PHARMSTANDARD BECOMES THE FIRST RUSSIAN IPEC EUROPE MEMBER

Moscow, 01 July, 2009 – JSC Pharmstandard (LSE: PHST LI, RTS: PHST RU) has become a full member of the International Pharmaceutical Excipients Council (IPEC) Europe. 

Pharmstandard’s membership, the first member company based in Russia, is a milestone in the history of IPEC Europe and fits into its globalization strategy, i.e. the formation of an IPEC Federation of which IPEC Europe now counts 79 full members, including Eli Lilly, GlaxoSmithKline, Merck, Novartis, Pfizer, Sanofi-Aventis and Solvay.

Contacts:

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Pharmstandard

Pharmstandard is the leading Russian pharmaceutical company. According to Pharmexpert Marketing Research Centre, it holds the top position in the domestic pharmaceutical market retail segment and the second position among Russian pharmaceutical companies overall. Pharmstandard is the only Russian company among the top ten Russian pharmaceutical market operators.

Pharmstandard portfolio includes over 200 products used in the treatment of diabetes, growth hormone deficiency, cardiovascular diseases, gastroenterological and neurological disorders, infectious diseases, cancer, etc. Over 90 products offered by Pharmstandard are included in the List of Vital Pharmaceutical Products.

Pharmstandard products are well known to Russian consumers. Among our market-leading brands are Arbidol ®, Complivit®, Pentalgin®, Flucostat®, Codelac®, Phosphogliv®, Amiksin® and Afobazol®. Arbidol® is the leading brand on the Russian pharmaceutical market. Its antiviral action has been studied in international research centers. Pentalgin® has been granted “BRAND #1 IN RUSSIA” award for 2008 in analgesics category. Afobazol® - new original selective anxiolytic for anxiety disorders treatment.

Pharmstandard have agreements with Grindex, Latvia on exclusive distribution and promotion of Mildronate® (cardio-vascular) and with Solvay Pharmaceuticals, France on production of IRS19® and Imudon® (immunomodulating).

In 2004–2008, we developed and introduced over 35 new pharmaceutical products. Our business priorities lie in the development of new product lines comprising genetically engineered medicines, vitamin and mineral complexes, cold relief preparations and medicines used in the treatment of cardiovascular, gastroenterological, neurological disorders and endocrinopathies. Currently, the Company is working on the development of new high-tech formulations in close cooperation with the leading Russian research centres.

Pharmstandard operates four pharmaceutical manufacturing facilities in Kursk, Ufa, Tomsk and Nizhny Novgorod and, with a production capacity of 1.3 billion packs per year. Six production lines of JSC «Pharmstandard-Leksredstva» meet GMP requirements. JSC «Pharmstandard-Leksredstva» is the first Russian pharmaceutical plant included in EudraGMP database. All plants meet Russian legislative requirements.

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.

The Company has invested approximately RUR 3 billion in capital investments in its manufacturing facilities since 2004. Pharmstandard placed its shares on Russian Trading System (RTS) and GDRs on London Stock Exchange (LSE) during IPO in May 4, 2007. The current GDR to ordinary share ratio is 1:4. Augment Investments Limited controls 54.2% of share capital. Free float represents 45.8% of share capital (LSE – 27.5%, RTS – 18.3%).

www.pharmstd.ru

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International Pharmaceutical Excipients Council (IPEC) Europe 

The International Pharmaceutical Excipients Council (IPEC) Europe, is the unique association consisting of makers, distributors and users of pharmaceutical excipients in Europe. IPEC Europe represents the views of its members to appropriate regulatory bodies (European Commission, EMEA, and European Pharmacopoeia) and is recognized by global government agencies as the unified voice of European makers and users of pharmaceutical excipients. www.ipec-europe.org 

Association Management & Regulatory Services Ltd

Association Management & Regulatory Services Ltd has been given the assignment by the Board of IPEC Europe to contribute to sustained growth of the association. Special attention is paid to achieve a balanced representation of member companies in the geographic scope of the association: Europe, Middle East and Africa. www.amrs.nl

This press release does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of JSC Pharmstandard (the “Company”) or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this press release, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever.