Slovenian drugmaker Krka posted IFRS consolidated 1H07 net result of EUR 68.0m (up 31.2% y/y), 1.9% below our expectation of EUR 69.3m. There was no quarterly consensus available. The first half consolidated net profit stands in-line with the full-year forecasts, as it stands at 47.1% of our full-year estimates of EUR 144.2m and 51.3% that of Bloomberg full-year consensus of EUR 139.5m for 2007. Krka also reiterated its full-year guidance of EUR 750m (56 EUR, -2,75%) sales and EUR 130m net profit for 2007, which is slightly below our expectation of EUR 780.3m and EUR 144.2m respectively. We expect neutral market reaction to the results and recommend buying on share price weakness.