20.05.2011

MAY 20, 2011, MOSCOW — OJSC «VEROPHARM» [RTS:VRPH, MICEX:VFRM] announces preliminary data and operational performance indicators for the 1st quarter 2011 according to the management accounts.

In the 1st quarter of 2011 sales of Veropharm’s finished goods were up by 49.5% in comparison with 1Q2010 and amounted RUR 1,440 mln.[1]

Group of pharmaceutical products

  • Rx drugs sales amounted to RUR 1,019.1 million, a 70,5% increase in comparison with 1Q2010. The Rx drugs sales accounted for 71% of total finished goods sales.[2]
  • OTC drugs sales amounted to RUR 192,9 million, a 28,4% increase in comparison with 1Q2010. The share of OTC drugs makes 13% of total finished goods sales.
  • Traditional drug sales amounted to RUR 6.7 million, which represents a 48,1% decrease as compared to 1Q2010. The share of traditional drugs in total sales decreased to 0.5%

Group of non-pharmaceutical products

  • Adhesive bandages and cosmetic products sales came to RUR 221.8 million, a 9,7% increase in comparison with 1Q2010. The share of adhesive bandages and cosmetic products in total finished goods sales of the Company was 15%.

Veropharm sales as part of the Federal Reimbursement Program (FRP) came to RUR 54.7 million, accounting for 3,8% of the Company’s total finished goods sales.[2]

In 1Q2011  sales in Russian Federation provide 98% of the Ñompany’s sales. In 1Q2011 exports accounted for 2% of the Company’s total finished goods sales compared to 4% in 1Q2010.

Rx drugs segment

Total sales of the five most popular prescription drugs by the results in 1Q2011 amounted to RUR 377.3 million, or 37% of sales in the prescription drugs segment and 26% of the Company’s total finished goods sales[2].

The five top-selling Rx drugs in 1Q2011 results include:

  • Geptor (Ademetionine; ATC[3] «Digestive tract and metabolism»); sales growth in comparison with 1Q2011amounted 92%;  9% of sales in the prescription drugs segment;
  • Irunine (Itraconazole; ATC «General anti-infectives systemic»); sales growth in comparison with 1Q2011 amounted 367%;  9% of sales in the prescription drugs segment;
  • Cerepro (Holina Alfostserat; ATC «Central nervous system»); sales growth in comparison with 1Q2011 amounted 508%;  8% of sales in the prescription drugs segment;
  • Amigrenin (Sumatriptan; ATC «Central nervous system»); sales growth in comparison with 1Q2011 amounted 803%;  7% of sales in the prescription drugs segment;
  • Paclitaxel-LENS (Paclitaxel; ATC «Antineoplastic and immunomodulating agents»); 4% of sales in the prescription drugs segment.

OTC drugs segment

Total sales of the five products in the OTC drugs segment amounted to 98% of sales in the OTC drugs segment.

  • Xilen (Xylometazoline; ATC «Respiratory system»); sales growth in comparison with 1Q2011 amounted 8%; 39% of sales in the OTC drugs segment;
  • Slabilen (Sodium picosulfate;  ATC «Alimentary tract and metabolism»); sales growth in comparison with 1Q2011amounted 64%;  36% of sales in the OTC drugs segment;
  • Motilak (Domperidone; ATC «Alimentary tract and metabolism»); sales growth in comparison with 1Q2011 amounted 4%; 15% of sales in the OTC drugs segment;
  • Vitasharm and Vitatress (ATC «Vitamins»); sales growth in comparison with 1Q2011amounted 637%; 7% of sales in the OTC drugs segment;
  • Ginecotex vaginal tablets (Benzalkonium chloride; ATC «Urinary system&sex hormone»); 1% of sales in the OTC drugs segment.

Traditional drugs segment

In the 1st quarter of 2011portfolio of traditional drugs includes 6products:

  • Vero-Dexamethasone (Dexamethasone; ATC «Hormonal drugs»); 47% of sales in the traditional drugs segment;
  • Vero-Ciprofloxacin (Ciprofloxacin; ATC «General anti-infective systemic»); 17% of sales in the traditional drugs segment;
  • Pyridoxine  hydrochloride (Pyridoxine; ATC «Alimentary tract and metabolism»); 14% of sales in the traditional drugs segment;
  • Fluconazole (Fluconazole; ATC «General anti-infective systemic»); 13% of sales in the traditional drugs segment;
  • Vero-Loperamide (Loperamide; ATC «Alimentary tract and metabolism»); 8% of sales in the traditional drugs segment.
  • Paracetamol (Paracetamol; ATC «Nervous system»); 1% of sales in the traditional drugs segment;

Adhesive bandages and cosmetic products segment

In 1Q2011 segment of Adhesive bandages and Cosmetic products had the following structure:

  • Conventional bacterial adhesive bandages; 39% of sales in segment in 1Q2011;
  • Conventional reel adhesive bandages; 25% of sales in the segment in 1Q2011;
  • Therapeutic patches — pepper plasters, 19% of sales in the segment in 1Q2011;
  • Therapeutic patches — corn plasters, 16% of sales in the segment in 1Q2011;
  • Cosmetic products (Veromistin Silver, Daily, Flores); 1% of sales in the segment in 1Q2011.

During the 1st quarter of 2011 Veropharm launched production and sales of the following new drugs:

  • Vero-Netilmicin (Netilmicin; ATC «Antiinfectives for systemic use»);
  • Vero-Asparaginase (Asparaginase; ÀÒÑ «Antineoplastic and immunomodulating agents»); new dosage – 10 000 ME ¹ 10;
  • Veroklast (Zoledronic acid; ATC «Musculoskeletal system»); new dosage – 4mg/5 ml 5ml ¹ 1;
  • Veromistin Silver (Myramistin; Remedy for intimate hygiene); new dosage – 50ml ¹ 1;
  • Veromistin Daily (Myramistin; Remedy for hygienic treatment of the skin of hands and feet); new dosage – 50ml ¹ 1;
  • Veromistin Flores (Myramistin; Remedy for oral hygiene); new dosage – 50ml ¹ 1.

In the 1st quarter of 2011 received a registration certificate to thebandage Uniplast ointment.

Additionally, 12 drugs are currently at different stages of the registration process.

At the end of 1st quarter of 2011 Veropharm’s debt decreased by 57% to RUR 440.9 million, that represents less than 20% of net assets.

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

[2]  % — percent of finished goods sales

[3]  ATC – anatomico-therapeutico-chemical group