OREANDA-NEWS. April 09, 2010. OJSC "VEROPHARM" [RTS:VRPH, MICEX:VFRM] announces preliminary data and operational performance indicators of 2009 year according to the management accounts.

SALES

In 2009 sales of Veropharm’s finished goods were up by 2% in comparison with 2008 and amounted RUR 4 395.1 mln.[1] By the 4 quarter 2009 sales finished goods decrease by 4%.

Rx drugs sales amounted to RUR 3 013.4 million in 2009, a 7% increase in comparison with 2008. The Rx drugs sales accounted for 69% of total finished goods sales. [2]

Adhesive bandages sales came to RUR 765.0 million in 2009 and remained at the level of 2008. The share of adhesive bandages in total finished goods sales was 17%.

OTC drugs sales amounted to RUR 526.8 million in 2009, a 36% increase in comparison with 2008. The share of OTC drugs makes 12% of total finished goods sales.

In 2009 traditional drug sales amounted to RUR 90.0 million, which represents a 73% decrease as compared to 2008, and made up 2% of total finished goods sales.

Veropharm sales as part of the Federal Reimbursement Program (FRP) came to RUR 53.2 million in 2009, accounting for 1.2% of the Company’s total finished goods sales. [2] By the results in 2008, FRP sales were RUR 105.6 million, or 2.4% of the Company’s total finished goods sales. Sales of Bilumid, Geptor and Paclitaxel through FRP accounted for 54% of the Veropharm total FRP sales in 2009.

The Russian Federation is the main market and provides 98% of the Company's sales. In 2009 exports accounted for 2% of the Company’s total finished goods sales compared to 3% in 2008.

RX DRUGS SEGMENT

Total sales of the five most popular prescription drugs by the results in 2009 amounted to RUR 1 116.1 million, or 37% of sales in the prescription drugs segment and 25% of the Company’s total finished goods sales[2].

The five top-selling Rx drugs in 2009 results include:

Bilumid (Bycalutamid, ATC[3] "Antineoplastic and immunomodulating agents"); 10% of sales in the prescription drugs segment;

Paclitaxel-LENS (Paclitaxel; ATC "Antineoplastic and immunomodulating agents"); 9% of sales in the prescription drugs segment;

Irunine (Itraconazole, ATC "General anti-infectives systemic"), 7% of sales in the prescription drugs segment;

Cerepro (Holina Alfostserat, ATC "Central nervous system"); 6% of sales in the prescription drugs segment;

Taytax (Docetaxel, ATC "Antineoplastic and immunomodulating agents"); 5% of sales in the prescription drugs segment.

ADHESIVE BANDAGES SEGMENT

In 2009 segment of Adhesive bandages had the following structure:

Conventional reel and bacterial adhesive bandages; 51% of sales in the adhesive bandages segment;

Therapeutic patches (capsicum and corn plasters); 32% of sales in the adhesive bandages segment;

Individual use branded patches (“Uniplast” and “Smart”); 17% of sales in the adhesive bandages segment.

OTC DRUGS SEGMENT

Total sales of five products in the OTC drugs segment amounted to nearly 100% sales of segment in 2009:

Xilen (Xylometazoline; ATC "Respiratory system"); 47% of sales in the OTC drugs segment;

Slabilen (Sodium picosulfate; ATC "Alimentary tract and metabolism"); 30% of sales in the OTC drugs segment;

Motilak (Domperidone; ATC "Alimentary tract and metabolism"); 13% of sales in the OTC drugs segment;

Vitasharm and Vitatress (ATC "Vitamins"); 7% of sales in the OTC drugs segment;

Poludan nasal (Polyadenilic acid + Polyuridilic acid; ATC "Drugs for the treatment of sensory"); 2% of sales in the OTC drugs segment.

TRADITIONAL DRUGS SEGMENT

Total sales of the five most popular traditional drugs by the results in 2009 amounted to RUR 67.7 million, or 75% of sales in the traditional drugs segment and 2% of the Company’s total finished goods sales[2].

The five top-selling traditional drugs in 2009 results include:

Pyridoxine hydrochloride (Pyridoxine; ATC "Alimentary tract and metabolism"); 35% of sales in the traditional drugs segment;

Vero-Dexamethasone (Dexamethasone; ATC "Hormonal drugs"); 14% of sales in the traditional drugs segment;

Magnesium sulfate (Magnesium sulfate; ATC "Agents affecting blood and blood forming organs"); 13% of sales in the traditional drugs segment;

Vero-Ciprofloxacin (Ciprofloxacin; ATC "General anti-infectives systemic"); 8% of sales in the traditional drugs segment;

Riboxin (Inosine; ATC "Сardiovascular system"); 5% of sales in the traditional drugs segment.

NEW DRUGS PRODUCTION AND SALES

During 2009 Veropharm launched production and sales of the following new drugs:

Gemcitover (Gemcitabine; ATC "Antineoplastic and immunomodulating agents"); in 2009 sales amounted to RUR 24.3 million;

Meropenem-Vero (Meropenem; ATC "General anti-infectives systemic"); in 2009 sales amounted to RUR 23.6 million;

Vero-Spironolactone (Spironolactone; ATC "Cardiovascular system"); in 2009 sales amounted to RUR 0.6 million;

Betaver (Betahistine; ATC "Central nervous system"), new drug formulation - tablets 24mg №20; in 2009 sales amounted to RUR 7.1 million;

Bilumid (Bycalutamid; ATC "Antineoplastic and immunomodulating agents"); new dosage – 50 mg №30; in 2009 sales amounted to RUR 13.6 million.

During 2009 Veropharm launched production of the new drugs; sales of which will expect in 2010:

Veromistin Silver (Myramistin; Remedy for intimate hygiene);

Veromistin Daily (Myramistin; Remedy for hygienic treatment of the skin of hands and feet);

Sypresta (Mycophenolate mofetil; АТС "Antineoplastic and immunomodulating agents").

In 2009 the Company also launched a new line of hemostatic products (sprays, nasal tampons, blotters, pulvis); in 2009 sales amounted to RUR 5.9 million.

NEW DRUGS REGISTRATION

In 2009 Veropharm received registration for the new drugs by ATC-group:

Musculoskeletal system - 2 products;

Antineoplastic and immunomodulating agents – 1 product;

Central nervous system - 1 product;

Antimicrobials -1 product;

Urogenital system and reproductive hormones - 1 product;

Products for hygienic treatment of the skin of hands and feet, intimate hygiene and oral hygiene - 3 products.

Additionally, 9 drugs and 10 active pharmaceutical ingredients are currently at different stages of the registration process.

DEBT

At the end of 2009 Veropharm’s debt amounted to RUR 981.5 million, that represents less than 20% of net assets.

[1] according to unaudited management accounts of OJSC “Veropharm”

[2] % - percent of finished goods sales

[3] ATC – anatomico-therapeutico-chemical group