Moscow, 19 October, 2009 – JSC Pharmstandard (LSE: PHST LI, RTS: PHST RU) announces its unaudited IFRS sales results for the nine-month period ended 30 September 2009. The total revenue of the Company for the nine months of 2009 amounted to RUR14,539 , an increase of 40% over 9m2008.

Sales

Pharmstandard’s sales for the nine months of 2009 increased by 40% to RUR14,539 million, which represents the increase of RUR4,179 million in comparison with RUR10,360 million reported in the same period of 2008. Pharmaceutical products and medical equipment sales contributed 97% and 3% of total sales respectively.

The Company’s sales of pharmaceutical productsachieved RUR14,103 million for the nine months of 2009 and increased by 47% compared to prior-year period. Pharmaceutical products organic sales growth excluding Velcade® and Mildronate® sales was 27%.

The sales of OTC products were RUR9,319 million for the nine months of 2009 and grew by 24% in comparison with nine-month period of 2008. Arbidol®, IRS19®, Afobazol®, Imudon®, Pentalgin®, Complivit®, Codelac® and Amixin® generated key sales growth in OTC segment. 

The Company’s revenue from prescription (Rx) products amounted to RUR4,727 million and increased by 138% compared with the same period of 2008. The prescription products sales were driven not only by an increase in leading brands sales, such as Phosphogliv®, Combilipen® (launched in 2008), Rastan®, Pikamilon®, Biosulin®, and Azitrox® but also by successful implementation of Velcade® (sales – RUR2,278 for 9m2009) and Mildronate® (sales – RUR805 for 9m2009) projects. Rx segment organic growth excluding Velcade® and Mildronate® sales was 50%.

The Company’s revenue from its medical equipment business totaled RUR435 mln for the nine months of 2009, which represents a 45% decline in comparison with the same period of 2008.

Sales structure – 9m 2009, RUR mln.

9M 2009	2009 (mln RUR)	2008 (mln RUR)	Difference (mln RUR)	Difference (%)
Pharmaceutical products	14 103	9 563	4 541	47%
OTC products	9 319	7 545	1 774	24%
Branded products	7 870	6 494	1 377	21%
Non-branded products	1 449	1 051	398	38%
Prescription products	4 727	1 984	2 743	138%
Branded products	4 412	1 767	2 645	150%
Mildronate	805	889	-84	-9%
Velcade	2 278	0	2 278	-
Non-branded products	314	217	98	45%
Other sales	58	34	24	71%
Medical equipment and disposables	435	797	-362	-45%
Total sales	14 539	10 360	4 179	40%

 

Sales structure – 3q 2009, RUR mln.

3Q 2009	2009 (mln RUR)	2008 (mln RUR)	Change (mln RUR)	%  09 to 08
Pharmaceutical products	4 315	3 891	425	11%
OTC products	3 588	3 221	366	11%
Branded products	3 035	2 764	271	10%
Non-branded products	553	457	96	21%
Prescription products	712	657	55	8%
Branded products	572	547	25	5%
Mildronate	131	261	-130	-50%
Velcade	0	0	0	-
Non-branded products	140	110	30	27%
Other sales	15	13	2	15%
Medical equipment and disposables	162	270	-108	-40%
Total sales	4 477	4 161	316	8%

 

Conference Call

 

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.

 

Monday, October 19, 2009

09:00 New York

14:00 London

17:00 Moscow

 

To join the conference please register on-line in advance using the link below:

https://eventreg1.conferencing.com/webportal3/reg.html?Acc=916302&Conf=168893

or dial:

International Call-in Number:  +44 (0)20 7162 0025

US Toll Number : +1 334 323 6201

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

 

Conference call presentation will be available on Monday, 19 October 2009 on Company’s web-site:

http://www.pharmstd.ru/investors_en/investor/p2/

 

Pharmstandard will be represented by:

Igor Krylov, CEO

Elena Arkhangelskaya, CFO

 

The conference call replay will be available through October 22, 2009.

International Replay Number: +44 (0)20 7031 4064
US Toll Replay Number: +1 954 334 0342
Replay Access Code: 848065

Contacts:
JSC Pharmstandard
Anton Golubok
Tel: +7 495 970 0030 ext 2029
E-mail: ir@pharmstd.ru
www.pharmstd.ru

 

***

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 is a full member of the International Pharmaceutical Excipients Council (IPEC) Europe. 

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 f or 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 2004–2009, we developed and introduced around 40 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

 

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.