should give us reassurance that we are taking a meaningful step this year to close the gap between where we are and where we want to be.

Speaker #2: Also, in terms of ex-CNS operating margin, the guidance upgrade is basically on the clean EBIT side, partly due to Vraylar performance and partly due to the stronger momentum.

Gábor Orbán: The guidance upgrade is basically on the Clean EBIT side, partly to do with Vraylar performance and partly with the stronger momentum in profitability in the remaining parts of the business. Biotechnology is on a good track. The drivers that we highlighted in recent years are at work, breaking even for this business unit is within reach. Improving momentum in women's healthcare, and continued operational discipline across the organization were the other two main factors that underpin our confidence that the ex-CNS margin should improve this year. As you see on this slide, constant currency revenue growth reached 8.7 in H1, this is in line with our full-year high single-digit growth ambitions. CNS, like I said, once again delivered exceptional performance, not only supported by Vraylar, but also by Reagila, our own commercial territories.

Speaker #2: In terms of profitability in the remaining parts of the business, biotechnology is on a good track. The drivers that we highlighted in recent years are at work, and breaking even for this business unit is within reach.

Speaker #2: Improving momentum in women's healthcare and continued operational discipline across the organization were the other two main factors that underpin our confidence that the ex-CNS margin should improve this year.

Speaker #2: As you see on this slide, constant currency revenue growth reached 8.7% in the first half, and this is in line with our full-year high single-digit growth ambitions.

Speaker #2: CNS, like I said, once again delivered exceptional performance, not only supported by Vraylar but also by Reagila in our own commercial territories. Biotech also exceeded expectations on the back of successful launches and strong partner sales.

Gábor Orbán: Biotech also exceeded expectations on the back of successful launches and strong partner sales. Women's healthcare and Gen Med showed improving sales dynamics in Q2. The Gen Med remained below our original plans due to timing effects and other market-related technical factors. Once we're out of the woods in this recovery phase, we still believe that mid-single digit growth in this segment remains the long-term potential. Despite the FX pressure on reported revenues and gross profit, profitability developed extremely well. Constant currency clean EBIT is up by 21% in H1. The innovative business is behind most of the profitability growth, and the impact of multi-year efficiency and restructuring initiatives finally are showing their effects. We also delivered record high free cash flow generation, demonstrating the strength of our cash conversion balance sheet.

Speaker #2: Women's Healthcare and GenMed showed improving sales dynamics in the second quarter. GenMed remained below our original plans due to timing effects and other market-related technical factors, but once we're out of the woods in this recovery phase, we still believe that mid-single-digit growth in this segment remains the long-term potential.

Speaker #2: Despite the FX pressure on reported revenues and gross profit, profitability developed extremely well. Constant currency clean EBIT is up by 21% in the first half. The innovative business is behind most of the profitability growth, and the impact of multi-year efficiency and restructuring initiatives is finally showing its effects.

Speaker #2: We also delivered record-high free cash flow generation, demonstrating the strength of our cash conversion and balance sheet. So, based on this strong first half, we are updating 2026 Pharma Clean EBIT and now expect double-digit growth on a constant currency basis, so somewhere in the teens.

Gábor Orbán: Based on this strong H1, we are upgrading 2026 pharma clean EBIT and now expect double-digit growth on a constant currency basis, somewhere in the teens. Two more points on the innovative developments. We launched FYLREVY E4 Immuno in 3 markets. We expanded the geographic reach of Lenzetto as part of another effort to broaden our presence in menopause. Took another important step forward in innovation with RGH-202 moving into phase II. These milestones may appear incremental, but collectively they contribute significantly to the strengthening of our future growth foundations. I'd like to go off on what may look like a tangent on the next slide, by discussing our multi-year efforts to relocate and consolidate, concentrate our API infrastructure. You may hopefully know we manufacture API in 3 of our sites, Budapest, Dorog, and an Indian joint venture.

Gábor Orbán: Based on this strong H1, we are upgrading 2026 pharma clean EBIT and now expect double-digit growth on a constant currency basis, somewhere in the teens. Two more points on the innovative developments. We launched FYLREVY E4 Immuno in three markets. We expanded the geographic reach of Lenzetto as part of another effort to broaden our presence in menopause. Took another important step forward in innovation with RGH-202 moving into phase II. These milestones may appear incremental, but collectively they contribute significantly to the strengthening of our future growth foundations. I'd like to go off on what may look like a tangent on the next slide, by discussing our multi-year efforts to relocate and consolidate, concentrate our API infrastructure. You may hopefully know we manufacture API in three of our sites, Budapest, Dorog, and an Indian joint venture.

Speaker #2: Two more points on the innovative developments: we launched FeelReady E4 Mono in three markets; we expanded the geographic reach of Lenzetto as part of our efforts to broaden our presence in menopause; and to accelerate an important step forward in innovation, RGH-202 has moved into Phase II.

Speaker #2: These milestones may appear incremental, but collectively they contribute significantly to the strengthening of our future growth foundations. I'd like to go off on a on a on what may look like a tangent on the next slide, by discussing our multi-year efforts to relocate and and consolidate concentrate our API infrastructure.

Speaker #2: You may know that we manufacture API at three of our sites: Budapest, Dorog, and an Indian joint venture. The Budapest site has been struggling in the last few years, along with the rest of European API manufacturing.

Gábor Orbán: The Budapest site has been struggling in the last number of years, along with the rest of European API manufacturing, as the sourcing gets shifted to China and India increasingly. Europe is fighting for strategic autonomy in API manufacturing. By Europe, I mean European companies are fighting. Europe isn't fighting all that much. There's a lot of lip service to the cause, but very little in the way of concrete measures. In order to maintain or improve, rather, the competitiveness of our API manufacturing capability, we decided in 2022 to create a fit-for-purpose infrastructure and fit-for-purpose organization, which in plain English means the right sizing, shrinking of the infrastructure for API. The Budapest site has now been downsized materially. We're closing down these facilities, some of them this year, others next year.

Speaker #2: As the sourcing gets shifted to China and India, increasingly, Europe is fighting for strategic autonomy in API manufacturing. By Europe, I mean European companies are fighting.

Speaker #2: Europe isn't fighting all that much; there's a lot of lip service to the cause, but very little in the way of concrete measures. So in order to maintain or improve rather the the competitiveness of our API manufacturing capability, we decided in 2022 to to create a fit-for-purpose infrastructure and fit-for-purpose organization which in plain English means the right sizing shrinking of the infrastructure for API.

Speaker #2: And so the Budapest site has now been downsized materially; we're closing down these facilities. Some of them this year; others next year. We retain a small unit in order to contribute to the total synthesis of our steroid compounds synthetic hormones mostly, in Budapest, but it's a it's a maybe half a plant or or one-third of the size of a of what used to be four plants.

Gábor Orbán: We retain a small unit in order to contribute to the total synthesis of our steroid compounds, synthetic hormones mostly, in Budapest, but it's maybe half a plant or one-third of the size of what used to be 4 plants. We're going from 4 to one-half in Budapest. This has had implications for headcount, and as a consequence for the restructuring costs, which Laci, our CFO, will discuss in a bit more detail for you, but also has implications for the energy use of the group, which is now down by 54% as far as the API-related energy demand is concerned. Specifically API energy usage is down by half, and the operational floor area in the context of this right sizing is smaller in Budapest, very significantly, 30,000 square meters.

Gábor Orbán: We retain a small unit in order to contribute to the total synthesis of our steroid compounds, synthetic hormones mostly, in Budapest, but it's maybe half a plant or one-third of the size of what used to be four plants. We're going from 4 to one-half in Budapest. This has had implications for headcount, and as a consequence for the restructuring costs, which László, our CFO, will discuss in a bit more detail for you, but also has implications for the energy use of the group, which is now down by 54% as far as the API-related energy demand is concerned. Specifically API energy usage is down by half, and the operational floor area in the context of this right sizing is smaller in Budapest, very significantly, 30,000 square meters.

Speaker #2: So we're going from four to one-half in Budapest, and this has had implications for headcount and, as a consequence, for the restructuring costs, which Lotsi, our CFO, will discuss in a bit more detail for you.

Speaker #2: But it also has implications for the energy use of the group, which is now down by 54%. As far as the API-related energy demand is concerned—so, specifically API—energy usage is down by half, and the operational floor area in the context of this—right—smaller in Budapest, very significantly, 30,000 square meters.

Speaker #2: In Dorog, also, some of that consolidation has led to a decline in the surface area used for API manufacturing. And finally, hazardous waste generation is also down by 11.5%.

Gábor Orbán: In Dorog also, some of that consolidation has led to a decline in the surface area used for API manufacturing. Finally, hazardous waste generation is also down by 11.5. This contributes to the competitiveness of the API division. Let's call it a division. It's not a division. What is it? Our API organization and infrastructure and our cost base for API, also contributes to our ESG efforts when it comes to environmental impact and footprint. It also contributes to lower headcount and savings on that front. It's been a tremendous effort and it is a way to disentangle something that was built up over many, many decades. In order for us to evolve the organization and evolve the infrastructure in line with our portfolio and our environment has evolved, these steps were necessary, and we are proud to have completed them. Okay.

Speaker #2: So this contributes to the competitiveness of the API division—let's call it a division. It's not a division; what is it? Our API organization and infrastructure, and our cost base for API, and also contributes to our ESG efforts.

