OREANDA-NEWS. On 26 February 2009 JSC Pharmstandard (LSE: PHST LI, RTS: PHST RU) announced its unaudited 2008 sales results. The total revenue of the Company for the year increased by 28% and achieved RUR14,565 million (or USD 586 million).

Other highlights:

•         Pharmstandard has been included into the list of strategic companies by the Government of the Russian Federation;

•         Pharmstandard obtained European Union Good Manufacturing Practice (EU GMP) certifications for 6 production lines of JSC "Pharmstandard-Leksredstva";

•         International group of well-known scientists published the results of study of the mode of action of antiviral drug Arbidol® in the leading international virology journal - Antiviral Research (2009 Feb;81(2):132 -40). The study and the fact of publication of its results in major scientific peer-review journal confirm direct antiviral effect of Arbidol® bringing it into the line with worldwide-known anti-influenza medicines such as ozeltamivir. The sales of Arbidol® grew by 18% in 2008 and achieved RUR2,731 million.

•         Pharmstandard acquired the Afobazol® trade mark from Donelle Company Limited entirely financed from the own funds. Afobazol® is the new original selective anxiolytic for anxiety disorders treatment and is patent protected until 2019. Pharmstandard’s sales of Afobazol® started in August 2008 and reached RUR218 million;

•         Mildronate® project with Grindex developed well. Mildronate® sales achieved RUR1,368 million in 2008 and grew by 41%[2];

•         Pharmstandard announces successful development of SOLMIR project. According to the agreement with Solvay Pharmaceuticals (France), Pharmstandard will produce 2 immunomodulating products - IRS19® and Imudon®.  The sales of IRS19® has been recently started and achieved RUR31 million in December 2008;

•         Pharmstandard’s gene-engineering products showed noticeable dynamic. The sales of Biosulin® grew by 36% to RUR164 million;

•         From the beginning of the year, the Company launched 14 new products: Bloctran®, Influnorm®, Combilipen®, Complivit® ophtalmo, Complivit® Se, Complivit® Fe, Complivit® Mg,  Neipomax®, Neirocomplit®, Octolipen®, Neosmectin®, Lactazar®, Formetin® and Pentalgin® Plus. New products contribution was RUR 212 million in 2008.

Sales

In 2008 Pharmstandard’s sales increased by 28% to RUR14,565 million (USD 586 million), which represents the increase of RUR3,193 million in comparison with RUR11,371 million in 2007. Pharmaceutical products and medical equipment sales contributed 93% and 7% of total sales respectively. Sales growth for 9 months of 2008 was 34% and 26% in 4th quarter of 2008.

In 2008 the Company’s sales of pharmaceutical products achieved RUR13,488 million (USD 542 million) and increased by 38% compared to 2007.

The sales of OTC products were RUR10,567 million (USD 425 million) in 2008 and grew by 24% in comparison with prior-year period. Arbidol®, Terpincod®, Pentalgin®, Complivit®, Codelac®, Flukostat® (tablets), Amixin® and Afobazol® generated key sales growth in OTC segment.  OTC segment sales growth excluding Afobazol® and IRS 19® sales were 23% in 2008.

The Company’s revenue from prescription (Rx) products amounted to RUR2,856 million (USD 115 million) and increased by 140% compared with 2007. This increase in prescription sales was attributed to successful development of Mildronate® project as well as an increase in leading brands sales, such as Phosphogliv®, Biosulin®, Cyclodol®, Pikamilon® and Renipril®. Rx segment sales growth excluding Mildronate® sales was 25%.

In 2008 the Company reported revenues of RUR1,077 million (USD 43 million) from its medical equipment business, which represents a 33% decline in comparison with 2007 and generally attributable to the government tender sales in 2007.

According to Pharmexpert data, Pharmstandard is one of largest pharmaceutical companies operating in Russia[3]. Pharmstandard is a leader of the biggest commercial segment of the Russian pharmaceutical segment[4]. Pharmstandard is the only one among domestic pharmaceutical companies which ranked in TOP10 market leaders.

Pharmstandard is the only pharmaceutical company at the Russian market which has 6 brands  among top-10 (in comparison with 6 brands in top-20 in 2008) best selling domestic brands in Russia such as Arbidol®, Pentalgin®, Terpincod®, Complivit®, Codelac®, Flucostat® and Amixin®.