OREANDA-NEWS. On 23 May 2008 OJSC "VEROPHARM" announced preliminary data on its 1st Quarter 2008 sales and operational performance indicators based on its management reports.

Sales

In Q1 2008 sales of Veropharm’s finished goods have grown 40% compared to the same period in 2007, reaching USD 33.3 million.[1]

Rx drugs sales amounted to USD 20,7 million in Q1 2008, a 66% increase in comparison with Q1 2007. The Rx drugs sales accounted for 62% of total sales.[2]

In Q1 2008 traditional drug sales stood at USD 2,9 million, which represents 36% decrease as compared to Q1 2007, and made up 9% of total sales.

Adhesive bandages sales came to USD 6,7 million in Q1 2008, a 53% increase as compared to Q1 2007. The share of adhesive bandages in total sales was 20%.

OTC drugs sales amounted to USD 3 million in Q1 2008, a 24% increase in comparison with Q1 2007, their share in total sales being equal to 9%.

Veropharm sales as part of the Federal Reimbursement Program (FRP) came to USD 0,9 million in Q1 2008, accounting for 2,6% of the Company’s sales. By the results of Q1 2007, FRP sales were USD 1,0 million, or 4.2% of the Company’s total sales.[2]

Sales within the Russian Federation accounted for 97% of the Company’s sales in Q1 2008.

Rx drugs segment

Total sales of the five most popular prescription drugs by the results of Q1 2008 amounted to USD 11 million, or 53% of sales in the prescription drugs segment and 33% of the Company’s total finished goods sales. The  five top-selling Rx drugs in  Q1 2008 results include:

Bilumid (Bycalutamid, ATC[3] "Antineoplastic and immunomodulating agents"); 449% annual sales growth; CMR "Pharmexpert" named Bilumid which showed the fastest growth rate within TOP-100 trade marks in the FRP program, as the "Drug of the Month" in March 2008;

Irunine (Itraconazole, ATC "General anti—infectives systemic"), 34% annual sales growth;

Cerepro (Holina Alfostserat, ATC "Central nervous system"); 84% annual sales growth;

Amigrenin (Sumatriptan, ATC "Central nervous system"); 40% annual sales growth;

Doxorubicin-LENS (Doxorubicin, ATC "Antineoplastic and immunomodulating agents"); 133% annual sales growth.

Traditional drugs segment

The traditional drugs segment shows decreasing sales trend as stipulated by the market conditions and is fully expected by the Company. Total sales of the five most popular traditional drugs by the results of Q1 2008 amounted to USD 1,8 million, or 64% of sales in the traditional drugs segment and 6% of the Company’s total finished goods sales. The five top-selling traditional drugs in  Q1 2008 results include:

Magnesium sulfate; ATC "Agents affecting blood and blood forming organs"; 9% annual sales growth;

Calcium gluconate (Calcium gluconate;  ATC "Alimentary tract and metabolism"); 93% annual sales growth;

Dimedrole (Diphenhydramine;  ATC "Respiratory system"); 737% annual sales growth;

Sodium chloride (Sodium chloride;  ATC "Various"); 30% annual sales growth;

Pyridoxine  hydrochloride (Pyridoxine; ATC "Alimentary tract and metabolism"); 61% decrease in annual sales;

Adhesive bandages segment

In Q1 2008, the sales structure for adhesive patches did not change significally:

Conventional reel and bacterial adhesive bandages; 62% annual sales growth;

Therapeutic patches (capsicum and corn plasters), 94% annual sales growth;

Individual use branded patches; 2% decrease as compared to Q1 2007.

OTC drugs segment

Sales growth in OTC drugs segment in Q1 2008 is caused mainly by the sales growth of the drug Xilen (Xylometazoline), more than 2 times or 118%. Other positions experienced temporary decrease of sales growth figures due to governmental delays in registration of the licenses.

New drugs production and sales

During Q1 2008 Veropharm launched production and sales of the following new drugs:

Narkap (Aprotinine, ATC "Agents affecting blood and blood forming organs"); new indication — abstinence syndrome at opiomania (production launched in March 2008);

Poludan (Poly-A & Poly-U, ATC "Sensory organs"), new drug formulation — nasal drops; Q1 2008 sales USD 21,9 thousand (production launched in February 2008; produced in two dosage options):

Spiramycin-Vero (Spiramycin; ATC "General anti-infectives systemic"); Q1 2008 sales USD 12,5 thousand (production launched in March 2008)

In February 2008, Veropharm launched two new types of antibacterial wound dressings – with anti-inflammatory and healing action.

News drugs registration

In Q1 2008, Veropharm received registration for the new drugs by ATC-group:

Musculo-skeleton system — 1  product;

Anti-wart plaster with salicylic granules — 1 product;

Additionally, 22 more drugs and 4 more medical supplies are currently at different stages of the registration process. One medical supply is being registered as own development product, and three others by the contract as foreign ready-to-use medical supplies.

Debt

As of the end of Q1 2008 Veropharm’s debt amounted to USD 17,7 million.

[1] according to unaudited management accounts of OJSC "Veropharm"

[2] % — percent of finished goods sales

[3] ATC – anatomico-therapeutico-chemical group