Speaker #2: When it comes to environmental impact and footprint, it also contributes to lower headcount and savings on that front. So it's been a tremendous effort, and it's very hard to disentangle something that was built up over many, many decades. But in order for us to evolve the organization and evolve the infrastructure in line with our portfolio and our environment, it has evolved.

Speaker #2: These steps were necessary, and we are proud to have completed them. Okay, on the second quarter, a bit more in detail—here are the business units' reported growth rates and constant currency growth in this table in front of you.

Gábor Orbán: On Q2, a bit more in detail. Here's the business units reported growth rates and constant currency growth in this table in front of you. We were encouraged by the improving business dynamics. Most of our key engines performed in line with or above expectations. We are confident that this innovation-led growth strategy will deliver sustainable growth in the coming years. Women's Health accelerated in Q2, although the entire H1 is still affected by lower sales in Eastern Europe and the traditional oral contraceptives. The key growth brands such as Verco, Rovalis, Lenzetto, and Bemfola remains intact, and we are proud of FYLREVY that was launched in our first markets. CNS, I already mentioned. Continue to perform extremely strong after what happened last year.

Speaker #2: We were encouraged by the improving business dynamics. Most of our key engines performed in line with or above expectations, so we're confident that this innovation-led growth strategy will deliver.

Speaker #2: Sustainable growth in the coming years. Women's health accelerated in Q2, although the entire first half is still affected by lower sales in Eastern Europe and traditional oral contraceptives.

Speaker #2: But the key growth brands such as ViaCode, Rovellis, Lenzetto, and Benfora remain intact, and we're proud of PhilRevi—that was launched in our first markets.

Speaker #2: CNS, I already mentioned, continues to perform extremely strongly after what happened last year. This was, well, hardly anyone's expectation. For Vraylar to continue growing 19% on a year-on-year basis, and reaching close to $2 billion according to AbbVie's disclosure.

Gábor Orbán: This was hardly anyone's expectation for Vraylar to continue growing 19% on a year-on-year basis and reaching close to HUF 2 billion, according to AbbVie's disclosure. We are very happy with those royalty income, which is lower than what AbbVie grew in this H1. That's due to the FX, obviously. Also our own sales, our own commercial category, Reagila, grew a very significant 25%, partly due to the fact that we took over some of our partner sales and now book as revenues and work with the product in a greater number of territories with our own team. That definitely helps. Biotech exceeded expectations. Revenue growth reached 30% on a constant currency basis. It was driven partly by exceptionally strong teriparatide sales and the contribution from recent biosimilar launches.

Speaker #2: So we are very happy with those royalty incomes, which are lower than what AbbVie grew in this first half, but that's due to the effects, obviously.

Speaker #2: And also, our own sales, our own commercial territory, Reagila, grew a very significant 25%, partly due to the fact that we took over some of our partner sales and now book these as revenues and work with the product in a greater number of territories with our own team.

Speaker #2: That definitely helps. Biotech exceeded expectations—revenue growth reached 30% on a constant currency basis. It was driven partly by exceptionally strong teriparatide sales and the contribution from recent biosimilar launches.

Speaker #2: The playbook that we outlined for you is taking shape in 2026, and so we're confident that we can break even with the biotechnology business unit at the latest next year.

Gábor Orbán: The playbook that we outlined for you is taking shape in 2026, we're confident that we can break even with the biotechnology business unit at the latest next year. General medicines remain the only business unit that was below our original plans. Sales picked up in Q2, the absence of the flu season, or rather the weakness of the flu season, the high base, and the rationalization of our distributor inventory, they all weighed on reported growth. Once we recover from the hit we took last year, we expect to grow at a steady pace of mid-single-digit growth. We continue to see, and we see clear signs that Gen Med weakness is temporary. The last set of remarks I want to make have to do with the geographical breakdown.

Speaker #2: General Medicines remain the only business unit that was below our original plans. Sales picked up in the second quarter, but the absence of the flu season, or rather the weakness of the flu season, and the high base and the rationalization of our distributor inventory—they all weighed on reported growth.

Speaker #2: Once we recover from the hit we took last year, we expect to grow at a steady pace of mid-single-digit growth, so continue to see—and we see clear signs that GenMed weakness is temporary.

Speaker #2: The last set of remarks I want to make have to do with the geographical breakdown. I'll be very quick to point out that our innovative segments' related geographies, which are North America and Western Europe, delivered most of the growth.

Gábor Orbán: I'll be very quick to point out that our innovative segments related geographies, which is North America and Western Europe, delivered most of the growth. Eastern Europe is the laggard, along with Central Asia. Trends did improve in Q2. We expect further strength in the coming quarters, but in H1, clearly they were laggards. Once again, I think geographical developments also underpin our full year expectation of close to 10% constant currency growth. On the cost side, László will explain how we've done so far and what makes us confident that we can outperform the initially presented guidance for the full year. With that, I'd like to hand over to László Kovács, our CFO, for his-

Speaker #2: Eastern Europe is the laggard. Along with Central Asia, trends did improve in the second quarter. We expect further strength in the coming quarters, but in the first half, clearly they were laggards.

Speaker #2: So, once again, I think geographical developments also underpin our full-year expectation of close to 10% constant currency growth. On the cost side, Lotsi will explain how we've done so far and what makes us confident that we can outperform the initially presented guidance for the full year.

Speaker #2: So, with that, I'd like to hand over to László Kovács, our CFO, of course.

Speaker #1: Thank you so much. I'm happy to tell you that we continue to see the tangible benefits of multi-year efficiency programs and also the structural improvements that were implemented over the past few years.

László András Kovács: Thank you so much. I'm happy to tell you that we continue to see the tangible benefits of multi-year efficiency programs and also the structural improvements that were implemented during the course of the past few years. Of course, during this quarter and the whole H1, FX was a support to OpEx and helped us to ease up some of the pressure that we experienced on the gross margin level. Cost of sales rose just slightly by 0.7 percentage point in H1, having a better trend during Q2. Altogether, our gross margins came down to 69.5%. Operating expenses as a whole continued to decrease. The total decrease was 6%. The pace was slowing a bit in Q2, coming a bit below of 5 percentage point.

Speaker #1: Of course, during this quarter and the whole first half of the year, Ethics was a support to OPEX and helped us to ease off some of the pressure that we experienced on the gross margin level.

Speaker #1: Cost of sales rose just slightly, by 0.7 percentage point in the first half, showing a better trend during Q2. Altogether, our gross margins came down to 69.5%.

Speaker #1: Operating expenses as a whole continue to decrease. The total decrease was 6%. The pace was slowing a bit in the second quarter, coming a bit below 5 percentage points.

Speaker #1: R&D declined by 6.5%, but overall R&D spending still remained at around 10% of our pharma revenues, which is an important KPI for us. The reason behind the decline in R&D is a planned reduction of biosimilar spending, and, of course, we are investing behind Women's Healthcare and CNS.

László András Kovács: R&D declined by 6.5%, but still overall R&D spending remained at around 10% of our pharma revenues, which is an important KPI for us. The result which caused the decline in R&D is a planned reduction of biosimilar spending, and of course, we are investing behind women's healthcare and CNS. Let me also reemphasize that these R&D costs may fluctuate between quarters as we are running multiple parallel programs together. Sales and marketing declined by 7%, also helped by FX in various regions, and some lower activities were evidenced in Asia Pacific, so namely in China region. We can see a clear improvement in our commercial efficiency. G&A is basically flat, and it's supported by the efficiency program. As a side note, this slide shows you all the figures that do not contain any restructuring costs.

Speaker #1: Let me also re-emphasize that these R&D costs may fluctuate between quarters, as we are running multiple parallel programs together. Sales and marketing declined by 7%, also held by ethics in various regions, and some lower activities were evidenced in the Asian and Pacific—so namely in China region—and we can see a clear improvement in our commercial efficiency.

Speaker #1: GNA is basically flat, and it's supported by the efficiency program. As a side note, this slide shows you all the figures that do not contain any restructuring costs.

Speaker #1: You can see an appendix at the back part of this presentation. Altogether, we spent HUF 4.5 billion on restructuring, mainly due to the reallocation of the API portfolio and the start of introducing the new cloud-based solutions.

László András Kovács: You can see an appendix at the back part of this presentation. Altogether, we spent HUF 4.5 billion on restructuring, mainly due to the reallocation of the API portfolio and the start of introducing the new cloud-based solutions. Turning to the profitability, I'm happy to say that profitability continued to improve in Q2, our Clean EBIT reaching 21% on a constant exchange rate, and there is an accelerating trend. Of course, we experienced some headwind in the FX, the reported figure is only HUF 151.8 billion, meaning a 3% increase in H1 2026. In this period, in Q2, we did not recognize any milestones. If I compare H1 to the previous year, there's HUF 1 billion lag of milestones that were collected compared to the previous period. The innovative segment was a significant contributor to our increased profitability.

Speaker #1: Turning to the profitability, I'm happy to say that profitability continued to improve in the second quarter. Our clean-up is reaching 21% on a constant exchange rate and there is an accelerating trend.

Speaker #1: Of course, we experienced some headwinds in the ethics segment, so the reported figure is only 151.8 billion Hungarian forints, meaning a 3% increase in H1 2026.

Speaker #1: In this period, in Q2, we did not recognize any milestones. If I compare H1 to the previous year, there's a $1 billion lag of milestones that were collected compared to the previous period.

