PHARMSTANDARD – LEADING RUSSIAN PHARMACEUTICAL COMPANY
Conference call: 2010 and 1Q2011 Sales Results (28.04.11)
Sales Results Presentation 2010(audited) and 1Q2011(non-audited)
Pharmstandard at a Glance 2010Y Leading domestic pharmaceutical company in Russia (measured by sales) for 2010
Market
•
№2 Company overall in Russian pharmaceutical market , (Market Share of 4.2%)
•
№1 Company among domestic pharmaceutical companies, (Market Share of 18,6%)
Modern and efficient manufacturing facilities
Production
•
3 pharmaceutical production sites and 1 medical equipment and disposables plant
•
Russian standards compliant facilities & 6 lines on Kursk are EU GMP compliant
•
More than 250 pharmaceutical products, 98 are included in the VED¹ list, 50.5% of the organic sales.
•
Capacity – more then 1,3 billion packs per year
Experienced sales force & Market leading brands
Sales &Marketing
•
647 units in sales force
•
2 products in Top best selling brands in Retail market (Arbidol №1, Pentalgin № 7).
•
Launched 12 new products
Industry leading growth and profitability •
Total sales of the Company in 2010 grew by 23.2% to RUR 29,686.6 mln (RUR 24,095.4 mln in 2009)
•
Organic sales (with out TPP) of the Company grew by 10% to RUR 19,792.8 mln (RUR 17.939 mln in 2009)
Financials •
Gross Profit grew by 10,7% to RUR 12,985.8 mln
•
EBITDA achieved 32.6% of Sales or RUR 9,685.2 mln
¹The list of vital and essential drugs 2009 Business & Financial Conference call: 2010 andResults 1Q2011Presentation Sales Results (28.04.11)
2
Achievements 2010/2011 2010 • OJSC «Pharmstandard» won in the 'Pharmaceutical Industry' nomination category of the national business award competition 'Company of the Year 2010'.¹ •
OJSC «Pharmstandard» launched 12 new products
•
OJSC «Pharmstandard» acquired 100% of the shares of CJSC «Vindexpharm». CJSC «Vindexpharm» owns the Acipol® trademark.
•
OJSC «Pharmstandard» registered retail prices for 98 pharmaceuticals produced by the company (taking into account all forms and dosages) included in the Vital and Essential Pharmaceuticals (VEP).
•
OJSC «Pharmstandard» and State Corporation «ROSTEKHNOLOGII» signed a co-operation agreement.
•
OJSC «Pharmstandard» and «Johnson & Johnson» LLC entered into mutual agreement and successfully realized the project to localize secondary packaging of the product Velcade® (INN Bortezomib) on the Company`s production facility OJSC «Pharmstandard-Ufavita».
2011 • OJSC «Pharmstandard-Leksredstva» announced an offer to purchase up to 1,850 of OJSC «Pharmstandard» shares at RUR 3000 per ordinary share. •
OJSC «Pharmstandard» announced its purchase of 55% of shares in PJSC «Biolek». Conference call: 2010 and 1Q2011 Sales Results (28.04.11)
2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11) Source: Company data
3
Companies on pharm market in Russian Market share 2010 - Retail Segment
Market Share 2010– Total Market SANOFIAVENTIS 5.2% (4.7%)
PHARMSTANDARD 4.2% (4.6%)
SANOFIAVENTIS 5.2% (4.7%)
PHARMSTANDARD 5.1% (5.7%) BERLIN-CH/ MENARINI 3.8% (3.7%)
NOVARTIS 4.0% (4.1%) BAYER HEALTHCARE 3.4% (3.7%)
BAYER HEALTHCARE 3.8% (3.7%)
BERLIN-CH/ MENARINI 3.2% (3.1%)
SANDOZ 3.4% (3.2%)
TEVA PHARM. LTD. 3.1% (3.1%)
GEDEON RICHTER 3.1% (3.1%)
SANDOZ 2.9% (2.8%)
NYCOMED 2.8% (2.6%)
OTHER 65.9% (66.0%)
NYCOMED 3.1% (2.8%) OTHER 64.2% (64.5%)
ROCHE 2.7% (2.8%)
GEDEON RICHTER 2.6% (2.7%)
№2 among all company in Russia overall №2 in Retail segment Conference call: 2010 Results and 1Q2011 Sales Results (28.04.11) 2009 Business & Financial Presentation Source: DATA Market Research Center PHARMEXPERT 2010
TEVA PHARM. LTD. 2.8% (2.8%) SERVIER 2.7% (2.8%)
NOVARTIS 2.7% (3.0%)
4
2010 Financial Results
Conference call: 2010 and 1Q2011 Sales Results (28.04.11)
2010 Sales Structure
Pharmaceutical products
Medical Equipment
97.9% of 2010 sales
2.1% of 2010 sales
Company’s own products
3rd parties products
65.9% of pharma sales
34.1% of pharma sales
OTC
Rx
81.3% of sales
17.2% of sales
Therapeutic focus: Analgesics Cough & cold Vitamins Anti-viral Anti-fungal
Product portfolio includes: Coronary Therapy Acid pump inhibitors Nitrites & nitrates ACE inhibitors Alimentary tract metabolism
5.0% growth
Product portfolio includes: Velcade Coagil Mildronate Presista Pulmozyme IRS-19 & Imudon Others
40.9% growth
60.7% growth
23.2% revenue growth in 2010 11.1% pharma revenue organic* growth for 2010 2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11) Source: Company data, IFRS FS
* – excluding Velcade, Coagil, Mildronate, Presista, Pulmozyme, IRS-19 & Imudon, other TPP products.
