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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