By Veronika Gulyas
BUDAPEST--Hungary-based drug maker Richter Gedeon Nyrt.
(RICHTER.BU) expects annual revenues of up to 50 million euros over
the next three to four years from the sales of Bayer products,
Chief Executive Erik Bogsch told Dow Jones Newswires Tuesday.
Richter signed a license and distribution agreement with Bayer
HealthCare, part of Germany's Bayer AG (BAYN.XE) on Tuesday.
The Hungarian company, which has been hit hard by the Ukrainian
conflict due to its high exposure to Russia, is seeking to widen
the product range across its sales network in the European Union
and South America, Mr. Bogsch said.
Under the license and distribution agreement, Richter may start
sales of the German partner's contraceptive product in the third or
fourth quarter in Europe, while licensing could take about two to
three years in Latin America.
Richter paid a "few million euros" to Bayer upon signing the
deal and will pay a similar amount as a first milestone payment to
Bayer in the third quarter, Mr. Bogsch said.
Richter will also be conducting and funding a post-authorization
safety study, or PASS, in line with European Medicines Agency
regulations on the Bayer products. PASS will cost about EUR40
million, that Richter expects would be started within about two to
three years, in line with European Medicines Agency
regulations.
Richter's revenues totaled EUR284.2 million in the
July-September period last year, according to latest data and
annual revenues totaled EUR1.2 billion in 2013.
Write to Veronika Gulyas at veronika.gulyas@wsj.com; Twitter:
@VeronikaGulyas1
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