OREANDA-NEWS. February 15, 2010. Pharmsatandard posted strong 4Q09 operating results, with ruble sales increasing 140% YoY (+68% for FY09), reported the press-centre of OTKRITIE Financial Corporation.

Revenues from pharmaceutical products increased 152% YoY in ruble terms in 4Q09 (+77% for FY09).

OTC segment was up 95% YoY in ruble terms (+43% in FY09).

RX segment, including 3rd parties products, surged 357% in ruble terms in 4Q09 (+200% in FY09).

As expected, Medical equipment sales for FY09 were down 36% in ruble terms. The company earns a low margin on Velcade distribution: excluding Velcade, total sales increased 114% in ruble terms in 4Q09 (+49% for FY09).

View: Sales in 2009 were surprisingly strong, with the bulk of revenue coming from Arbidol (RUB2.9bn), due to the widespread cases of flu, and such high sales levels might not continue into 2010.

Valuation: The stock currently trades on a 2010 EV/EBITDA of 9.7x, which is a 31% discount to EM peers.

Action: We think that the market will react positively to the strong 4Q09 operating results, and reiterate our BUY rating for the stock.