Gábor Orbán is the Chief Executive Officer of Gedeon Richter Plc, Hungary’s leading pharmaceutical company. He was appointed CEO in November 2017, following a diverse career in central banking, asset management, and public service. On 13 May 2025 Orbán participated in the Free Market Road Show in Budapest, co-organized by the Danube Institute and the American–Hungarian Chamber of Commerce of New York. On the sidelines of the event, he kindly sat down with Hungarian Conservative for a brief interview to discuss how the company rose to the forefront of the global pharmaceutical sector—including its breakthrough in the US—and what strategic goals lie ahead in the upcoming decade.
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If one mentions Gedeon Richter, cariprazine inevitably follows. The company entered the US market with a product containing the active ingredient cariprazine, which became a major success story not only for the company but also for Hungary. Could you tell us a little about this product?
Cariprazine was first synthesized by chemists at Richter in 2002, and in 2004 a partnership was formed with an American company, which led to joint development and eventually the product’s launch on the market in 2015. This was a remarkable achievement, as no pharmaceutical company from Eastern Europe had managed to introduce an original drug in the United States before. To this day, it remains the only one. In fact, it is also the only one to have reached blockbuster status—generating annual revenues in the billion-dollar range. The medication is used to treat schizophrenia and bipolar disorder, and while it is particularly successful on the American market, it is also available elsewhere. However, in terms of volume and value, its success in the United States has been especially significant. I can confidently say that cariprazine is one of Hungary’s most important export products, especially in the USA–Hungary relation.
As a result of one of the Biden administration’s final decisions, the medicine with the active ingredient cariprazine has been included in the Medicare programme, requiring mandatory price reductions from 2027. What developments can we expect now that the Trump administration has taken office?
As I see it, the mechanisms set in motion by the previous administration’s decisions are currently under way; the machinery is in motion. Measures limiting price increases have taken effect, a price cap or subsidy limit has been introduced within the Medicare system, and there is also a mandatory price renegotiation process that began on 1 January 2025. What we have seen in recent weeks is an additional attempt by the US government to bring American and European price levels closer to each other. This was pursued via a presidential executive order, which has not produced immediate results, but there is clearly an ongoing intention to reduce US healthcare expenditures in this regard as well. It is important to note that in terms of American healthcare spending, medicine costs are far from the largest component—most of the costs arise from patient care itself, including hospital and medical services, and the intermediary system’s expenses are also staggering. I assume that further initiatives will emerge from that direction too.
It is difficult to name another Hungarian company with a presence in virtually every corner of the world, like Richter. What does it take for a company from a country the size of Hungary to reach the global elite?
There is no other Hungary-based company with both products and personnel present on all five continents—only Richter. I believe that reaching this level requires intentional, long-term thinking and development. Those who expect a major breakthrough and spectacular results within a few years—through bursts of activity or short-term business campaigns—are unlikely to get far, even geographically. In Richter’s case, the international expansion of the past two decades was preceded by the company’s position within the Council for Mutual Economic Assistance (COMECON—a Soviet-led economic organization). While I could say many critical things about the pre-1989 era, one significant advantage it offered was the division of labour within COMECON: some countries produced tanks, others cars or wheat, and Hungary—alongside parts of the former Yugoslavia, particularly Croatia and Slovenia—was responsible for supplying pharmaceuticals. As a result, following the regime change, the sector started from a position where these international ties could at least be revived or reactivated. Richter succeeded in doing this remarkably well. The company did not withdraw from the Russian market even during the difficult circumstances of 1998, and by the early 2000s, it had evolved into a regional multinational. That foundation enabled the broader international expansion that now encompasses Western Europe, China, Australia, Latin America, and—through strategic partnerships—a range of additional markets, including the United States and Japan.
Pharmaceutical cooperation also plays a prominent role in Hungary’s Eastern Opening policy, with ongoing partnerships in countries such as Russia, Kazakhstan, and Uzbekistan—projects in which Gedeon Richter is a regular participant. How different is it to enter these markets compared to, say, the United States?
These markets are, of course, markedly different. Local competition is considerably less intense than in the United States, which presents a clear advantage. At the same time, purchasing power, the role of social insurance systems, general health awareness, and the scope of available healthcare services are all proportionally lower—resulting in smaller overall market sizes. Compared to the pharmaceutical markets of Western countries, these are significantly more limited. That said, one gains something and gives something in return. I would not describe them as better or worse, easier or harder—only fundamentally different. In the US, both the potential and the competition are high; in these regions, potential is more modest, but so is the level of competition.
Despite all the success, there is always room for growth. What are the company’s medium- and long-term plans?
In the pharmaceutical industry, competition and the product life cycle are intrinsic to the nature of the business. We are now encountering these dynamics with greater intensity than ever before, as the success of cariprazine in the United States presents both a significant opportunity and a considerable challenge. It is an opportunity in that it provides us with time and resources throughout the current decade, but it also imposes a responsibility to lay the groundwork for a more stable and balanced business, financial, and profitability structure for Richter by the 2030s. This is the strategic focus of our current efforts.
Our expansion in the field of gynaecology—driven by global ambitions—constitutes a central pillar of this strategy. In this domain, we are present with both innovative and off-patent products, and we can already assert with confidence that by the end of the decade, Richter is well positioned to become the leading gynaecological company in Europe. In the area of contraception specifically, we are already among the largest players and hold a market-leading position.
‘Richter is well positioned to become the leading gynaecological company in Europe’
In parallel, we are investing in original research in psychiatry through strategic partnerships; in biotechnology, which encompasses the development and manufacture of large-molecule pharmaceuticals; and in the provision of essential medicines—primarily generic drugs—across the Central and Eastern European region. These four business pillars are currently under development and are expected to serve as the foundation of Richter’s operations in the 2030s.
Our new 2025–2035 strategy groups these areas into two strategic pillars. Richter’s ambition is to become a global thought-leader and innovator in CNS and gynaecology (‘Innovative’ pillar), while at the same we are working hard to make biotechnological and generic medicines and treatments accessible to an ever-wider range of patients globally (‘Affordable’ pillar).
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