OJSC Pharmstandard reports its 1H2012 sales results

26.07.2012

Moscow, 26 July – OJSC Pharmstandard (LSE: PHST IL, MICEX-RTS: PHST RU) reports its non-audited results for 1H2012.

1H2012 Key Highlights:

· In 2Q2012, sales of OJSC Pharmstandard grew by 14.7% (RUR 1,027 million) and amounted to RUR 8,010.3 million vs RUR 6,983.4 million a year earlier.

· In 1H2012, OJSC Pharmstandard’s sales amounted to RUR 16,166.3 million vs RUR 18,653.5 million a year earlier.

· In 2Q2012, organic sales of OJSC Pharmstandard increased by 24.5% (RUR 792.9 million) and amounted to RUR 4,024.4 million vs RUR 3,231.5 million a year earlier. 1

· In 1H2012, organic sales of OJSC Pharmstandard amounted to RUR 8,402.6 million vs RUR 8,899.5 million a year earlier.2

Key Developments at the Company in 1H2012:

 

· On June 26, 2012, OJSC Pharmstandard announced the purchase of a controlling stake in Bigpearl Trading Limited (Cyprus). This acquisition enables OJSC Pharmstandard to determine general terms of business activities of OJSC Biomed named after I.I. Mechnikov, Pharmapark LLC and other commercial entities comprising a group of entities which includes Bigpearl Trading Limited.

 

· On June 20, 2012, the Company announced the purchase of ordinary shares 765,000 (representing about 2.02% of the equity capital of OJSC Pharmstandard) of OJSC Pharmstandard, at market price, by its subsidiary OJSC Pharmstandard-Leksredstva. This will not affect OJSC Pharmstandard’s planned investment and objectives with respect to the development of its production facilities and the planned acquisitions with the view to expanding the company’s products portfolio.

· Revenue from codeine-free products in 2Q2012 totalled RUR 472.9 million, an increase of 250% or RUR 337.8 million vs sales of codeine-free products in the same period of the previous year (RUR 135.1 million).

Revenue from sales of codeine-free products in 1H2012 amounted to RUR 759.9 million representing an increase of 203.6% or RUR 509.6 million vs sales of codeine-free products in the same period of the previous year (RUR 250.3 million).

Pursuant to the Decree No. 599 of the Government of the Russian Federation dated July 20, 2011 stipulating that from June 1, 2012 products containing codeine, can be purchased only with doctor’s prescription, sales of codeine-containing products are reflected in the Rx products sales section. Naturally, retrospective data regarding sales of such products prior to June 1, 2012, is included in the OTC product figures. The following products of OJSC Pharmstandard fell under the scope of the new rule: Pentalgin®-H, Pentalgin®-ICN, Pentalgin® Plus, Codelac®, Terpincod®.

· On May 25, 2012, the Annual General Shareholders’ Meeting voted to approve the Annual Report of OJSC Pharmstandard for 2011; to approve the annual accounting statements for 2011; not to pay ordinary share dividends for 2011. The Meeting elected members of the Board of Directors of OJSC Pharmstandard, approved the Internal Auditors Commission and the auditing company for 2012, as well as the new draft of the Charter of OJSC Pharmstandard and the Statute of the Board of Directors.

· During the first five months of 2012, Russian pharmaceutical market grew by 11.6% or 33,4 billion and amounted to RUR 321,7 billion. 3

Revenue from sales of pharmaceutical products in 2Q2012 grew by 14.5% or RUR 985.8 million and amounted to RUR 7,804.6 million vs RUR 6,818.8 million for the same period of the previous year. In the pharmaceutical product sales structure, sales of Pharmstandard’s organic products amounted to 47.3%, sales of third party products – to 51.1% and other sales (API) – to 1.6%.

Revenue from sales of pharmaceutical products in 1H2012 fell by 14.1% or RUR 2,596.4 million and amounted to RUR 15,786 million vs RUR 18,382.4 million for the same period of the previous year. In the pharmaceutical product sales structure, organic sales of Pharmstandard’s products amounted to 49.2%, sales of third party products – to 49.2% and other sales (API) – to 1.6%. The reduction was a natural consequence of the decrease in sales in 1Q2012 by 31.0%, which was caused by the absence of flu pandemic in Russia, according to Rospotrebnadzor (the Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing), by the decrease in sales of products considerably affected by seasonal fluctuations, and by the fact that most of the Company's TPP (Third Party Products) supplies, needed to meet the demand of Russian citizens in expensive medications in 2012, took place in 4Q2011.

