OREANDA-NEWS. December 7, 2010. OJSC "VEROPHARM" [RTS:VRPH, MICEX:VFRM] announces preliminary data and operational performance indicators for the first nine months of 2010 year according to the management accounts.

Sales

For 9M 2010 sales of Veropharm’s finished goods amounted RUR 3,934.0 million and increased by 22.4% in comparison with 9M 2009 (RUR 3,215.3 million for the 9M 2009).[1]

Rx drugs sales amounted to RUR 2,760.3 million for 9M 2010, a 30.7% increase in comparison with 9M 2009 (RUR 2,112.7 million for the 9M 2009). The Rx drugs sales accounted for 70% of total finished goods sales.[2]

Adhesive bandages sales came to RUR 631.2 million for 9M 2010, a 2.1% decrease as compared to 9M 2009 (RUR 644.7 million for the 9M 2009). The share of adhesive bandages in total finished goods sales was 16%.

OTC drugs sales amounted to RUR 504.5 million for 9M 2010, a 36.9% increase in comparison with 9M 2009 (RUR 368.5 million for the 9M 2009). The share of OTC drugs makes 13% of total finished goods sales.

For 9M 2010 traditional drug sales amounted to RUR 38.0 million, which represents a 57.5% decrease as compared to 9M 2009 (RUR 89.4 million for the 9M 2009), and made up 1% of total finished goods sales.

Veropharm sales as part of the Federal Reimbursement Program (FRP) came to RUR 129.0 million for 9M 2010, accounting for 3.3% of the Company’s total finished goods sales.[2] By the results of 9M 2009, FRP sales were RUR 45.8 million, or 1.5% of the Company’s total finished goods sales.

Sales within the Russian Federation accounted for 96.3% of the Company’s total finished goods sales for 9M 2010. For the 9M 2010 exports accounted for 3.7% of the Company’s total finished goods sales compared to 2.4% for the first nine months of 2009.

Rx drugs segment

Total sales of the five most popular prescription drugs by the results of 9M 2010 amounted to RUR 949.5 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 for 9M 2010 results include:

Cerepro (Holina Alfostserat; ATC[3] Central nervous system); 8% of sales in the prescription drugs segment;

Geptor (Ademetionine; ATC Digestive tract and metabolism); 8% of sales in the prescription drugs segment;

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

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

Doxorubicin-LENS (Doxorubicin; ATC Antineoplastic and immunomodulating agents); 5% of sales in the prescription drugs segment.

Adhesive bandages segment

For 9M 2010 in a segment of Adhesive bandages observed the following changes:

Conventional bacterial adhesive bandages; 45% of sales in the adhesive bandages segment for 9M 2010 (as compared with 40% for 9M 2009);

Conventional reel adhesive bandages; share of sales remained at the level 9M 2010 and amounted to 30%;

Therapeutic patches — pepper plasters, 13% of sales in the adhesive bandages for 9M 2010 (as compared with 19% for 9M 2009);

Therapeutic patches — corn plasters, 12% of sales in the adhesive bandages segment for 9M 2010 (as compared with 11% for 9M 2009).

OTC drugs segment

Total sales of the five products in the OTC drugs segment by the results of 9M 2010 amounted to RUR 487.8 million, or 97% of sales in the OTC drugs segment.

The five top-selling OTC drugs for 9M 2010 results include:

Xilen (Xylometazoline; ATC Respiratory system); 50% of sales in the OTC drugs segment;

Slabilen (Sodium picosulfate;  ATC Alimentary tract and metabolism); 27% of sales in the OTC drugs segment;

Motilak (Domperidone; ATC Alimentary tract and metabolism); 15% of sales in the OTC drugs segment;

Vitasharm and Vitatress (ATC Vitamins); 3% 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.

Traditional drugs segment

Total sales of the five most popular traditional drugs by the results of 9M 2010 amounted to RUR 35.7 million, or 94% of sales in the traditional drugs segment.

The five top-selling traditional drugs for 9M 2010 results include:

Pyridoxine  hydrochloride (Pyridoxine; ATC Alimentary tract and metabolism); 50% of sales in the traditional drugs segment;

Vero-Dexamethasone (Dexamethasone; ATC Hormonal drugs); 25% of sales in the traditional drugs segment;

Vero-Ciprofloxacin (Ciprofloxacin; ATC General anti-infectives systemic); 10% of sales in the traditional drugs segment;

Paracetamol (Paracetamol; ATC Nervous system); 5% of sales in the traditional drugs segment;

Vero-Loperamide (Loperamide; ATC Alimentary tract and metabolism); 4% of sales in the traditional drugs segment.

New drugs production and sales

During the first nine months in 2010 Veropharm launched production and sales of the following new drugs:

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

Veroklast (Zoledronic acid; ATC Musculoskeletal system); sales amounted to RUR 19.0 million;

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

Vero-Bleomycin (Bleomycin; ATC Antineoplastic and immunomodulating agents); sales amounted to RUR 14.6 million;

Vero-vancomycin (Vancomycine; ATC Antiinfectives for systemic use); new dosage — 1000mg № 1; sales amounted to RUR 13.0 million;

Veromistin Silver (Myramistin; Remedy for intimate hygiene); sales amounted to RUR 3.0 million;

Veromistin Daily (Myramistin; Remedy for hygienic treatment of the skin of hands and feet); sales amounted to RUR 2.3 million;

GeptorDaily (Ademetionine; ATC Alimentary tract and metabolism); new drug formulation — tablets 200mg № 30; sales amounted to RUR 2.1 million;

Veromistin Flores (Myramistin; Remedy for oral hygiene); sales amounted to RUR 2.1 million;

Betaver (Betahistine; ATC Nervous system); new dosage — tabl 24mg № 60; sales amounted to RUR 0.7 million;

Vero-Anastrazole (Anastrazole; ATC Antineoplastic and immunomodulating agents); sales amounted to RUR 0.6 million;

Vero-Ribavirin (Ribavirin; ATC Antiinfectives for systemic use); new drug formulation — capsules 200mg № 12; sales amounted to RUR 0.3 million.

New drugs registration

For 9M 2010, Veropharm received registration for the new drugs by ATC-group:

Aromeston (Exemestane; 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, 16 more drugs are currently at different stages of the registration process.

Debt

At the end of the first nine months of 2010 Veropharm’s debt amounted to RUR 821.3 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