Pharmstandard OJSC reports its 9M/Q3 2014 sales results

30.10.2014

Moscow, October 30, 2014 – Pharmstandard OJSC (LSE: PHST IL, RTS: PHST RU) (further “Pharmstandard” or the “Company”) announces its unaudited 9M/Q3 2014 sales results. 

On April 1, 2014 OTCPharm PJSC (further “OTCPharm”), OTC business that was spun-off from Pharmstandard OJSC, started independent operating activities.

As of Q2 2014 OTCPharm sales are no longer included into Pharmstandard sales and will be recognized in OTCPharm statements.

Sales highlights.

  • Organic pharmaceutical sales excl. OTCPharm portfolio (27 brands)in FY2013 and Q1 2014 demonstrated 16% growth in 9m2014
  • 9M 2014 Pharmstandard sales reached RUR24 760m demonstrating RUR3 806m or -13% y/y decline, compared to RUR28 567m in 9M 2013. This decline is attributed primarily to OTCPharm spin-off and TPP segment decline in sales
  • Pharmaceutical products and medical equipment accounted for 74% and 2% of the Company’s total sales in 9M 2014, respectively. 9% of total sales is attributed to Services to third parties including agency fees and contract manufacturing (further “CMO”). 15% of total sales is attributed to sale of finished goods and raw materials to OTCPharm as a result of the spin-off.
  • In Q3 2014 Pharmstandard sales reached RUR7 537m falling 39% y/y (RUR1 750m), compared to RUR12 400m in Q3 2013. The main reason for decline (- RUR4.5bn/-85%) is attributed to the spin-off effect.

Pharmaceutical products. Sales results.

Pharmaceutical sales  in 9M 2014 reached RUR18 286m (-RUR9 602m/-35%), with organic sales accounting for 49%, TPP for 46% and API for 5% in the pharmaceutical sales mix. This change is mainly attributed OTC products (-63%) with majority of them being moved to OTCPharm and TPP products (-21%)

Organic pharmaceutical sales in 9M 2014 amounted to RUR8 984m (-45%) vs RUR16 462m in 9M 2013. The structure of sales changed as a result of the spin-off with 49% accounted for by OTC products and 51% by Rx products.

Organic prescription product (Rx) sales in 9M 2014 reached RUR4 566m (+RUR23m/+0.5%). Key growth drivers remain unchanged: Phosphoglive®, Combilipen® and Octolipen® (+RUR417 in total). A significant effect (-RUR236m) was caused by relocation of Rx forms of Pentalgin, Codelac and Termicon to OTCPharm portfolio and revenue as of Q2 2014.

Organic over-the-counter (ОТС) product sales in 9M 2014 reached RUR4 419m (-63%). The majority of OTC products was moved to OTCPharm portfolio with the revenue being recognized in OTCPharm independent statements.

Spin-off effect. In April 2014, to launch operating activities of OTCPharm, all finished goods of OTC products and raw materials for manufacturing of these products were sold to OTCPharm by the Group at the amount of RUR3 596m. Additional sum of RUR187m stands for these items in Q3 2014. The total amount of revenue for this segment stands at RUR3 783m.

Services to third parties. The Company provides services to third parties which were reclassified to regular revenue in 2014. These services include contract manufacturing and agency contracts with OTCPharm. This part of company revenue amounted to RUR2 180m as of 9M2014.

Contact Manufacturing. The Company’s subsidiaries provide services for the manufacturing of certain products from the raw materials owned by customers. Since 2014, the management of the Group is classified contractual manufacturing as a regular revenue. Thereof, Pharmstandard reclassified income from contractual manufacturing accounted previously on net basis from other income to revenue.

Agency Fees. The Company holds agency contracts with related parties for distribution and sales of certain products. Since 2014, the management of the Group classified agency fee income as a regular revenue. Thereof, Pharmstandard reclassified agency fee income from other income to revenue and for the purpose of comparative analysis, the prior year figures were restated accordingly.

TPP sales in 9M 2014 added up to RUR8 487m (-21%) (vs RUR10 678m in 9M 2013). 

Government procurement. 7 Nosologies Federal Program.

Government procurement segment reached RUR4 494m in 9M 2014 (-17%/-RUR906) with Mabthera®, Coagil®, Infibeta® and Velcade® declining for the total sum of RUR1.3bn y/y due to relocation of auctions.