Pharmstandard’s organic sales of pharmaceutical products in 2Q2012 grew by 24.5% or RUR 751.7 million and amounted to RUR 3,818.6 million. In the organic pharmaceutical products sales structure, sales of OTC products amounted to 66.6%, sales of Rx products to 30.2% and other sales to 3.2%.4

In 1H2012, sales of organic pharmaceutical products fell by 7% or RUR 606.0 million and amounted to RUR 8,022.4 million. In the organic pharmaceutical products sales structure, sales of OTC products amounted to 68.7%, Rx products to 28.2% and other sales to 3.1%.5

Organic sales of OTC products in 2Q2012 increased by 17.1% or RUR 371.9 million and amounted to RUR 2,544.1 million vs RUR 2,172.2 million in the same period of the previous year. The sales growth leaders in value terms were Arbidol® (804.8% or RUR 196.4 million), Complivit® (87.6% or RUR 116.8 million), Flucostat® (85% or RUR 82.8 million), Ingalipt® (169.4% or RUR 50.7 million), Acipol® (94.7% or RUR 41.1 million) and Afobazol® (20.3% or RUR 24.3 million).

Organic sales of OTC products decreased, in 1H2012, by 17.4% or RUR 1,157.3 million and amounted to RUR 5,511.1 million vs RUR 6,668.2 million in the same period of the previous year. The main reason for the decrease was sales of Arbidol® in 1Q2012 (RUR -1,094 million).

Organic sales of Rx products in 2Q2012 grew by 39.5% or RUR 326.2 million and totalled RUR 1,151.4 million vs the same period of the previous year (RUR 825.2 million).6 The sales growth leaders in value terms were Phosphoglive® (65.3% or RUR 95.0 million), Combilipen® (48.4% or RUR 39.1 million), Picamilon® (74.3% or RUR 22.7 million), Octolipen® (68.1% or RUR 20.6 million), Biosulin® (18.5% or RUR 16.7 million).

Organic sales of Rx products in 1H2012 increased by 24.7% or RUR 447.6 million and amounted to RUR 2,259.6 million vs the same period of the previous year (RUR 1,812.0 million).7

 

 

 

 

Sales of s Pentalgin®, Codelac®, Terpincod® in 2Q2012

Revenue from codeine-free products in 2Q2012 totalled RUR 472.9 million, an increase of 249.8% or RUR 337.7 million vs sales of codeine-free products in the same period of the previous year (RUR 135.2 million). 

Revenue from codeine-containing products in 2Q2012 amounted to RUR 452.2 million, a decrease of 54.1% or RUR 532.8 million vs sales of codeine-containing products in the same period of the previous year (RUR 985.1 million).

In 2Q2012, total sales of Pentalgin®, Codelac® and Terpincod®, included OTC and Rx categories, amounted to RUR 925.1 million, a decrease of 17.4% or RUR 195.1 million vs the same period of the previous year (RUR 1,120.2 million).8

 

Sales of s Pentalgin®, Codelac®, Terpincod® in 1H2012

Revenue from sales of codeine-free products in 1H2012 amounted to RUR 760.0 million representing an increase of 203.6% or RUR 509.6 million vs sales of codeine-free products in the same period of the previous year (RUR 250.3 million).

 

Revenue from sales of codeine-containing products in 1H2012 decreased by 48.6% or RUR 896.1 million vs sales of codeine-containing products in the same period of the previous year (RUR 1,843 million).

In 1H2012, total sales of Pentalgin®, Codelac® and Terpincod®, included OTC and Rx categories, amounted to RUR 1,706.9 million, a decrease of 18.5% or RUR 386.4 million vs the same period of the previous year (RUR 2,093.3 million).9

Sales of Third Party Products in 2Q2012 grew by 6.2% or RUR 234.1 million and amounted to RUR 3,986.0 million vs RUR 3,751.9 million in the same period of the previous year. The sales leaders were Reduxin® (RUR 1,038.4 million), Prezista® (RUR 925.3 million), Mildronate® (RUR 236.8 million), Mabthera® (RUR 185.6 million).

