* Total revenues to fall by 6 pct in euro terms -CEO
* Russia sales seen 5 pct lower in roubles
* Ukraine revenues to plunge by 35 pct in dollars
* Cuts operating margin guidance to 11 pct from pvs 12-13
* Likely FDA will require no more tests for Cariprazine
(Adds detail, comments, market reaction)
By Gergely Szakacs
BUDAPEST, May 7 Hungarian drugmaker Richter
cut its 2014 revenue and operating profit outlook on
Wednesday due to the dispute between Ukraine and Russia, two of
its biggest markets.
Earlier Richter reported a 51 percent fall in first-quarter
net profit, slightly better than market expectations, as revenue
from Russia and Ukraine plunged while costs inched higher.
The two countries, which are locked in a territorial
dispute, accounted for more than a third of total sales worth
1.18 billion euros ($1.64 billion) last year, but in the first
quarter produced only 27 percent of turnover combined, Richter
"Our revenues expressed in euros will fall by 6 percent this
year," Chief Executive Erik Bogsch told a news conference. "This
is due to changes in the outlook for Russia and Ukraine."
Richter, which makes gynaecological, cardiovascular and
central nervous system drugs, cut its revenue estimate for
Russia to a 5 percent fall in rouble terms from up to 5 percent
growth expected earlier.
The decline will be even bigger when expressed in euros as a
result of a 16 percent plunge in the value of the rouble versus
the euro since the first quarter of last year, Bogsch said.
"Our (Russian) revenues will decline by over 20 percent,
which is quite severe," he said. Richter had sales to Russia
worth 337 million euros last year.
In Ukraine, Richter forecast sales plunging by as much as 35
percent from last year's $95 million.
"Patients have less money, the business of pharmacies has
become more uncertain, everybody is reducing stockpiles and
everyone is trying to brace for survival," he said.
Bogsch said the company's operating profit margin would fall
to 11 percent of revenues this year from 12-13 percent forecast
previously. That compares to 13.8 percent last year and 14.9
percent in 2012.
On the positive side, Bogsch said it was "very likely" that
the U.S. Food and Drug Administration (FDA) would not require
further clinical trials for anti-psychotic drug Cariprazine for
the treatment of schizophrenia and bipolar mania.
In November the FDA declined to approve the drug, discovered
by Richter and licensed to Forest Laboratories Inc in
the United States and Canada, citing the need for more
Bogsch said Forest would submit additional information to
the FDA in the fourth quarter, which means that the regulator
could approve the new drug by the middle of next year.
At 0841 GMT, Richter shares traded 0.4 percent higher
compared with a flat blue-chip index.
The company's shares have lost 5.4 percent of their value
over the past three months according to Thomson Reuters data,
underperforming the wider Budapest index, which fell 2.5
($1 = 0.7177 Euros)
(Reporting by Gergely Szakacs; Editing by Erica Billingham)