 

Brand 

Category 

9M 2014

9M 2013

Change

Sales, 
RURm 

% of TPP 
sales
 

Sales, 
RURm 

% of TPP 
sales
 

RURm 

% 

Presista®

Rx

1 474

17%

1 522

14%

-49

-3%

Mabthera®

Rx

710

8%

1 260

12%

-550

-44%

Revlimid

Rx

626

7%

534

5%

92

17%

Intellence®

Rx

578

7%

516

5%

62

12%

Coagil® 

Rx

301

4%

658

6%

-358

-54%

Velcade® 

Rx

280

3%

454

4%

-174

-38%

Other TPPs 

Rx

525

6%

456

4%

68

15%

Total for the group 

Rx

4 494

53%

5 400

51%

-906

17%

Total TPPs 

Rx

8 487

100%

10 678

100%

-2 191

-21%

Commercial segment

Commercial TPP sales in 9M 2014 amounted to RUR3 993m (-24%) primarily driven by Reduksin® sales

(-66%) causing a significant effect on TPP segment overall.

Brand 

Category

9M 2014

9M 2013

Change

Sales, 
RURm 

% of TPP 
sales
 

Sales, 
RURm 

% of TPP 
sales
 

RURm 

%

IRS-19®, Imudon®

Rx

1 170

8%

841

14%

329

39%

Mildronate®

Rx

681

6%

653

8%

28

4%

Reduxin®

OTC, Rx

507

14%

1 477

6%

-971

-66%

Taufon

OTC

323

2%

160

4%

162

101%

Other TPPs

OTC, Rx

1 313

20%

2 147

15%

-833

-39%

Total for the group

OTC, Rx

3 993

54%

5 278

47%

-1 285

-24%

Total TPPs

Rx

8 487

100%

10 678

100%

-2 191

-21%

Other TPPs increased their share in the commercial group and reached RUB1 313 (-39%/-RUR833m). This change was driven by completion of sales under single procurement contracts concluded in year 2011.

9M 2014 medical equipment sales reached RUR512m (-25%/-RUR167).

 

9M/Q3 2014 Sales structure.

9M 2014 SALES

9M 2014 (RURm)

% of total sales

9M 2013 (RURm)

% of total sales

y/y growth (RURm)

y/y growth (%)

Pharmstandard Group total sales

24 760,4

100,0%

29 302,9

100,0%

-4 542,5

-16%

Pharmaceutical products

18 286,0

73,9%

27 888,2

95,2%

-9 602,2

-34,4%

Organic pharmaceutical sales

8 984,4

36,3%

16 462,7

56,2%

-7 478,4

-45,4%

Rx

4 418,5

17,8%

11 920,1

40,7%

-7 501,5

-62,9%

Branded

4 565,8

18,4%

4 542,6

15,5%

23,2

0,5%

Non-branded

3 921,6

15,8%

3 921,6

13,4%

0,0

0,0%

OTC

644,2

2,6%

621,1

2,1%

23,2

3,7%

TPP

8 487,3

34,3%

10 678,4

36,4%

-2 191,1

-20,5%

Government procurement

4 494,0

18%

5 400,4

19%

-906

18%

Commercial

3 993,3

16%

5 278,1

18%

-1 285

-24%

Other sales – substances

814,3

3,3%

747,0

2,5%

67,3

9,0%

Medical equipment

511,6

2,1%

678,7

2,3%

-167,0

-24,6%

Services to third parties

(incl. CMO and agency fees)

2 180,1

8,8%

736,0

2,6%

1 444,0

196,2%

Sale of finished goods and

raw materials to OTCPharm

(spin-off effect)

3 782,7

15,3%

-

0,0%

3 782,7

-

 

Q3 2014 SALES

Q3 2014 (RURm)

% of total sales

Q3 2013 (RURm)

% of total sales

y/y growth (RURm)

y/y growth (%)

Pharmstandard Group total sales

536,5

100%

12 400

100%

-4 863,6

23%

Pharmaceutical products

5 943,6

78,9%

11 917,6

96,1%

-5 974,0

-50,1%

Organic pharmaceutical sales

2 310,3

30,7%

6 905,1

55,7%

-4 594,8

-66,5%

Rx

1 528,7

20,3%

1 620,3

13,1%

-91,5

-5,6%

Branded

1 240,0

16,5%

1 397,9

11,3%

-157,9

-11,3%

Non-branded

288,7

3,8%

222,3

1,8%

66,4

29,9%

OTC

781,6

10,4%

5 284,8

42,6%

-4 503,3

-85,2%

TPP

3 285,2

43,6%

4 776,8

38,5%

-1 491,6

-31,2%

Government procurement

2 095,2

23%

3 365,8

45%

-1 271

108%

Commercial

1 190,0

13%

1 411,0

19%

-1 061

-51%

Other sales – substances

348,1

4,6%

235,7

1,9%

112,4

47,7%

Medical equipment

227,7

3,0%

214,5

1,7%

13,2

6,2%

Services to third parties

(incl. CMO and agency fees)

