February YTD Health Fund spending reached in Hungary reached HUF 53bn - Napi Gazdasag reported.
Our view: We see the news positively, as we see the annualized spending (HUF 318bn), would remain under the level (HUF 332bn) above which drugmakers would have to contribute to the Hungarian drug subsidy budget. If we were to exclude this clawback from our Egis and Richter estimates our EPS forecast for 2007 could increase by HUF 31 for Richter to HUF 2,264 and by HUF 43 to HUF 1,777 for Egis. We estimated that both Egis and Richter would have to pay HUF1.4bn clawback to co-finance the overspending of the Hungarian drug subsidy budget.