Speaker #1: The innovative segment was a significant contributor to our increased profitability. Of course, Raylar and CNS remained our major profit engines, but Women's Healthcare grew at a clean-up margin of 18.5% this year, which was offsetting the slightly weaker Q1 that we evidenced.

László András Kovács: Of course, Vraylar and CNS remained our major profit engine, but Women's Health Care grew at a clean EBIT margin of 18.5% this year, which was offsetting the slightly weaker Q1 that we evidenced. Maybe it is worth to mention that with R&D costs, with the fluctuation, the growth rate in Women's Health Care might not that steep in the second part of the year. General Medicines returned to a somewhat more normal profitability rate, close to HUF 10 billion per quarter, but we see the results of the weaker top line that Gábor was discussing.

Speaker #1: Maybe it's worth mentioning that with R&D costs, and with the fluctuation, the growth rate in Women's Healthcare might not be that steep in the second part of the year.

Speaker #1: General medicines return to a somewhat more normal profitability rate, close to 10 billion Hungarian forints per quarter, but we see the results of the weaker top line that Gabor was discussing.

Speaker #1: Biosimilars, I'm personally very proud of what I see here because we reported significant growth figures on the top line, and although we came back to negative terms after having two consecutive quarters of profits, still the overall loss rate is only 2 billion Hungarian forints compared to 8.5 billion a year ago.

László András Kovács: Biosimilars, I am personally very proud of what I see here because we reported significant growth figures on the top line, and although we came back to negative terms after having two consecutive quarters of profits, but still the overall loss rate is only HUF 2 billion compared to HUF 8.5 billion a year ago. Altogether, we demonstrated that the operating leverage of our business model is strong and our profit growth was meaningfully faster than the revenue growth, even if I take out Vraylar from the picture. It is a very, very positive sign towards our profitability. If you take a look below the line, I can tell you that net profit was negatively affected by the FX headwind and our net profit came down to HUF 103.5 billion. The difference between clean EBIT and EBIT is not material, half of which is due to the restructuring costs.

Speaker #1: Altogether, we demonstrated that the operating leverage of our business model is strong, and our profit growth was meaningfully faster than the revenue growth, even if I take out Raylar from the picture.

Speaker #1: So, it's a very, very positive sign towards our profitability. If you take a look below the line, I can tell you that net profit was negatively affected by the FX headwind, and our net profit came down to HUF 103.5 billion.

Speaker #1: The difference between clean EBIT and EBIT is not material, half of which is due to the restructuring costs. EBIT had a very significant effect in Q2.

László András Kovács: FX had a very significant effect in Q2. Over HUF 32 billion of loss was recorded in Q2, while in Q1, cumulatively, we were still reporting some FX gains. I am proud to say that we managed to double our net interest income, but altogether, the huge FX loss, which half of this is unrealized at the moment, was a significant negative contributor. Taxes are accounted in line with the global minimum tax rate, there is nothing specific to report there. Going to the cash flows, we have seen record high free cash flows yet again, where the net working capital contribution was less than in the previous quarter, which helped our operating cash flows a lot. Cash conversion days as a consequence of the above-mentioned changes are slightly below the Q2 2025 numbers, but we see some level of flexibility. CapEx is well controlled.

Speaker #1: Over 32 billion Hungarian forints of loss was recorded in Q2, while in Q1, accumulatively, we were still reporting some ethics gains. I'm proud to say that we managed to double our net interest income, but altogether the huge ethics loss – half of which is unrealized at the moment – was a significant negative contributor.

Speaker #1: Taxes are accounted in line with the global new income tax rate, and there's nothing specific to report there. Going to the cash flows, we've seen record-high free cash flows yet again.

Speaker #1: There, the networking capital contribution was less than in the previous quarter, which helped our operating cash flows a lot. Cash conversion days, as a consequence of the above-mentioned changes, are slightly below the Q2 2025 numbers, but we see some level of flexibility.

Speaker #1: Capex is well controlled. We spent only 10 billion in the first half of the year, with some more spending coming in the second part, and we distributed the majority of the dividends in June. The remaining, almost 31 billion forints, will be paid in Q3, early September this year.

László András Kovács: We spent only HUF 10 billion in H1. Some more spending coming in the second part, we distributed the majority of the dividends in June, and the remaining almost HUF 31 billion will be paid in Q3, early September this year. Lastly, let me just guide you through on R&D projects, where R&D remains a cornerstone of our long-term growth strategy. RGH-202 reached phase II, and we see an unprecedented event when we are running three parallel phase II programs in CNS. Two with AbbVie on ABBV-932, and now we are starting with RGH-202, which is our own compound. You can see that we discontinued one program in Women's Health Care.

Speaker #1: And lastly, let me just guide you through our R&D projects. R&D remains a cornerstone of our long-term growth strategy. Compound 202 reached Phase II, and we see an unprecedented event as we are running three parallel Phase II programs in CNS.

Speaker #1: So, two with AbbVie on compound 932, and now we are starting with 202, which is our own compound. You can see that we discontinued one program in Women's Healthcare.

Speaker #1: For me, it's also a good sign because we are very, very strict, and we have a rigorous review system, which happened in June. We decided one program is not worth further reinvesting into, but we are proceeding with the rest of the programs.

László András Kovács: For me, it's also a good sign because we are very, very strict and we have a rigorous review system, which happened in June, we decided one program is not worth to further invest into it, but we are proceeding with the rest of the programs. On the General Medicine part, if you may remember, Mr. Tamás Szolyák told you in Q1 that we are launching several projects, so you can see the evidence that many new developments reached the final stage and hit the market. That's what we wished to share with you, I'm handing back over to Robi.

Speaker #1: And on the general medicine part, if you may remember, Mr. Tomasz Sojak told you in Q1 that we are launching several projects. So you can see the evidence that many new developments reached the final stage and hit the market.

Speaker #1: That's what we have to share with you, and I'm handing back over to Robin.

Speaker #2: Yes, thank you very much, gentlemen. Now we are ready to take your questions. Again, please either use the "Raise Hand" function in Teams or put your questions into the chat box, just as Kasia Kosiorek has already done.

Róbert Réthy: Yes. Thank you very much, gentlemen. Now we are ready to take your questions. Again, either raise your hand function in the Teams or put your questions into the chat box, just as Katarzyna Kosiorek did already early during the call. We can cover these three questions first. The first question is related to our Women Health Care profitability. I'm not sure who wants to-

Speaker #2: Early during the call, so we can cover these three questions first. So, the first question is related to our Women's Healthcare profitability. I'm not sure who wants to.

Speaker #1: I'm happy to take this. So yeah, actually, what you did is almost, almost precise. So it's a mix of all of the factors.

László András Kovács: I'm happy to take this. Yeah, actually what it is almost precise. It's a mix of all of the factors. The product mix helped us a lot. Some of the high profitability products that are shipped to far away markets like China and Mexico helped a bit.

Speaker #1: Product mix helped us a lot. Some of the high profitability products that are shipped to faraway markets, like China and Mexico, helped a bit.

Speaker #1: And we can say that we only spent around 40% of the expected R&D for Women's Healthcare in the first part of the year.

Róbert Réthy: We can say that we only spent around 40% of the expected R&D to business healthcare in the first part of the year. If everything will progress in line with our expectations, there's going to be a higher R&D spending in the second part. The 18.5% Clean EBIT rate is a bit exceptional for this period. We expect that it's going to be lower on the overall yearly average. Of course, we are just aiming for the 20%, but it's not going to happen overnight. Year by year, we want to see the improvement. Thank you. The second question is about the upgraded Clean EBIT guidance. I mean, first of all, this is on a constant exchange rate basis, so exchange rates have nothing to do with the upgrade what we made in this particular profit metrics.

László András Kovács: We can say that we only spent around 40% of the expected R&D to business healthcare in the first part of the year. If everything will progress in line with our expectations, there's going to be a higher R&D spending in the second part. The 18.5% Clean EBIT rate is a bit exceptional for this period. We expect that it's going to be lower on the overall yearly average. Of course, we are just aiming for the 20%, but it's not going to happen overnight. Year by year, we want to see the improvement.

Speaker #1: So, if everything progresses in line with our expectations, there will be higher R&D spending in the second part. So the 18.5% clean EBIT rate is a bit exceptional for this period.

Speaker #1: We expect that it's going to be lower on the overall yearly average. But of course, you know, we are just aiming for the 20%, but it's not going to happen overnight.

Speaker #1: So year by year, we want to see the improvement.

Speaker #2: Thank you. Second question is about the upgraded clean EBIT guidance. I mean, first of all, this is on a constant exchange rate basis, so exchange rates have nothing to do with the upgrade.

Róbert Réthy: Thank you. The second question is about the upgraded Clean EBIT guidance. I mean, first of all, this is on a constant exchange rate basis, so exchange rates have nothing to do with the upgrade what we made in this particular profit metrics.

Speaker #2: What we made in this particular profit metrics—the question is also, in which segment do we feel most confident delivering the upgraded guidance?

Róbert Réthy: The question is also, in which segment we feel most confident delivering the upgraded guidance. Perhaps a bit of a background what led us to this guidance upgrade.

Speaker #2: Perhaps a bit of background on what led us to this guidance upgrade.

