Moscow, 27 August 2008 – OJSC “Pharmstandard” (LSE: PHST LI, RTS: PHST RU) today announced that it has agreed to acquire the Afobazol® trade mark for US$91.5 million (RUR 2.2 billion). The acquisition will be entirely financed from the Group’s funds.
Pharmstandard will acquire 100% of the shares in Donelle Company Limited, Cyprus, which has a wholly owned Russian subsidiary “Aphopharm” which owns the Afobazol® trade mark. The transaction is expected to close by the end of 2008.
Afobazol® is an original selective anxiolytic for anxiety disorders treatment. The product was developed by Russian scientists at the Zakusov State Foundation Institute of Pharmacology of the Russian Academy of Medical Sciences and was launched in 2006. Afobazol® is patent protected until 2019. There is a high prevalence of anxiety disorders in Russia and Afobazol® is expected to take significant market share due to its unique safety profile, as it has no influence on cognitive and motor function. According to Pharmexpert, the anxiolytics segment was RUR 1.3 billion in 2007 by sales volume. Afobazol® which was launched in 2006 had 17.2% market share and sales of RUR 223 million in retail prices in 2007.
Igor Krylov, CEO of JSC “Pharmstandard” commented:
“The acquisition of Afobazol® is the next step of the successful implementation of company strategy to expand our portfolio of innovative products. We consider this deal as a positive development for Pharmstandard and one that opens a new promising market segment.”
Contacts:
OJSC Pharmstandard
Maxim Stetsyuk
Anton Golubok
Tel: +7 495 970 0030
E-mail: pr@pharmstd.ru
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Notes to the editors:
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 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® (immunodulating) . 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 RUR2.8 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.
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