The history of Gedeon Richter
1991-2003
The 1990s brought along major changes in the Company's markets as well as in the Company itself. The collapse of COMECON, where sales were highly predictable and exports were profitable for Richter, precipitated in terms of the loss of the Company's traditional markets. Economic and political changes in this region as well as the liberalization of imports to Hungary resulted in the influx of imported pharmaceutical products that were supported via aggressive marketing methods by their manufacturers. The Company was burdened by debts and interest payment liabilities relating to a huge quantity of frozen stocks that had been manufactured for exports to COMECON countries and which were temporarily stuck in the warehouses. The high inflation in Hungary precipitated in increasing production costs. As a result of the above issues the Company's situation became quite critical. The Company was operating at a loss in 1992.
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In response to the new market trends, the Richter decided to focus its efforts on the manufacture of human medicines again. The Company phased out the production of herbicides, veterinary medicines and cosmetics and launched a project to update and upgrade its portfolio of human medicines. |
The new management drew up a new strategy in 1992, the first results of which were quite tangible as early as 1993. The principal features of the new strategy were as follows: the introduction of a much stricter financial control and audit scheme, the elimination of products that were manufactured in small quantities, or at low profit margins, the introduction of flexible license policies, the modernization of the company's product portfolio, the elimination of unprofitable business lines, or activities other than those comprising Richter's core business, enhancing marketing efforts, the development of a marketing network to regain recently lost Eastern European markets, the concentration of research and development efforts, a gradual reduction of total workforce while hiring new staff in principal corporate growth areas, a drastic decrease in outstanding short term and long term debts. Furthermore, the adoption of a market-oriented approach to replace the outdated production-oriented policies of the company was considered to be a principal strategic objective. The new strategy turned out to be a great success: while the company retained its status in the domestic market and regained its markets in CIS countries (former Soviet republics) as well as in Central and Eastern Europe, Richter increased its exports to western countries by a significant margin.
Until 1914
Between 1914 and 1945
Between 1945 and 1991
From 2004 onwards