Speaker #1: Yeah, so I think across the board we see on the cost side the impact from many years of restructuring and transformation. So there is a sense that this year will we we will reap a a larger share of those benefits than we had hoped in or that we foresaw at in the planning phase.

Gábor Orbán: Yeah. I think across the board, we see, on the cost side, the impact from many years of restructuring and transformation. There is a sense that this year we will reap a larger share of those benefits than we had hoped or that we foresaw in the planning phase. On the other hand, specifically the biotechnology business unit is expected to deliver closer to breakeven than previously expected. Those together combine into above expectation ex-CNS margin. Now, of course, as you saw in the H1, even if the H2 Vraylar performance only equals the planned amount, we'd have booked a significant Vraylar upside in H1. That is one of the obvious drivers. Aside from that, we see biotech delivering, and we see G&A, sales and marketing, and COGS all contributing to a higher ex-CNS clean EBIT margin.

Speaker #1: On the other hand, specifically, the biotechnology business unit is expected to deliver closer to break even than previously expected, so those together can combine into above expectation.

Speaker #1: XCNS margin. Now, of course, as you saw in the first half, even if the second half Vraylar performance only equals the planned amount, we have booked a significant Vraylar upside in H1.

Speaker #1: So that is one of the obvious drivers. But aside from that, we see biotech delivering, and we see G&A and sales and marketing and COGS all contributing to higher XCNS clean EBIT margin.

Speaker #2: And the third question—thank you, Gabor—the third question is on the use of cash, or basically a capital allocation question. What is the primary use of cash? Whether it's going into business development, capex, or dividend buyback?

Róbert Réthy: The third question, thank you, Gábor. Third question is on the use of cash, or basically capital allocation question. What is the primary use of cash, whether it's going into business development, CapEx, or dividend buyback?

Speaker #3: Yeah, so we had some some serious discussions with the board early this year and we are and also the the majority of our shareholders are supporting the dividend, not the not the buyback.

Gábor Orbán: Yeah. We had some serious discussions with the board early this year. Also, the majority of our shareholders are supporting the dividend, not the buyback. Of course, with this high amount of net cash, we are pursuing licensing and other M&A type of activities. We are working on it on a daily basis. We will come back to you and report as soon as there's anything to announce. That's a high priority. CapEx, we continue to spend on CapEx. We have an internal policy with a declining cap spending. If you don't see any disturbance on the market or in the supply chain, We will follow that path.

László András Kovács: Yeah. We had some serious discussions with the board early this year. Also, the majority of our shareholders are supporting the dividend, not the buyback. Of course, with this high amount of net cash, we are pursuing licensing and other M&A type of activities. We are working on it on a daily basis. We will come back to you and report as soon as there's anything to announce. That's a high priority. CapEx, we continue to spend on CapEx. We have an internal policy with a declining cap spending. If you don't see any disturbance on the market or in the supply chain, We will follow that path.

Speaker #3: And of course, with this high amount of net cash, we are pursuing licensing and other M&A type of activities. We are working on it on a daily basis, and we will come back to you and report as soon as there's anything to announce.

Speaker #3: So that's a that's a high priority. Capex, we we continue to spend on capex. We have an internal policy with a decline in cap spending and if you don't see any disturbance on the market or in the supply chain, then then we will follow that path.

Speaker #3: So, in a nutshell, you should expect dividends in line with our capital allocation policy: a fixed dividend and some extra if no big M&A will come through.

Gábor Orbán: In a nutshell, you should expect dividends in line with our capital allocation policy, a fixed dividend, and some extra, if no big M&A will come through, but our primary goal is to create long-term value with M&A activities.

László András Kovács: In a nutshell, you should expect dividends in line with our capital allocation policy, a fixed dividend, and some extra, if no big M&A will come through, but our primary goal is to create long-term value with M&A activities.

Speaker #3: But our primary goal is to create long-term value with M&A activities.

Speaker #1: Let me let me give my interpretation of of this of this cash capital allocation question. So if we are very good as the management team if the management team is excellent, then it's going to be business development and licensing opportunities.

Róbert Réthy: Let me give my interpretation of this capital allocation question. If we are very good as the management team, if the management team is excellent, then it's going to be business development and licensing opportunities. If the management is only good, then it'll be dividend. Then it will mean that we'll have missed some of those acquisition targets that we have on the list currently. In either case, shareholders will be very happy. In both cases, they will be happy. Hope this answers your questions, Kasha. If not, then let us know. Before continuing with the chat box, let me just turn to those participants who are using the raise your hand function. First question, Bram from Bude. Go ahead, Bram.

Gábor Orbán: Let me give my interpretation of this capital allocation question. If we are very good as the management team, if the management team is excellent, then it's going to be business development and licensing opportunities. If the management is only good, then it'll be dividend. Then it will mean that we'll have missed some of those acquisition targets that we have on the list currently. In either case, shareholders will be very happy.

Speaker #1: If the management is only good, then it will be a dividend. Because then it means that we'll have missed some of those acquisition targets that we have under this currently.

Speaker #1: In either case, shareholders will be very happy.

Speaker #3: In both cases, shareholders will be happy.

Róbert Réthy: In both cases, they will be happy. Hope this answers your questions, Kasha. If not, then let us know. Before continuing with the chat box, let me just turn to those participants who are using the raise your hand function. First question, Bram from Bude. Go ahead, Bram.

Speaker #2: Who—who this answers your questions, Kasia? If not, then let us know. Before continuing with the chat box, let me just turn to those participants who are using the raise—raise your hand function.

Speaker #2: So, first question, Bram from Wood. Go ahead, Bram.

Speaker #4: No, I'm unmuted. Hi, a good set of results. Yeah, I had a few questions. If you could, perhaps, from the centralizing of APIs in Durag, could you put a number on the uplift to gross margins?

[Analyst]: Now I'm unmuted. Hi. A good set of results. Yeah, I had a few questions. If you could, perhaps, from the centralizing of APIs in Dorog, could you put a number on the uplift to gross margins? And I guess that's going to be primarily in, I don't know, primarily in Gen Med. That would be the first question. The second question was with regards to rationalization of the commercial network, and I get to a certain extent of R&D. Could you just summarize the steps that you've been taking there? Yeah, maybe how the results are better than you've expected. The last question is with regard to Eastern Europe. To what extent is that slowdown, because it is rather visible, the result of rationalization steps you've taken? To what extent is it to do with individual countries, say Uzbekistan?

Bram Buring: Now I'm unmuted. Hi. A good set of results. Yeah, I had a few questions. If you could, perhaps, from the centralizing of APIs in Dorog, could you put a number on the uplift to gross margins? And I guess that's going to be primarily in, I don't know, primarily in Gen Med. That would be the first question. The second question was with regards to rationalization of the commercial network, and I get to a certain extent of R&D. Could you just summarize the steps that you've been taking there? Yeah, maybe how the results are better than you've expected. The last question is with regard to Eastern Europe. To what extent is that slowdown, because it is rather visible, the result of rationalization steps you've taken? To what extent is it to do with individual countries, say Uzbekistan?

Speaker #4: And I guess that's going to be primarily in, I don't know—primarily in general medicine. So that would be the first question. The second question was with regards to rationalization of the commercial network.

Speaker #4: And I get, to a certain extent, out of R&D. Could you just summarize the steps that you've been taking there? And maybe explain how the results have been better than you expected.

Speaker #4: And the last question is with regard to Eastern Europe, to you know, to what extent is that slowdown because it is rather visible the result of rationalization steps you've taken.

Speaker #4: To what extent is it to do with individual countries, say, Uzbekistan? And what do you expect in terms of the growth in Russia in the second half of the year?

[Analyst]: What do you expect in terms of the growth in Russia in the H2 of the year? When I look at it in movable terms, it was contraction. Those are my three questions.

Bram Buring: What do you expect in terms of the growth in Russia in the H2 of the year? When I look at it in movable terms, it was contraction. Those are my three questions.

Speaker #4: Because when I look at it in rural terms, it was—it was a contraction. So those are my three questions.

Speaker #1: Thank you very much, Bram. Let me take the first one first. And there, I would like to refer you back to what we presented and published in March last year.

Gábor Orbán: Thank you very much, Bram. Let me take the first one first. There I would like to refer you back to the capital markets document that we presented and published in March last year. All of these efforts fall into the categorization that you have on the waterfall chart there. That is what we indicated at the time to be the impact of all those efforts, efficiency programs, et cetera. I cannot recall the diagram off the top of my head. You remember there was a contribution from the right sizing of infrastructure in the move from 10% ex-CNS clean EBIT ratio to 20%. The contribution there is maybe 1 to 1.5 percentage points. This concentration of, and technology transfer, reallocation of manufacturing Dorog is part of that effort.

Speaker #1: All of these efforts fall into the categorization that you have on the waterfall chart there. That's what we indicated at the time to be the impact of all those efforts—efficiency programs, et cetera.

Speaker #1: So if you—I cannot recall the diagram off the top of my head, but you remember there was a contribution from the right sizing of infrastructure in the move from a 10% XCNS clean EBIT ratio to 20%.

Speaker #1: And the contribution there is maybe 1 to 1.5 percentage points. This concentration of R&D and technology transfer, reallocation of manufacturing during Q2, is part of that effort.

Speaker #1: In fact, it's a very significant part of that effort. It contributes more than half of that gap closing. The same or something similar is true for GNA and sales and marketing, which you referred to as the rationalization of the commercial footprint.