1 178,2

15,6%

267,9

2,2%

910,4

339,8%

Sale of finished goods and

raw materials to OTCPharm

(spin-off effect)

186,9

2,5%

-

0,0%

186,9

-

Q3/9M 2014 Sales Results Conference Call

Notice of 9M/Q3 2014 Sales Results – announcement date

 

Moscow, October 30, 2014 – OJSC Pharmstandard (LSE: PHST LI, RTS: PHST RU) will be announcing its 9M/Q3 2014  sales results on Thursday, October 30, 2014 at 17:00 PM Moscow time. 

Pharmstandard takes pleasure to invite you to participate in 9M/Q3 2014 sales results Conference Call followed by a Q&A session.

Conference Call will take place on 

Thursday, October 30, 2014

09:00 New York

14:00 London

17:00 Moscow 

UK Call-in Number: +44 (0)20 3427 1915

US Call-in Number: +1 646 254 3366

Russia Call-in Number: +7 495 705 9450

Confirmation code: 7662718

  

Pharmstandard will be represented by:

Igor Krylov, CEO

Irina Bakhturina, Head of IR 

Conference call presentation

will be available on October 30, 2014

on our web-site:

http://pharmstd.com/

 

The conference call replay will be available through November 5th, 2014

International Replay Number: +44 (0)20 3427 0598

US Replay Number: +1 347 366 9565

Russia Replay Number: +7 (495) 705 9453

Replay Access Code: 7662718

Contacts:

Irina Bakhturina

Head of Investor Relations

Pharmstandard OJSC

Tel: +7 495 970 0030 ext 2824

E-mail: ir@pharmstd.ru 

 

About Pharmstandard:

Pharmstandard OJSC (www.pharmstd.com) – Russia’s leading pharmaceutical Company that develops and manufactures high-quality modern pharmaceutical products which meet the requirements of the healthcare system and the expectations of patients.

The Company’s production assets consist of 8 pharmaceutical plants located in Kursk, Ufa, Tomsk, Vladimir and in Ukraine’s Kharkov and 1 medical equipment plant in Tyumen.

Pharmstandard shares and GDRs are traded on the RTS-MICEX and LSE, respectively.

www.pharmstd.ru


Back Print out

Media Contacts



Marina Bortnikova


Press & Public Relations Unit

+7 (495) 970 0032
pr@pharmstd.ru
ПРЕДУПРЕЖДЕНИЕ

Информация на сайте предназначена исключительно для медицинских работников.

Подтвердите, пожалуйста, являетесь ли Вы медицинским работником.

Если Вы не являетесь медицинским работником, пожалуйста, покиньте данный раздел сайта.


СОГЛАШЕНИЕ О ПОЛУЧЕНИИ ИНФОРМАЦИИ О РЕЦЕПТУРНЫХ ПРЕПАРАТАХ

1.На сайте представлена информация о рецептурных препаратах, их свойствах, способах применения и возможных противопоказаниях исключительно специалистам здравоохранения (лицам, имеющим высшее или среднее специальное медицинское образование).

2. Если Вы являетесь специалистом здравоохранения и хотите получить информацию с данного раздела сайта, Вам необходимо подтвердить ваш статус специалиста здравоохранения.

3. В случае если Вы не являетесь специалистом здравоохранения, но в нарушение настоящих условий подписываете данное соглашение, сайт Компании не несет ответственности за возможные отрицательные последствия, возникшие в результате самостоятельного использования Вами информации с сайта, без предварительной консультации со специалистом. Вы делаете это самостоятельно и осознанно, понимая, что применение рецептурных препаратов возможно только после предварительной консультации со специалистом здравоохранения.

4. Информация о рецептурных препаратах, представленная на данном разделе сайте, предназначена исключительно для ознакомления с препаратами и не является руководством для самостоятельной диагностики или лечения, и не служит в качестве медицинских советов или рекомендаций. Сайт не несет ответственности за возможный ущерб, нанесенный Вашему здоровью в случае самовольного лечения, проводимого на основании применения рецептурных препаратов (без предварительной консультации со специалистом). Настоящим я подтверждаю, что являюсь специалистом здравоохранения и подтверждаю своё согласие с тем, что применение рецептурных препаратов возможно только после предварительной консультации со специалистом.