Sales of Third Party Products in 1H2012 decreased by 20.4% or RUR 1,990.4 million and amounted to RUR 7,763.6 million vs RUR 9,754 million in the same period of the previous year. This reduction was due to the fact that most of the Company's TPP supplies, needed to meet the demand of Russian citizens in expensive medications in 2012, took place in 4Q2011.

Revenue of PJSC Pharmstandard-Biolek in 2Q2012 amounted to RUR 106.2 million. In the sales structure, sales of OTC products amounted to 7%, sales of Rx products – to 91.2% and other sales – to 1.7%.

Revenue of PJSC Pharmstandard-Biolek in 1H2012 grew by 43.4% or RUR 88.3 million and amounted to RUR 291.7 million vs RUR 203.3 million in the same period of the previous year.

Sales of medical equipment in 2Q2012 grew by 25.1% or RUR 41.2 million and amounted to RUR 205.8 million vs RUR 164.6 million in the same period of the previous year.

Sales of medical equipment and disposables in 1H2012 increased by 40.2% or RUR 109.1 million and amounted to RUR 380.2 million vs RUR 271.1 million in the same period of the previous year. The growth of the segment of medical equipment resulted from expansion of the product range following the commencement of sales through Pharmstandard-Medtechnika LLC. This joint venture was set up by group of companies DGM and OJSC Pharmstandard in June 2011 with the purpose of boosting sales of medical equipment for disinfection and sterilisation.

 

 

Pharmstandard’s structure of sales, 2Q 201210 
Including sales of PJSC “Pharmstandard-Biolek”

SALES STRUCTURE 2Q2012

2Q 2012, 
mln RUR

% of 
Total sales

2Q 2011,
mln RUR

% of Total sales

Change 2Q 2012/2Q 2011, mln RUR

Change 2Q 2012/2Q 2011, %

PHARMACEUTICAL PRODUCTS 

7,804.6

97.4%

6,818.8

97.6%

985.8

14.5%

PHS own

3,695.5

46.1%

2,997.4

42.9%

698.2

23.3%

OTC 

2,544.1

31.8%

2,172.2

31.1%

371.9

17.1%

BRANDED

2,029.7

25.3%

1,787.2

25.6%

242.5

13.6%

NON-BRANDED 

514.4

6.4%

385.0

5.5%

129.5

33.6%

RX 

1,151.4

14.4%

825.2

11.8%

326.2

39.5%

BRANDED 

987.7

12.3%

628.5

9.0%

359.1

57.1%

NON-BRANDED 

163.8

2.0%

196.7

2.8%

-32.9

-16.7%

TPP

3,986.0

49.8%

3,751.9

53.7%

234.1

6.2%

Velcade®

0.0

0.0%

1,650.7

23.6%

-1,650.7

-100.0%

Reduxin®

1,038.4

13.0%

351.6

5.0%

686.8

195.3%

Prezista®

925.3

11.6%

612.8

8.8%

312.6

51.0%

Mildronat®e

236.8

3.0%

192.5

2.8%

44.3

23.0%

Mabthera®

185.6

2.3%

324.6

4.6%

-139.1

-42.8%

Others TPP 

1,599.8

20.0%

619.6

8.9%

980.2

158.2%

Sales of API

123.1

1.5%

69.5

1.0%

53.5

77.0%

MEDICAL EQUIPMENT 

205.8

2.6%

164.6

2.4%

41.2

25.1%

TOTAL SALES 

8,010.3

100.0%

6,983.4

100.0%

1,027.0

14.7%

Pharmstandard’s structure of sales, 1H 201211 
Including sales of PJSC “Pharmstandard-Biolek”