Gábor Orbán: In fact, it is a very significant part of that effort, and it contributes more than half of that gap closing. The same or something similar is true for G&A and sales and marketing, which you referred to as the rationalization of the commercial footprint. We are in overhead fighting mode. That is the common denominator across these projects. We are fighting overhead. We want sales and marketing costs to be investment rather than overhead costs. G&A is another area where we are taking a similar initiative. In particular, we have reorganized our commercial affiliate network in order to provide more of the services out of the headquarter, thereby imposing stricter discipline and cost management on the affiliates, while at the same time reducing the reliance of these affiliates on local resources. Local meaning in-house or externally sourced, outsourced services.

Speaker #1: We are in overhead fighting mode. That's the common denominator across these projects: you're fighting overhead. We want sales and marketing costs to be considered investments rather than overhead costs.

Speaker #1: And GNA is another area where we are making a similar taking a similar initiative. In particular, we've reorganized our commercial affiliate network in order to provide more of the services out of the headquarter and thereby imposing stricter discipline and and cost management on the affiliates, while at the same time reducing the reliance of these affiliates on local meaning in-house or externally sourced outsourced services.

Speaker #1: This is true for IT, for procurement, for all sorts of G&A items. And so these are the kinds of efforts that we are taking or making to reduce overhead, and this shows up gradually in our G&A ratio, and it shows up as an improvement to commercial efficiency also.

Gábor Orbán: This is true for IT, for procurement, for all sorts of G&A items. These are the kinds of efforts that we are taking to reduce overhead, and this shows up gradually in our G&A ratio, and it shows up as an improvement to commercial efficiency also. Now, this is not the only thing that we are doing to improve commercial efficiency because we are reorganizing the field force. We are reorganizing the lines. We are re-segmenting the HCPs that we are working with. We are reallocating resources and money to products that have higher growth potential. Those are the usual types of measures to improve future sales and optimize resources. Just look for the relationship between the capital markets document, our annual or quarterly reports, and these actions that are underway. This is how it all hangs together.

Speaker #1: Now, this is not the only thing that we're doing to improve commercial efficiency, because we are reorganizing the field force. We are reorganizing the lines.

Speaker #1: We're resegmenting the HCPs that we are working with. We are reallocating resources and money to products that have higher growth potential. Those are the usual types of measures to improve future sales.

Speaker #1: And optimize resources. So just look for the relationship between the capital markets document, our annual or quarterly reports, and these actions that are underway.

Speaker #1: This is how it all hangs together.

Speaker #2: Excellent.

Speaker #1: Your second point was around—what was it?

[Analyst]: Excellent.

Bram Buring: Excellent.

Gábor Orbán: Your second point was around. What was it?

Speaker #2: It was the commercial actions, I think.

Speaker #1: Yes, I just covered that.

Róbert Réthy: It was the commercial excellence.

Speaker #2: Oh, yeah. The third one was Eastern Europe.

Gábor Orbán: Yes, I just covered that.

Róbert Réthy: You covered that.

[Analyst]: Okay. Yeah.

Bram Buring: Okay. Yeah.

Speaker #1: Eastern Europe. The extent to which it's a consequence of those efficiency programs—no. There is a very minor contribution from portfolio pruning.

Gábor Orbán: The third one.

[Analyst]: The third one was Eastern Europe.

Bram Buring: The third one was Eastern Europe.

Gábor Orbán: Eastern Europe. The extent to which it's a consequence of those efficiency programs. No. There is a very minor contribution from portfolio pruning to Eastern European, Central Asian revenues. It has more to do with the following three factors. One, the erosion of the legacy portfolio. We have to face the fact that this process has not ended. We still have old traditional products whose market share is more vulnerable, whose pricing or label is vulnerable, and we have seen some of those effects weighing last year as well as this year on revenues in Gen Med, which is primarily Eastern Europe and Central Asia. The second thing was the rationalization of distributor inventory.

Speaker #1: To Eastern European and Central Asian revenues. It has more to do with the following three factors: one, the erosion of the legacy portfolio. We have to face the fact that this process has not ended.

Speaker #1: We still have old traditional products whose market share is more vulnerable, whose pricing or label is vulnerable. And we have seen some of those effects weighing last year as well as this year.

Speaker #1: On revenues and GenMed. Which is primarily Eastern Europe and Central Asia. The second thing was the rationalization of distributor inventory. And this is a a complicated way of saying we we had to impose stronger discipline on how much inventory our wholesalers hold against what discounts do they hold those inventories and what kind of financial exposure is correlated with that with with with those receivables.

Gábor Orbán: Now, this is a complicated way of saying we had to impose stronger discipline on how much inventory our wholesalers hold, against what discounts do they hold those inventories, and what kind of financial exposure is correlated with those receivables. More rigor had to be applied to all of those, and the temporary consequence is a much more choppy, volatile Gen Med revenue stream. This is what I meant by we have to get out of the woods to recover from that situation, and we'll spend much of this year recovering from that. Of course, there was last year's Q3, that was an additional shock, but seriously, that looks like a temporary one-off and it shouldn't define the future for Gen Med.

Speaker #1: So, all of that had to—more rigor had to be applied to all of those. And the temporary consequence is a much more choppy, volatile GenMed revenue screen.

Speaker #1: This is what I meant by, we have to get out of the woods to recover from that situation. And we'll spend much of this year recovering from that.

Speaker #1: Of course, there was last year's Q3 that was an additional shock. But seriously, that looks like a temporary, one-off event, and it shouldn't define the future for GenMed.

Speaker #1: But these others are more medium-term effects. And some of that weakness in Eastern Europe and Central Asia have to do with this refinement of the business model—let's say, polishing of the business model.

Gábor Orbán: These others are more medium-term effects and some of that weakness in Eastern Europe and Central Asia have to do with this refinement of the business model, let's say, polishing of the business model.

Speaker #2: Understood. Thank you.

Speaker #3: So that also means, I think, it can translate this into a one of one of the concrete questions that probably Russia will be doing better in the second half also because the base was lower compared to the first half and the the world against the high base and and and a little bit intentionally held back deliveries in June this year.

[Analyst]: Understood. Thank you.

Bram Buring: Understood. Thank you.

Róbert Réthy: That also means, I think it can translate this into one of the company questions that probably Russia will be doing better in H2 also because the base was lower compared to H1 and the other, we were against a high base and there was a bit intentionally held back deliveries in June this year.

Speaker #3: Yes, which also partially explains, I think, one of the questions that Lukash asked in the chat box: if we see revenue growth in constant exchange rate terms in GenMed by the end of the year, then most probably yes, because if you look at the intra-year trend, already in the second quarter we were around flat in constant exchange rate terms, and then in the second half we are again working with a low base.

Gábor Orbán: Yes.

Róbert Réthy: Which also partially explains, I think one of the questions that Lukas asked in the chat box, that if you see revenue growth in constant exchange rate terms in Genmed by the end of the year and most probably, yes, because if you look at the intra-year trend, Q2 already we were around flat in constant exchange rate terms. H2, we are again working with a low base. Definitely there's going to be growth in H2 in general medicines, and probably also for the full year in serving constant exchange.

Speaker #3: So definitely there's going to be growth in the second half in in general medicines and and probably also for the full full year in in in in fair constant exchange.

Speaker #1: Yes.

Speaker #3: Good. So let's move to the next question from Gábor Bukta. Gábor, go ahead.

Gábor Orbán: Yes.

Róbert Réthy: Good. Let's move to the next question from Gábor Orbán. Gábor, go ahead.

Speaker #4: Hi. Thanks for your presentation. First, yeah, I have a follow-up because absolutely, the GenMed— and yeah, so when should they turn around and become visible?

[Analyst]: Hi, thanks for your presentation. First, I have a follow-up because, absolutely, the Gen Med is still the obvious weak spot, I guess. So when should the turnaround become visible? Next year or in 2028 or when? I am also interested. Moving on to my next question, you already announced the extension of the partnership with Adalvo and how the GLP-1 could become strategically important. If you could you please quantify what do you expect from the project? The third question is, I saw that you had to impair some assets or inventories in the Bio segment and it is related to new products or what has caused this impairment? Thank you.

Bram Buring: Hi, thanks for your presentation. First, I have a follow-up because, absolutely, the Gen Med is still the obvious weak spot, I guess. So when should the turnaround become visible? Next year or in 2028 or when? I am also interested. Moving on to my next question, you already announced the extension of the partnership with Adalvo and how the GLP-1 could become strategically important. If you could you please quantify what do you expect from the project? The third question is, I saw that you had to impair some assets or inventories in the Bio segment and it is related to new products or what has caused this impairment? Thank you.

Speaker #4: Next year, or in 2028, or when? So, yeah, I'm also interested. And going on to my next question—you already announced the extension of the partnership with ADAVO.

Speaker #4: And how did GRP-1 could become strategically important? If if you could, could you please quantify what do you expect from the project? And and the first question, is I I saw that you had to impair some assets or inventories in the BIOS segment.

Speaker #4: And is this related to new products, or what has caused this impairment? Thank you.

Speaker #1: Thank you for those questions, Gabor. On the GenMed question, my answer is: we indicated two quarters ago, and also last quarter, that this would be a protracted recovery from the hit that we suffered last year.

