Moscow, July 23, 2008 – OJSC Pharmstandard (LSE: PHST LI, RTS: PHST RU), the leading domestic pharmaceutical company in Russia and the third largest pharmaceutical company operating in Russia overall, announces its unaudited IFRS sales results for the first 6 months 2008.

 

Sales (unaudited IFRS results)

According to its unaudited report, Pharmstandard’s sales for the first 6 months of 2008 increased by 40% to RUR6,199 million (US$259[1] million), which represents a gain of RUR1,773 million (US$89 million) compared to RUR4,426 million (US$170 million) reported in first half 2007. Pharmaceutical products sales contributed 92% while medical equipment and disposables sales contributed 8% of total Company sales.

The Company’s sales of pharmaceutical products achieved RUR5 673 million (US$237 million) for the first six months of 2008 and increased by 50% compared to the sales for the same period of 2007. Significant growth was generally attributed to the increase in sales of the leading brands of the Company.

The sales of OTC products were RUR4,324 million (US$181 million) and increased by 41% in first half 2008. Increase in OTC products sales generally attributable to increase of sales of the leading OTC branded products such as Arbidol®, Pentalgin®, Complivit®, Flucostat®, Terpincod® and Codelac®.

The Company’s revenue from Rx products amounted to RUR1,327 million (US$55 million) and increased by 98% compared to the same period of 2007. Rx sales was attributed to the start of the new Mildronate® project as well as an increase in leading brands sales of Phosphogliv®, Amixin® and Biosulin®. The sales of Mildronate® product achieved RUR627 million (US$26 million) in the first half 2008. The share of Rx products sales in total pharmaceutical products sales increased from 18% in first half 2007 to 23% in the same period of 2008.

The Company started production and launched sales of the 8 new products in the first 6 months of 2008 such as Bloctran®, Influnorm®, Combilipen®, Complivit® ophtalmo, Neipomax®, Neirocomplit®, Octolipen® and Pentalgin® Plus. The sales of the new products in first half 2008 achieved RUR50 million (US$2 million).

The Company reported revenues of RUR526 million (US$22 million) from its medical equipment business, which represents a 19% decline from the prior–year period and generally attributable to the tender sales in first half 2007.

 

The sales structure for OJSC Pharmstandard, RUR million.

 

SALES:	6 months 2008,  (mln. Rur)		6 months 2007,  (mln. Rur)		Change %
Pharmaceutical products	5 673		3 777		50%
OTC products	4 324		3 067		41%
Prescription products	1 327		670		98%
Other sales	22		41		-46%
Medical equipment and disposables	526		649		-19%
Sale of goods	6 199		4 426		40%

 

Contacts:

OJSC Pharmstandard

Maxim Stetsyuk

Tel: +7 495 970 0030

E-mail: pr@pharmstd.ru

www.pharmstd.ru

 

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Overview of the Company:

 

Pharmstandard is the leading domestic pharmaceutical company in Russia and the third largest pharmaceutical company operating in Russia overall, by sales value. Pharmstandard is a leader of the biggest commercial segment of the Russian pharmaceutical segment. The Company develops, manufactures, markets and sells generic and, to a lesser extent, original pharmaceutical products in various formulations, primarily in Russia.  Pharmstandard’s product portfolio includes market-leading brands (6 brands among top-20 best selling domestic brands in Russia), such as Arbidol® (antiviral for systemic use), Pentalgin® (analgesics), Terpincod® (cough and cold), Complivit® (vitamins), Codelac® (cough and cold) and Flucostat® (antifungal). In 2007, Arbidol® was the largest selling pharmaceutical product at the commercial segment of the Russian pharmaceutical market, according to pharmacy audit data by Pharmexpert.

 

Pharmstandard operates five manufacturing facilities in Russia and, with a production capacity of 1.3 billion packs as of December 31, 2007, has one of the largest production capacities among domestic pharmaceutical companies in Russia. The Company has invested approximately RUR2.4 billion in capital investments in its manufacturing facilities since the start of 2004. Pharmstandard’s flexible production capacity distinguishes it from its competitors by allowing it to quickly and efficiently adjust production based on input from its distributors and sales force.

In addition to its pharmaceutical business, the Company also develops, manufactures, ma rkets and sells medical equipment, such as sterilizing and distilling machines, and disposable medical products.

www.pharmstd.ru

 

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^[1] All data in US dollars calculated based on average exchange rates as follows: for the 6 months 2007 1USD = 26,10 RUR and for the 6 months 2008 1USD = 23,93RUR