Moscow, 15 October, 2008 – OJSC Pharmstandard (LSE: PHST LI, RTS: PHST RU) announces its unaudited IFRS sales results for the nine-month period ended 30 September 2008.

Sales

Pharmstandard’s sales for the nine months of 2008 increased by 34% to RUR10,360 million (US$431[1] million), which represents the increase of RUR2,605 million in comparison with RUR7,755 million in prior-year period of 2007. Pharmaceutical products and medical equipment sales contributed 92% and 8% of total sales respectively.

The Company’s sales of pharmaceutical products achieved RUR9,563 million (US$398 million) for the nine months of 2008 and increased by 44% compared to the sales for the same period of 2007.

The sales of OTC products were RUR7,517 million (US$313 million) for the nine months of 2008 and grew by 36% in comparison with nine-month period of 2007. Arbidol®, Amixin®, Codelac®, Complivit®, Pentalgin® and Terpincod® generated key sales growth in OTC segment. Pentalgin® has been granted “BRAND #1 IN RUSSIA” award for 2008 in analgesics category.  

The Company’s revenue from prescription (Rx) products amounted to RUR2,014 million (US$84 million) and increased by 84% compared with the same period of 2007. This increase in prescription sales was attributed to successful development of Mildronate® project as well as an increase in leading brands sales, such as Biosulin®, Cyclodol®, Phosphogliv®, Renipril® and Combilipen®.

From the beginning of the year, the Company launched 12 new products: Bloctran®, Influnorm®, Combilipen®, Complivit® ophtalmo, Complivit® Se, Complivit® Fe, Complivit® Mg,  Neipomax®, Neirocomplit®, Octolipen®, Neosmectin®, and Pentalgin® Plus.

The Company reported revenues of RUR797 million (US$33 million) from its medical equipment business, which represents a 28% decline from the prior–year period and generally attributable to the government tender sales in 2007.

 

The sales structure of OJSC Pharmstandard, RUR mln.

 

	Nine-month period ended 30 September 2008	Nine-month period ended 30 September 2007	Change,  %
SALES:
Pharmaceutical products	9 563	6 653	44%
OTC products	7 517	5 521	36%
Prescription products	2 014	1 094	84%
Other sales	33	38	-5%
Medical equipment and disposables	797	1 102	-28%
Total Sales	10 360	7 755	34%

 

 

Contacts:

OJSC Pharmstandard

Anton Golubok

Tel: +7 495 970 0030 ext 2029

E-mail: ir@pharmstd.ru

www.pharmstd.ru

 

 

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Notes to the editors:

 

Pharmstandard is the leading domestic pharmaceutical company in Russia and the second 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 original and generic pharmaceutical products in various formulations, primarily in Russia.  Pharmstandard’s product portfolio includes market-leading brands (7 brands among top-15 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), Flucostat® (antifungal), Amixin® (immunomodulating) . 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. Pentalgin® has been granted “BRAND #1 IN RUSSIA” award for 2008 in analgesics category.  

 

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 RUR2.8 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, markets and sells medical equipment, such as sterilizing and distilling machines, and disposable medical products.

www.pharmstd.ru

 

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[1] All USD figures based on average exchange rates for the relevant periods.  USD/RUR exchange rate for nine-month period ended 30 September 2008 was 24.0294.