SALES STRUCTURE 1H2012

1H 2012, 
mln RUR

% of Total sales

1H 2011, mln RUR

% of Total sales

Change 1H 2012/1H 2011, mln RUR

Change 1H 2012/1H2011, %

PHARMACEUTICAL PRODUCTS 

15,786.0

97.6%

18,382.4

98.5%

-2,596.4

-14.1%

PHS own

7,770.6

48.1%

8,480.2

45.5%

-709.6

-8.4%

OTC 

5,511.0

34.1%

6,668.2

35.7%

-1,157.3

-17.4%

BRANDED 

4,496.4

27.8%

5,714.6

30.6%

-1,218.2

-21.3%

NON-BRANDED 

1,014.6

6.3%

953.6

5.1%

61.0

6.4%

RX

2,259.6

14.0%

1,812.0

9.7%

447.6

24.7%

BRANDED 

1,866.3

11.5%

1,464.8

7.9%

401.4

27.4%

NON-BRANDED 

393.4

2.4%

347.2

1.9%

46.2

13.3%

TPP

7,763.6

48.0%

9,754.0

52.3%

-1,990.4

-20.4%

Velcade®

2,346.3

14.5%

1,650.7

8.8%

695.5

42.1%

Reduxin®

1,274.8

7.9%

426.0

2.3%

848.9

199.3%

Prezista®

934.8

5.8%

612.8

3.3%

322.0

52.5%

Mildronat®e

473.7

2.9%

455.9

2.4%

17.8

3.9%

Mabthera®

388.5

2.4%

4,176.8

22.4%

-3,788.3

-90.7%

Others TPP 

2,345.6

14.5%

2,431.9

13.0%

-86.3

-3.5%

Sales of API

251.8

1.6%

148.1

0.8%

103.6

70.0%

MEDICAL EQUIPMENT 

380.2

2.4%

271.1

1.5%

109.1

40.2%

TOTAL SALES 

16,166.3

100.0%

18,653.5

100.0%

-2,487.3

-13.3%

1 2Excluding third parties products. 
According to the database of Market Research Centre 'Pharmexpert'
4 5 6 7 8 9 Pursuant to the Decree No. 599 of the Government of the Russian Federation dated July 20, 2011 stipulating that from June 1, 2012 products containing codeine, can be purchased only with doctor’s prescription, sales of codeine-containing products are reflected in the Rx products sales section. Naturally, retrospective data regarding sales of such products prior to June 1, 2012, is included in the OTC product figures.

10 11 Taking into account sales of PJSC “Pharmstandard-Biolek” and pursuant to the Decree No. 599 of the Government of the Russian Federation dated July 20, 2011 stipulating that from June 1, 2012 products containing codeine, can be purchased only with doctor’s prescription, sales of codeine-containing products are reflected in the Rx products sales section. Naturally, retrospective data regarding sales of such products prior to June 1, 2012, is included in the OTC product figures.

 

 

 


 

NOTICE OF 1H201SALES RESULTS ANNOUNCEMENT DATE

Pharmstandard is pleased to invite the investment community to a sales results conference call with the management of the company followed by a Q&A session.

Thursday, July 26, 2012

09:00 New York
14:00 London
17:00 Moscow

International Call-in Number: +44 (0)20 7162 0025
US Call-in Number:
 +1 334 323 6201
Access Code
: 920326

Conference call participants can register in advance using the link below:

https://eventreg1.conferencing.com/webportal3/reg.html?Acc=493939&Conf=184597

We recommend that participants start dialing in 5-10 minutes prior to ensure a timely start to the conference call.

 

Pharmstandard will be represented by:

Igor Krylov, CEO
Elena Arkhangelskaya, CFO
Ilya Krylov, IR

Conference call presentation and press release 
will be available on Thursday, 26 July 2012

on Company's web-site: http://pharmstd.com/

The conference call replay will be available through August 4, 2012

International Replay Number: 020 7031 4064
Replay Access Code: 920326

Contacts:

Ilya Krylov 
Investor Relations Officer
OJSC Pharmstandard

+7 495 970 00 30 ext.2416
E-mail: ir@pharmstd.ru 

 

www.pharmstd.com


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

5B, Likhachyovsky Proezd, Dolgoprudny, Moscow Region, 141701, Russia

+7 (495) 970 0030/32

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