OREANDA-NEWS. September 10, 2010. OJSC "VEROPHARM" [RTS:VRPH, MICEX:VFRM] announces preliminary data and operational performance indicators for the second quarter and the first half of 2010 year according to the management accounting.

Sales

In H1 2010 sales of Veropharm’s finished goods increased by 16% compared to the same period in 2009, reaching RUR 2,673.2 million. [1] Sales of finished goods in the second quarter of 2010 compared to the same period last year increased by 23%.

Rx drugs sales amounted to RUR 1,881.0 million in H1 2010, a 18% inecrease in comparison with H1 2009. The Rx drugs sales accounted for 70% of total finished goods sales. [2]

Adhesive bandages sales came to RUR 457.7 million in H1 2010, a 6% increase as compared to H1 2009. The share of adhesive bandages in total finished goods sales was 17%.

OTC drugs sales amounted to RUR 303.9 million in H1 2010, a 44% increase in comparison with H1 2009. The share of OTC drugs increased to 12% against 9% in the first half of 2009.

In H1 2010 traditional drug sales amounted to RUR 30.6 million, which represents 51% decrease as compared to H1 2009, and made up 1% of total finished goods sales.

Veropharm sales as part of the Federal Reimbursement Program (FRP) came to RUR 105.9 million in H1 2010, accounting for 4.0% of the Company’s total finished goods sales. [2] By the results of H1 2009, FRP sales were RUR 35.7 million, or 1.6% of the Company’s total finished goods sales.

Sales within the Russian Federation accounted for 98.5% of the Company’s total finished goods sales in H1 2010. In H12010 exports accounted for 1.5% of the Company’s total finished goods sales compared to 2.3% in H1 2009.

Rx drugs segment

Total sales of the five most popular prescription drugs by the results of H1 2010 amounted to RUR 642.3 million, or 34% of sales in the prescription drugs segment and 24% of the Company’s total finished goods sales.

The five top-selling Rx drugs in H1 2010 results include:

Cerepro (Holina Alfostserate, ATC [3] "Central nervous system"); 9% of sales in the prescription drugs segment;

Irunine (Itraconazole; ATC "Antiinfectives for systemic use"); 7% of sales in the prescription drugs segment;

Tautax (Docetaxel; ATC "Antineoplastic and immunomodulating agents"); 6% of sales in the prescription drugs segment;

Paclitaxel-LENS (Paclitaxel; ATC "Antineoplastic and immunomodulating agents"); 6% of sales in the prescription drugs segment;

Bilumid (Bycalutamid; ATC "Antineoplastic and immunomodulating agents"); 6% of sales in the prescription drugs segment.

Adhesive bandages segment

In H1 2010 observed the following changes in the segment of adhesive bandages:

Conventional bacterial adhesive bandages; 48% of sales in the adhesive bandages segment in 1H 2010 (as compared with 41% in 1H 2009);

Conventional reel adhesive bandages; share of sales remained at the level of the first half of 2009 and amounted to 30%;

Therapeutic patches - corn plasters, 14% of sales in the adhesive bandages segment in 1H 2010 (as compared with 13% in 1H 2009);

Therapeutic patches - pepper plasters, 8% of sales in the adhesive bandages segment in 1H 2010 (as compared with 16% in 1H 2009).

OTC drugs segment

The following drugs made 44% y-o-y sales growth in OTC drugs segment in 1H 2010:

Xilen (Xylometazoline; ATC "Respiratory system"); 48% of sales in the OTC drugs segment;

Slabilen (Sodium picosulfate; ATC "Alimentary tract and metabolism"); 29% of sales in the OTC drugs segment;

Motilak (Domperidone; ATC "Alimentary tract and metabolism"); 16% of sales in the OTC drugs segment;

Ginecotex vaginal tablets (Benzalkonium chloride; ATC "Urinary system&sex hormone"); 2% of sales in the OTC drugs segment;

Veromistine (Benzyldimethyl-myristoikamino-propylammonium monohydrate; ATC "Dermatologicals"); 2% of sales in the OTC drugs segment.

Traditional drugs segment

Total sales of the five most popular traditional drugs by the results of H1 2010 amounted to RUR 28.3 million, or 92% of sales in the traditional drugs segment.

The five top-selling traditional drugs in H1 2010 results include:

Pyridoxine (Pyridoxine; ATC "Alimentary tract and metabolism"); 56% of sales in the traditional drugs segment;

Vero-Dexamethasone (Dexamethasone; ATC "Hormonal drugs"); 20% of sales in the traditional drugs segment;

Vero-Ciprofloxacin (Ciprofloxacin; ATC "Antiinfectives for systemic use"); 7% of sales in the traditional drugs segment;

Vero-Loperamide (Loperamide; ATC "Alimentary tract and metabolism"); 5% of sales in the traditional drugs segment;

Paracetamol (Paracetamol; ATC "Nervous system"); 4% of sales in the traditional drugs segment.

New drugs production and sales

During H1 2010 Veropharm launched production and sales of the following new drugs:

Sypresta (Mycophenolate mofetil; АТС "Antineoplastic and immunomodulating agents"); sales amounted to RUR 29.4 million;

Ekzorum (Oxaliplatin; АТС "Antineoplastic and immunomodulating agents"); new dosage – 150 mg №1; sales amounted to RUR 18.9 million;

Vero-Bleomycin (Bleomycin; АТС "Antineoplastic and immunomodulating agents"); sales amounted to RUR 8.3 million;

Veromistin Silver (Myramistin; Remedy for intimate hygiene); sales amounted to RUR 2.9 million;

Veromistin Daily (Myramistin; Remedy for hygienic treatment of the skin of hands and feet); sales amounted to RUR 2.1 million;

Veromistin Flores (Myramistin; Remedy for oral hygiene); sales amounted to RUR 2.0 million;

GeptorDaily (Ademetionine; АТС "Alimentary tract and metabolism"); new drug formulation - tablets 200mg №30; sales amounted to RUR 1.5 million;

Vero-Ribavirin (Ribavirin; АТС "Antiinfectives for systemic use"); new drug formulation - capsules 200mg №12; sales amounted to RUR 1.0 million.

New drugs registration

In H1 2010, Veropharm received registration for the new drugs:

Aromeston (Еxemestane; ATC "Antineoplastic and immunomodulating agents");

Verotecan (Topotecan; ATC "Antineoplastic and immunomodulating agents");

Vero-Netilmicin (Netilmicin; ATC "Antiinfectives for systemic use");

Osteover (Calcitonin; ATC "Hormonal preparations for systemic use");

Veroclast (Zoledronic acid; ATC "Musculo-skeletal system");

Bergolak (Cabergoline; ATC "Urinary system&sex hormone").

Additionally, 8 more drugs are currently at different stages of the registration process.

Debt

As of the end of first half 2010 Veropharm’s debt amounted to RUR 774.7 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