Richter will ask for more than HUF 3bn, the current security deposit, from Merck, Richter’s CEO Mr Bogsch announced to the press yesterday. The news relates to the recent decision of the Hungarian Metropolitan court, which rejected Merck’s patent infringement claim on Richter’s Sedron (generic equivalent of Merck’s Fosamax, an anti-osteoporosis drug containing aldendronate). As the production and distribution of Sedron was suspended for half a year, Richter’s claim for compensation is legitimate. We have not folded this one-off compensation into our forecasts for 2006 thus it represents a potential upside to our target price. However, we would be only slightly positive on the news as the court decision was already known, and only the amount of compensation could have share price impact.