Gábor Orbán: Thank you for those questions, Gábor. On the Gen Med question, my answer is, we indicated two quarters ago and also last quarter that this would be a protracted recovery from the hit that we suffered last year. There were a series of unfortunate negative shocks to the product portfolio and some of our markets, including Uzbekistan, Kazakhstan. It will take time to get back to normal. What is normal? Mid-single-digit, steady growth, low volatility. That is normal for Gen Med. We expect to get there starting next year. On the second one, GLP-1s are a focus area for the Gen Med business unit. They have been for two or three years, and the first milestone in that history was March last year when we announced the first item into this portfolio that we are building.

Speaker #1: And there were a series of unfortunate, negative shocks to the product portfolio and some of our markets, including Uzbekistan and Kazakhstan. So it'll take time to get back to normal.

Speaker #1: What is normal? Mid-single-digit steady growth, low volatility. That's normal for GenMed. And we expect to get there, starting next year. On the second one, GLP-1s are a focus area for the GenMed business unit.

Speaker #1: They have been for two or three years. And the first milestone in that history was March last year, when we announced the first item into this portfolio that we are building.

Speaker #1: We are building this portfolio in a slightly different way compared to the traditional way of nominating, developing, manufacturing, upscaling, and commercializing. In this space, the business models have changed.

Gábor Orbán: We are building this portfolio in a slightly different way compared to the traditional way of nominating, developing, manufacturing, upscaling, and commercializing. In this space, the business models have changed. Adalvo being one of the spearheads or one of the front runners of pioneers of this aggregator model in which you team up with a number of partners who finance, commercialize, manufacture, develop the product for you. This arrangement that we have with Adalvo and also with the Hetero group of India, is very similar in the sense that we contribute both financial technology and, most importantly, commercial capability to the story. How does it fit from a business perspective or from a portfolio construction perspective? The through line here is longevity, which is becoming more and more in the focus in the developed world. As you know, the best-selling products, not only in pharma but globally, are GLP-1s.

Speaker #1: ADAVO being one of the spearheads, or one of the front runners or pioneers, of this aggregator model in which you team up with a number of partners who finance, commercialize, manufacture, and develop the product for you.

Speaker #1: This arrangement that we have with ADAVO and also with the Hetero Group of India is very similar, in the sense that we contribute both financial technology and, most importantly, commercial capability to the story.

Speaker #1: How does it fit from a business perspective or from a portfolio construction perspective? The through-line here is longevity, which is becoming more and more in focus in the developed world.

Speaker #1: As you know, the best-selling products not only in pharma but globally are GLP-1s. And when they go off patent in the 2030s, GLP-1s will be one of the, if not the most, important quality of life and longevity products.

Gábor Orbán: When they go off patent in the 2030s, GLP-1s will be one of the, if not the most important quality-of-life and longevity products. Where do we fit in with that story? As you know, women's health is mostly, almost exclusively, therapies for non-life-threatening disorders. You can live with endometriosis. It's very, very unpleasant and debilitating, but you won't die. You can live with infertility. You won't die because you're infertile. Contraception, you can live without. Menopause treatment, you can live without it. GLP-1s also, you can live without it. The difference is, a significant amount of funds and consumer demand goes to these quality-of-life type of products. For example, in fertility clinics, one of the issues that have to be tackled before the fertility treatment is losing weight.

Speaker #1: Now, where do we fit in with that story? As you know, women's health is mostly—not, well, yeah, almost exclusively—non-therapies for non-life-threatening disorders.

Speaker #1: You can live with endometriosis. It's very, very unpleasant and debilitating, but you won't die. You can live with infertility. You won't die because you're infertile.

Speaker #1: Contraception, you can live without. Menopause, treatment, you can live without it. GRP-1s also, you can live without it. The but the but the difference is a significant amount of fund funds and consumer demand goes to these quality of life type of products.

Speaker #1: And for example, in infertility clinics, one of the issues that have to be tackled before the fertility treatment is losing weight. In menopause, very often, estrogen deficiency is correlated with weight gain.

Gábor Orbán: In menopause, very often, estrogen deficiency is correlated with weight gain, which is treated alongside estrogen deficiency. Hot flashes are not the only implication of menopause or low estrogen levels. It's also bone density. It's also neurodegeneration. It's also cardiovascular risks. To the extent that the gynecologist is the GP of the woman, the GLP-1s will also be very much part of the therapy that will be recommended or prescribed to women. GLP-1s are used by more women than men. A lot of the prescriptions, maybe most of the prescriptions, are written by gynecologists. This is a very logical and profoundly connected product offering to what we already do in women's health and in menopause particularly. That's the point of us working on GLP-1s.

Speaker #1: Which is treated alongside estrogen deficiency. Hot flashes are not the only implication of menopause or low estrogen levels. It's also bone density. It's also neurodegeneration.

Speaker #1: It's also cardiovascular risks. So to the extent that the gynecologist is the GP of the woman, the GLP-1s will also be very much part of the therapy that will be recommended or prescribed to women.

Speaker #1: GLP-1s are used by more women than men. A lot of the prescriptions—maybe most of the prescriptions—are written by gynecologists. So this is a very logical and profoundly connected product offering to what we already do in women's health and in menopause particularly.

Speaker #1: That's the point of us working on GRP-1s.

Speaker #2: With bioimpairment, yes, it's related to one of our new products actually—a licensed product where the partner had some manufacturing issues, and we suffered that impairment loss.

Róbert Réthy: With bioimpairment, yes, it's related to one of our new products, actually a licensed product, where the partner had some manufacturing issues, and we suffered that impairment loss. Hopefully, it should be considered as a one-off. There's the asset part and the inventory that is just related to the normal operation. As you know, that you are launching new products, so it's a learning process. To do commercial production is not the same than we did for the clinical trials and the initial batches. That's sort of related to that one.

László András Kovács: With bioimpairment, yes, it's related to one of our new products, actually a licensed product, where the partner had some manufacturing issues, and we suffered that impairment loss. Hopefully, it should be considered as a one-off. There's the asset part and the inventory that is just related to the normal operation. As you know, that you are launching new products, so it's a learning process. To do commercial production is not the same than we did for the clinical trials and the initial batches. That's sort of related to that one.

Speaker #2: So hopefully it should be considered as a one-off. So that's the asset part and the inventory that's just related to the normal operation. I mean, as you know, we were launching new products.

Speaker #2: So it's a learning process. It's not the same to do commercial production; it's not the same as when we did it for the clinical trials and the initial batches.

Speaker #2: So that's sort of related to that one.

Speaker #3: Okay. But in this case, is it possible that you will get some kind of refund?

[Analyst]: Okay. In this case, is it possible that you will get some kind of refund?

Bram Buring: Okay. In this case, is it possible that you will get some kind of refund?

Speaker #2: If from an external source there, we are always pursuing the opportunity. So maybe to some extent it's possible, or at least not impossible. I would put it this way.

Róbert Réthy: From external source, we are always pursuing the opportunity, maybe to some extent it's possible or not impossible. I would put it this way.

László András Kovács: From external source, we are always pursuing the opportunity, maybe to some extent it's possible or not impossible. I would put it this way.

Speaker #3: Thank you very much.

Speaker #2: Thank you. Next question from David Gorchinski. David, the floor is yours.

[Analyst]: Thank you very much.

Bram Buring: Thank you very much.

Róbert Réthy: Thank you. Next question from Dawid Górzyński. Dawid, the floor is yours.

Speaker #4: Hi. Thank you for taking my question. I have three, and I will start with the one on the 932 project. There was no update about the project from AbbVie on the last call, and I wonder if you have something new to share about the status of the project.

Dawid Górzyński: Hi. Thank you for taking my question. I have three. I will start with the one on ABBV-932 project. There was no update about the project from AbbVie on the last call. I wonder if you have something new to share about the status of the project. My assumption right now is that the decision will be made only after GAD results next year. Please correct me on that if I have good feeling. The first one.

Speaker #4: My assumption right now is that the decision will be made only after the GAD results next year. So please correct me on that if I have a good feeling.

Speaker #4: So the first one.

Speaker #2: I mean, because AbbVie didn't communicate we are not really able to communicate too much either. But I can so basically the official line is that the parties are still evaluating the the phase two data and and and seeing how to move or how to continue development of this of this molecule.

Róbert Réthy: AbbVie didn't communicate, we are not really able to communicate too much either. Basically, the official line is that the parties are still evaluating the phase II data and seeing how to move or how to continue development of this molecule. I think on the second one, perhaps we can say that that's never been the plan to wait for the GAD data before making a decision on the bipolar I disorder development. The two are not related to each other.

László András Kovács: AbbVie didn't communicate, we are not really able to communicate too much either. Basically, the official line is that the parties are still evaluating the phase II data and seeing how to move or how to continue development of this molecule. I think on the second one, perhaps we can say that that's never been the plan to wait for the GAD data before making a decision on the bipolar I disorder development. The two are not related to each other.

Speaker #2: But I think on the second one, perhaps I can we can say that that that that's never been the plan to wait for the GAD data before making a decision on the bipolar bipolar one disorder development.

Speaker #2: So, the two are not related to each other.

Speaker #4: Especially because AbbVie's commitment, as well as ours, is to get there with this development by the time Brainrod loses exclusivity. This would not be possible if we had to wait another year for the GAD results.

