OREANDA-NEWS. October 30, 2007. Veropharm [RTS: VRPH, MICEX: VFRM] announces its preliminary sales and operational results for the first nine months of 2007 according to the management’s accounting report.

Sales
According to management’s estimates, Veropharm’s net sales totaled $92.9 mln* in the first nine months of 2007.
Sales of Veropharm’s finished goods increased 32% y-o-y, totaling $90.2 mln in the first nine months of 2007.

Sales of prescription drugs in this period totaled $49.9 mln, demonstrating a 39% y-o-y growth.  The percentage of prescription drugs in the total sales volume was 55.3%**.
Sales of traditional drugs totaled $15.1 mln, demonstrating a 33% y-o-y growth.  The percentage of traditional drugs in the total sales volume was 16.7%.
Sales of adhesive bandages totaled $17.5 mln, demonstrating a 15% y-o-y growth.  The percentage of adhesive bandages in the total sales volume was 19.4%.
Sales of non-prescription drugs totaled $7.7 mln, demonstrating a 31% y-o-y growth. The percentage of non-prescription drugs in the total sales volume was 8.6%.
Veropharm’s sales within the Federal Reimbursement Program (FRP) totaled $4.3 mln, or 5% of the company’s sales. In the same period in 2006, Veropharm’s sales within the program totaled $5.2 mln, or 8% of the company’s sales.
Veropharm’s sales in Russia accounted for 95.8% of the company’s sales in the first nine months of 2007.

Prescription Drugs Segment
Sales of Veropharm’s five best-selling prescription drugs in the first nine months of 2007 totaled $21.3 mln, or 43% of all prescription drugs sales and 24% of the company’s overall sales.

The five best-selling prescription drugs in the first nine months of 2007 were:
Irunin (Itraconazole); sales increased 10% y-o-y;
Paclitaxel-LANS (Paclitaxel); sales increased 46% y-o-y;
Doxorubicin-LANS (Doxorubicin); sales increased 104% y-o-y;
Cerepro (Choline alfoscerate); sales increased 839% y-o-y;
Amigrenin (Sumatriptan); sales increased 53% y-o-y.

Traditional Drugs Segment
Sales in the traditional drugs segment continue to grow due to reduced production volume by other Russian pharmaceutical enterprises and to stable demand for these medicines.
Sales of Veropharm’s five best-selling traditional drugs in the first nine months of 2007 totaled $8.1 mln, or 54% of all traditional drugs sales and 9% of the company’s overall sales.

The five best-selling traditional drugs in the first nine months of 2007 were:
Novocain (Procaine) – sales increased 191% y-o-y;
Pyridoxine hydrochloride (Pyridoxine) – sales increased 48% y-o-y;
Thiamine chloride (Thiamine) – sales increased 87% y-o-y;
Cyanocobalamin – sales increased 335% y-o-y;
Nicotinic acid – sales decreased 20% y-o-y.
Adhesive Bandages Segment
Veropharm made a concerted effort to increase the market shares of its name-brand products (Uniplast and SMART) in the adhesive bandages segment by actively promoting them in retail supply chains.

The sales structure of adhesive bandages during the first nine months of 2007 was:
Traditional rolled and antibacterial bandages – sales increased 21% y-o-y;
Therapeutic patches (capsicum and corn adhesive bandages) – sales decreased 13% y-o-y;
Name-brand products for individual use (Uniplast and SMART) – sales increased 42% y-o-y.
OTC Drugs Segment

Sales of OTC drugs increased 31% y-o-y due to the sales performance of the following drugs:
Xylen (Xylometazoline) – sales increased 65% y-o-y;
Motilak (Domperidone) – sales increased 50% y-o-y;
Slabilen (Sodium picosulfate) – sales decreased 4% y-o-y.
Production and Marketing of New Drugs

In Q3 2007, Veropharm began production and distribution of new drugs and medical products:
Betaver (Betahistine) – angioprotector, microcirculation improving medicine (histaminomimetic);
Guinekoteks (Benzalkonium cloride) – contraceptive;
Five new types of Uniplast wound dressings with analgesic, antibacterial and anti-inflammatory effects.
Registration of New Medicines

During the first nine months of 2007, Veropharm successfully registered five new drugs. In Q3 2007, it registered new drugs in the following pharmaceutical groups:
Anticancer and immune response modifier medicines – one medicine;
Antibacterial medication for systemic use – one pharmaceutical form.

Production of these medicines is scheduled for 2007—2008.
Debt

At the end of the first nine months of 2007, Veropharm debt was $23.9 mln.