Egis reported 4Q05/06 consolidated net profit of HUF 2.48bn (up 11.0% y/y and down 10.8% q/q), which came 10.9% below portfolio.hu consensus (based on 3 brokerage houses estimates). The figure also came 10.8% below our forecast; however, it was due to a one-off increase in tax payment in the last fiscal quarter of the company, which balances out slightly lower tax payments in the previous three quarters. We expect only minor negative reaction to the figure as operating performance came broadly in-line and recent news on the dilution of government’s restrictive measures on the Hungarian drug companies might keep the positive sentiment on the stock.