Gábor Orbán: Especially because AbbVie's commitment, as well as ours, is to get there with this development by the time Vraylar loses exclusivity. This would not be possible if we had to wait another year for the GAD results. No, your logic is not quite right.

Speaker #4: So, no, your logic is not quite right.

Speaker #3: Okay. Thank you.

Speaker #2: And second one on Phil Revy. Any update maybe on the partnering talks in the U.S. market? Partnering.

Dawid Górzyński: Okay, thank you. Second one on filgotinib. Any update maybe on the partnering talks in the US market?

Speaker #4: No, Phil Revy.

Róbert Réthy: Partnering talks?

Dawid Górzyński: Partnering talks?

Speaker #2: Okay. So, we are pursuing this opportunity. Our commitment is to bring Phil Revy to the market in 2027, and we are just pursuing the opportunity with partners and also evaluating if we can do it without partners.

Dawid Górzyński: Partnering.

Róbert Réthy: No, filgotinib.

Róbert Réthy: Filgotinib. Yeah. Okay. We are pursuing this opportunity. Our commitment is to bring filgotinib to the market in 2027. We are just pursuing the opportunity with partners and also evaluating if we can do it without partners. Unfortunately, there's nothing that we can officially announce, but if there's going to be anything, we will let you know as soon as possible.

László András Kovács: Filgotinib. Yeah. Okay. We are pursuing this opportunity. Our commitment is to bring filgotinib to the market in 2027. We are just pursuing the opportunity with partners and also evaluating if we can do it without partners. Unfortunately, there's nothing that we can officially announce, but if there's going to be anything, we will let you know as soon as possible.

Speaker #2: Unfortunately, there's nothing that we can officially announce. But if there's going to be anything, we will let you know as soon as possible.

Speaker #4: That's a very serious interest, and we'll update you ASAP.

Gábor Orbán: There's very serious interest and we'll update you ASAP.

Speaker #2: So it's two things: the filing and the partnering, and both are in progress.

Dawid Górzyński: Please.

Gábor Orbán: Two things.

Gábor Orbán: Both things, the filing and the partnering, both are in progress.

Speaker #4: Yeah.

Speaker #2: Okay, thanks. And the last one: a follow-up to the couple's question on GLP-1 products. When do you expect the first launches? Is it 2030 or maybe earlier?

Gábor Orbán: Yeah.

Dawid Górzyński: Okay, thanks. The last, I guess a follow-up, after Gábor's question on GLP-1 products. When do you expect the first launches? Is it 2030 or maybe earlier?

Speaker #4: In most markets, the LOE for SEMA, the LOE is early 30s, 31, 32. And for for Tisdapathid, it's it's much later. It's more like 36, 38.

Róbert Réthy: In most markets, the LOE for semaglutide, the LOE is early 2030s, 2031, 2032. For tirzepatide, it's much later. It's more like 2036, 2038.

Gábor Orbán: In most markets, the LOE for semaglutide, the LOE is early 2030s, 2031, 2032. For tirzepatide, it's much later. It's more like 2036, 2038.

Speaker #4: But in certain individual markets, either there is no patent existing, or there is an earlier loss of exclusivity. It may happen earlier, but those will be rather individual cases.

Róbert Réthy: In certain individual markets where either there's no patent existing or it's an earlier loss of exclusivity, it may happen earlier, but those will be rather individual cases. There's no generalized answer to this, but bulk majority of the launch and the generic sales will take place in the 2030s.

Gábor Orbán: In certain individual markets where either there's no patent existing or it's an earlier loss of exclusivity, it may happen earlier, but those will be rather individual cases. There's no generalized answer to this, but bulk majority of the launch and the generic sales will take place in the 2030s.

Speaker #4: So it's there's no generalized answer. This but bulk majority of the of the launch and and and the sales the generic sales will will take place in the 30s.

Speaker #4: So the steady cash flow from this is way out. So I think Gab B also had a point when he questioned the fit of these deals to our 2035 strategy.

Róbert Réthy: The steady cash flow from this is way out. I think Gabor also had a point when he questioned the fit of these deals to our 2035 strategy. The reason I explained to you in maybe a complicated way, this new business model that Adalvo and also the one we have with Hetero, the point of this business model is we have a global dossier to which we retain the rights to certain territories, but the other territories get out-licensed along the way before LOE. They generate some kind of license fee, upfront and milestones and whatnot, even before market entry can happen. Does that make sense? There's cash flows before LOE.

László András Kovács: The steady cash flow from this is way out. I think Gabor also had a point when he questioned the fit of these deals to our 2035 strategy. The reason I explained to you in maybe a complicated way, this new business model that Adalvo and also the one we have with Hetero, the point of this business model is we have a global dossier to which we retain the rights to certain territories, but the other territories get out-licensed along the way before LOE. They generate some kind of license fee, upfront and milestones and whatnot, even before market entry can happen. Does that make sense? There's cash flows before LOE.

Speaker #4: But the reason I explained to you—and maybe in a complicated way—this new business model with Adavo, and also the one we have with Hether, the point of this business model is that we have a global dossier to which we retain the rights to certain territories.

Speaker #4: But the other territories get out-licensed along the way, before LOE. So, they generate some kind of license fee upfront, and milestones and whatnot, even before market entry.

Speaker #4: It can happen. Does that make sense? So, there are cash flows before LOE.

Speaker #2: Okay, okay. Hope I got it. So, let's solve from my side. Thank you. Thank you very much, David. Next question comes from Darius. Go ahead, please.

Dawid Górzyński: Okay. I hope I got it. That's all from my side. Thank you.

Róbert Réthy: Thanks.

Róbert Réthy: Thank you very much, Dawid. Next question comes from Darius. Go ahead, please.

Speaker #5: Hi, Darius from Jefferies. Thank you for taking my questions. First question on bio—if you could provide a bit more color on the denosumab launch, and specifically on the Toyori launch due to the tocilizumab biosimilar.

[Analyst] (Jefferies): Hi, Darius from Jefferies. Thank you for taking my questions. First question on biosimilars. If you could provide a bit more color on the denosumab launch and specifically on the Tuyory launch, the tocilizumab biosimilar, how do you see the progression there, and what's your early view?

Darius Saftoiu: Hi, Darius from Jefferies. Thank you for taking my questions. First question on biosimilars. If you could provide a bit more color on the denosumab launch and specifically on the Tuyory launch, the tocilizumab biosimilar, how do you see the progression there, and what's your early view?

Speaker #5: How do you see the progression there, and what's your early view?

Speaker #4: Okay. In both cases, we got there on time in the first wave, and we have a good, solid product. We had no questions during the regulatory phase.

Gábor Orbán: In both cases, we got there on time in first wave, and we have a good solid product. We had no questions during the regulatory phase, which tells me that we have a very solid dossier and a very solid technology, and I'm very proud of the team to have developed this very complicated biosimilar, both. The market environment is not homogeneous. It's not generally supportive. In some markets, we face tenders where the price levels are just prohibitively low, and we will not participate in those tenders. I expect for the price discovery mechanism to take a bit longer to find an equilibrium. There are other markets where the prices are attractive enough, and we can capture market share, in some markets more than others.

Speaker #4: Which tells me that we have a very solid dossier and a very solid technology, and I'm very proud of the team to have developed this very complicated biosimilar, both.

Speaker #4: The market environment is not homogeneous. It's not generally supported. In some markets, we face tenders where the price levels are just prohibitively low, and we will not participate in those tenders.

Speaker #4: I expect the price discovery mechanism to take a bit longer to find an equilibrium. But there are other markets where the prices are attractive enough, and we can capture market share.

Speaker #4: In in some markets, more than others. So in general, I think the the not I think, but the fact is the the launch has been successful.

Gábor Orbán: In general, I think the, not I think, but the fact is that the launch is being successful and we are ahead of the pack in many cases. There is unfortunately a lot of disruption coming from East Asia, Korea, in the form of tenders won but not supplied, and this will have to change. Security of supply cannot be ensured under these circumstances. In the medium term, the European pricing mechanism will eventually find steady state, and we'll be there to provide affordable product to European patients.

Speaker #4: And we are we are ahead of the pack in many cases. There is unfortunately a lot of disruption coming from East Asia, Korea, in the form of of tenders won but not supplied.

Speaker #4: And this will have to change. I mean, security of supply cannot be ensured under these circumstances. But in the medium term, the European pricing mechanism will eventually find steady state.

Speaker #4: And we'll be there to provide affordable products to European patients.

Speaker #5: Thank you. And my second question on GenMed. So, you mentioned you expect growth in the second half and more recovery into 2027. And to me, single digit meaning that we'll return to being single digit.

[Analyst] (Jefferies): Thank you. My second question on Gen Med. You mentioned you expect growth in H2 and more recovery into 2027. We'll return to mid-single digit. If you could provide some color on what an appearance that's, let's say, low volatility in mid-single digits over the midterm, if you can remind us of the drivers there.

Darius Saftoiu: Thank you. My second question on Gen Med. You mentioned you expect growth in H2 and more recovery into 2027. We'll return to mid-single digit. If you could provide some color on what an appearance that's, let's say, low volatility in mid-single digits over the midterm, if you can remind us of the drivers there.

Speaker #5: But if you could provide some color on what an appearance of, let's say, low volatility in the single digits over the midterm would look like. If you can remind us of the drivers there.

