OREANDA-NEWS. July 9, 2007. OAO Veropharm announces 2006 financial results in accordance with the International Financial Reporting Standards.

Sales
Consolidated sales grew 26.6% y-o-y in 2006 and reached $100.5 million.
In 2006, sales of VEROPHARM's finished goods reached USD 99.0 million.*
The share of prescription drugs in VEROPHARM's sales increased from 45.4% in 2005 to 52.6% in 2006. The share of other product groups decreased: in adhesive bandages from 24.6% to 21.0%, in over-the-counter drugs from 9.0% to 8.3%, and in traditional medicines portfolio from 19.2% to 16.7% in 2006.*
VEROPHARM sales as part of the Federal Reimbursement Program (DLO) came to USD 6.2 million in 2006, accounting for 6% of the Company's sales.

Profits
VEROPHARM's gross profit grew 27.9% to $60.1 million in 2006. The gross profit margin increased from 59.2% to 59.8% in 2006.
Segment-wise the gross profit margin in 2006 increased y-o-y as follows: prescription drugs - from 72.6% to 74.1%; over-the-counter medicines - from 48.7% to 54.3%; traditional drugs - from 32.1% to 37.4%. The gross profit margin in the adhesive bandages segment decreased from 64.5% to 59.6%.*
The Company's EBITDA was up 20.3% at $28.9 million, and the EBITDA margin for 2006 amounted to 28.7%.
Net profit increased 14.5% y-o-y in 2006 and totaled $18.4 million.
Debt
In 2006 VEROPHARM's total debt reached $18.7 million.