Gedeon Richter Opens $110 Million Biotechnology Plant in Hungary

Gedeon Richter Nyrt. (RICHT), Hungary’s largest drugmaker, opened a biotechnology plant today, built at a cost of 25 billion forint ($110 million).

The new factory will make protein samples for clinical tests using mammal cells and start producing drugs for treating cancer and inflammation in 2014, Erik Bogsch, Richter’s chief executive officer, said at the opening ceremony. Richter received 1.4 billion forint in government subsidies for building the plant.

Richter, a generic-drug specialist, wants to break into the global market for biopharmaceuticals -- medicines created by manipulating cells and genes. The company has spent 214 billion forint in the past 10 years and is the only Hungarian business to own a Europe-wide sales network, Bogsch said.

The share of biotechnological products in the global pharmaceuticals market is set to increase, said the company. Every third pharmaceutical product licensed in the European Union was biotechnological, Richter said.

Richter shares advanced 0.8 percent to 37,700 forint by 10:50 a.m. in Budapest, boosting this year’s gain to 9.8 percent. The benchmark BUX stock index as gained 2.5 percent this year.

To contact the reporter on this story: Edith Balazs in Budapest at ebalazs1@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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