Speaker #4: Yeah. The drivers are mostly the the the no X. Novel oral anticoagulants these markets are growing and and were large to begin with. So we have we are in a good position to capture a lot of that that revenue.

Gábor Orbán: Yeah. The drivers are mostly the NOACs, novel oral anticoagulants. These markets are growing and were large to begin with. We are in a good position to capture a lot of that revenue. We are also recovering, like I said, from some of the flu season-related revenue shortfall from some of the production supply-related revenue shortfall. We are rolling out new developments into new geographies. There is a growth in the market. Don't forget, pricing is not like it was maybe four or five years ago. There's no headwind from pricing, on average, at least. We have every reason to be confident about mid-single-digit Gen Med growth beyond 2027.

Speaker #4: We are also recovering, like I said, from some of the flu season-related revenue shortfall, and from some of the production supply-related revenue shortfall.

Speaker #4: And we are rolling out new developments into new geographies. So there is growth in the market. And don't forget, pricing is not like it was maybe four or five years ago.

Speaker #4: There's no headwind from pricing on average, at least. So we have every reason to be confident about mid-single-digit GenMed growth beyond 2027.

Speaker #2: We are also having a few launches in multiple sclerosis. We just launched one product in CNS in Russia. An important product we are actually working on is combinations, primarily in the cardiometabolic area, which is, I guess, one of the core TAs for us.

Róbert Réthy: We're also having a few launches, multiple sclerosis. We're just launching one product in CNS in Russia. It's quite important product. We actually working on combinations primarily in the cardiometabolic area, which is, I guess, one of the core TA for us. Quite a few things segment is working on. Of course, watching all the LOEs in the relevant TAs.

Speaker #2: So, quite a few things Segment is working on. And, of course, watching all the LOEs in the relevant TAs.

Speaker #5: Yeah. Thank you. And and just on on the combinations, how how do you see the combinations and is there a scope to do more combinations in and is there more demand for combinations in in GenMed?

[Analyst] (Jefferies): Yeah. Thank you. Just on the combinations, how do you see the combinations and was there a scope to do more combinations and is there more demand for combinations in Gen Med?

Darius Saftoiu: Yeah. Thank you. Just on the combinations, how do you see the combinations and was there a scope to do more combinations and is there more demand for combinations in Gen Med?

Speaker #4: Oh, as far as the combinations are concerned, there are other companies in our peer group that have invested much more in this segment, and it's not particularly our bread and butter.

Gábor Orbán: As far as the combinations are concerned, there are other companies in our peer group that have invested much more in this segment, it's not particularly our bread and butter. That said, we still have a few left that are a bit less well-served, which still carry a lot of potential, we have it almost ready. We expect incremental growth to come out of there, it's not our central growth driver. That's clear.

Speaker #4: That said, we still have a few left that are a bit less well served, and which still carry a lot of potential. And we have it almost ready.

Speaker #4: So we expect incremental growth to come out of there, but it's not our central growth driver—that's clear.

Speaker #5: Yeah, thank you. Thank you. And my last question is: at Q1, you mentioned guidance for an efficacy impact around 5%, and then at Q2, 7 to 8%.

[Analyst] (Jefferies): Yeah. Thank you. My last question is on, at Q1, you mentioned guidance for an FX impact from 5%, then at Q1, 7% to 8%. I was wondering if you can update that on how do you view FX for the rest of the year, and if you can, quantitatively or qualitatively.

Darius Saftoiu: Yeah. Thank you. My last question is on, at Q1, you mentioned guidance for an FX impact from 5%, then at Q1, 7% to 8%. I was wondering if you can update that on how do you view FX for the rest of the year, and if you can, quantitatively or qualitatively.

Speaker #5: And I was wondering if you can update that on how you view effects for the rest of the year, and if you can, quantitatively or qualitatively.

Speaker #4: Yeah. In very simple terms, the first-year, first-half average is stronger than the spot exchange rate. So if things stay as they are, there's no additional headwind for the rest of the year.

Gábor Orbán: Yeah. In very simple terms, the H1 average is stronger than the spot exchange rate. If things stay as they are, there's no additional headwind from the rest of the year. We'll see what happens. There's no forecast that we can give you, obviously. If the exchange rate can stay where it is, H2 will not be as damaging as the H1.

Speaker #4: We'll see what happens. There's no forecast that we can give you, obviously. But if the exchange rate can stay where it is, then the second half will not be as damaging as the first half.

Speaker #2: In other words, this is what we said a quarter ago for the full year—this 7 to 8 percentage point headwind—that may hold.

Róbert Réthy: In other words, what we said a quarter ago for the full year, this 7% to 8% percentage point headwind that may hold.

Speaker #2: So, I mean, now the first half is more severe here with this 9.9% headwind. But as Gabor said, the second half also, because the base effect on the dollar side is going to be less painful.

Róbert Réthy: H1 is more severe because it's 9% headwind. As Gábor said, the H2, also because the base effect on the dollar side.

Speaker #5: Yeah, thank you. And if I may, I'll squeeze in one short one. Also, we had an indication of 11% for R&D, and I do understand there has been some evaluation of the R&D projects recently.

Gábor Orbán: Yes

Róbert Réthy: It's going to be less painful.

[Analyst] (Jefferies): Yeah. Thank you. If I may squeeze one short one. Also, you had an indication of 11% for R&D, and I do understand there has been some evaluation on the R&D projects recently. How should we think about R&D for the rest of the year? I know you mentioned maybe the quarterly can be different, but some sense of for the H2 and the full year.

Darius Saftoiu: Yeah. Thank you. If I may squeeze one short one. Also, you had an indication of 11% for R&D, and I do understand there has been some evaluation on the R&D projects recently. How should we think about R&D for the rest of the year? I know you mentioned maybe the quarterly can be different, but some sense of for the H2 and the full year.

Speaker #5: So, how should we think about R&D for the rest of the year? I know you mentioned maybe the quarterly can be different, but some sense for the second half and the full year?

Speaker #2: So I think it is going to be a bit more backloaded. So more cost will incur in the second part, for sure.

Róbert Réthy: I think it is going to be a bit more back-loaded. More costs we'll incur in the second part for sure, both in CNS and both in the Women's Healthcare. They are the primary ones. Also in biosimilars, we have some R&D costs coming up. For Women's Healthcare, it's true that it's 40% versus 60%, maybe the difference with the rest is not that significant, but it's going to be still back-loaded.

Speaker #2: Both in CNS and and and both in the means healthcare, they are the the primary ones. And also in in in biosimilars we we have some some R&D costs coming up.

Speaker #2: So, for women's healthcare, it's true that it's 40% versus 60%. Maybe the difference with the rest is not that significant, but it's going to be still backloaded.

Speaker #2: And it's not going to be higher than 11%. No, no, no. Not at all.

Speaker #5: Okay. Thank you very much.

Gábor Orbán: It's not going to be higher than 11%.

Speaker #2: Thank you. And there was one more question unanswered in the chat box regarding 202. The indication is SAD, social anxiety disorder. And the question is when we expect first data and which stage we think is best to partner.

Róbert Réthy: No, not at all.

[Analyst] (Jefferies): Okay. Thank you very much.

Darius Saftoiu: Okay. Thank you very much.

Róbert Réthy: Thank you. There was one more question unanswered in the chat box regarding RGH-202. The indication is SAD, social anxiety disorder. The question is when we expect first data, and which stage we think it is best to partner.

Speaker #4: It's best to partner as early as possible because not only are the risks and the financing shared with the partner, but also the knowledge of the TA is usually very helpful in early partnering.

Gábor Orbán: It is best to partner as early as possible because we not only have the risks shared and the financing shared with the partner, but also the knowledge of the TA is usually very helpful in early partnering. It is not the case for this compound. There was no interest in the early phase. There is a lot of interest as such, but the partner candidates prefer to wait until they see Phase II data. This is not uncommon. We could not partner it earlier, and we hope to partner it as soon as we have first indications of efficacy. First proof of concept data from Phase II. When is this likely to happen? 2 years from now.

Speaker #4: It's not the case for this compound. There was no interest in the early phase. There's a lot of interest because, I mean, there's a lot of interest as such.

Speaker #4: But the partners—partner candidates—prefer to wait until they see Phase 2 data. This is not uncommon. We could not partner it earlier, and we hope to partner it as soon as we have first indications of efficacy.

Speaker #4: First proof-of-concept data from phase two—when is this likely to happen? Two years from now.

Speaker #2: Yes, and there is finally a question on M&A. If you consider M&A in the next couple of quarters—yes. Which type of businesses? We primarily demand health.

Róbert Réthy: 2 years. Yes, there is finally a question on M&A. If we consider M&A in the next couple of quarters. Yes. Which type of businesses? We primarily women health.

Speaker #4: Yes. Women's health.

Speaker #2: And I think with that, and also for the sake of time, we will conclude the call here. Thanks very much for your interest in Richter.

Gábor Orbán: Yes, women's health.

Róbert Réthy: I think with that, also for the sake of time, we conclude the call here. Thanks very much for your interest in Richter. We see you three months' time, the latest. Wish you a great rest of the summer. Thank you very much. Bye-bye.

Speaker #2: We see you in three months' time at the latest. Wish you a great rest of the summer. Thank you very much. Bye-bye.

Gábor Orbán: Thank you.

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Q2 2026 Richter Gedeon Vegyeszeti Gyar Nyrt Earnings Call

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