6
7 Years of Substantial Growth Gross Profit, RUR mln
Revenue, RUR mln CAGR - 40%
30 000
23%
11% 12 986
CAGR - 40%
29 687
12 000 25 000
68%
34%
24 095
20 000
26% 15 000
33% 50%
10 000
44%
5 000 0
3 946
2004
14 336 11 371
4 000
8 523
84%
2 000
2006
2007
2008
2009
2010
4 942 3 178
0
2004
2005
2006
2007
2008
1% 59%
9 685
9 637
8 000
CAGR - 68%
24%
6 000
50% 4 000
4 000
89%
2005
1 000 0
2006
100%
2 000
3 255
2007
2008
2009
2010
7%
60%
3 000
4 882
2004
96%
5 000 6 049
7 164
6 852
6 000
1 720
2010
5%
7 000
8 000
583
2009
Net Profit, RUR mln
CAGR - 60%
195%
8 759
6 852
56%
1 726
10 000
0
39%
6 000
EBITDA, RUR mln
2 000
28%
8 000
5 685
2005
11 728
10 000
3 263
3 503
2007
2008
2 036
219% 320
1 019
2004
2005
2006
2009
2010
Pharmstandard demonstrates growth from 2004 to 2010 2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11) Source: Company data, IFRS FS
7
2004-2010 Revenue Breakdown, RUR mln
30 000
630
CAGR OTC - 29% CAGR RX - 35% 25 000
9 894
689
+ RUR 3 737 mln
6 156
20 000
3 294
+ RUR 956 mln
2 338 15 000
1 609 1 188
10 000
1 076 1 447 1 362
1 196 1 199 1 011 733
5 000 555
8 520
14 841
15 581
2009
2010
+ RUR 740 mln
10 381
6 032
3 347
3 902
2004
2005
0
Others
2006
Medical Equipment
2007
2008
3rd Parties
Rx (organic)
OTC
Sales in OTC segment grew by 5%, Rx segment grew by 41% Source: Company data, IFRS FS
2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11)
8
2004-2010 Revenue Breakdown by categories, RUR mln 16 000
15 581
OTC
5 000
RX
14 841 14%
14 000
4 500
14%
4 000 12 000
3 500
10 381
3 294
10 000 15%
15%
3 000
8 520 8 000
13%
2 500
6 032 6 000
86%
86%
2 338 14%
2 000
11%
4 000
3 347
1 500
85%
3 902
1 362
87%
16%
1 000
17%
83%
1 188
25%
21%
75%
79%
2006
2007
85%
13% 86%
733
89%
555
2 000
1 199
84%
500
0
40%
47% 53%
60%
2004
2005
87%
0 2004
2005
2006
OTC Non-branded generics
2007
2008
2009
OTC Branded generics
2010
RX Non-branded generics
2008
2009
2010
RX Branded generics
Source: Company data, IFRS FS
2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11)
9
Collaboration projects – 3rd parties products The sales of third party products have grown by 60.7% or RUR 3.737 million and reached RUR 9.893 million. The share of TPP in the overall structure of the Company's sales in 2010 was 33.3%.
Sales 2010
2010 ( RUR mln)
Third parties products Velcade® Coagil VII Midronate® Prezista® Pulmozym® IRS®-19, Imudon® Other 3rd parties products
% of total sales
2009 (RUR mln)
% of total sales
Growth in 2010/2009 (RUR mln)
Growth in 2010/2009 (%)
9,893.8 3,838.2 1,799.5 1,211.7 942.5 610.2 533.5
33.3% 12.9% 6.1% 4.1% 3.2% 2.1% 1.8%
6,156.4 3,661.9 0.0 1,194.3 0.0 143.9 645.6
25.5% 15.2% 0.0 5.0% 0.0% 0.6% 2.7%
3,737.5 176.3 1,799.5 17.3 942.5 466.4 -112.1
60.7% 4.8% _ 1.5% _ 324.1% -17.4%
958.3
3.2%
510.6
2.1%
447.7
87.7%
There are different types of third party products: Manufacturing of TPP at the company's facilities Velcade® (Johnson & Johnson), IRS 19® and Imudon® (Abbott Products). The Company's revenue from sales of these products in 2010 amounted to RUR 4.372 million.
Distribution, promotion of TPP Mildronate® (Grindex), Prezista® (Janssen-Cilag) and other products. The revenue from sales of these products in 2010 amounted to RUR 2.170 million.
Participation with TPP in open auctions Coagil VII (CJSC «GENURIUM»\CJSC «Lekko»), Pulmozyme® (Hoffmann-La Roche) and other products. The revenue from sales of these products in 2010 amounted to RUR 3.352 million. 2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11)
10
Strong Set of Margins Pharmstandard keeps margins high from 2004 to 2010
80% 80% 67% 56%
60%
58%
60%
59% 57%
43%
44%
47%
40%
43%
40%
58%
60%
61% 49%
43%
44%
48%
38%
56%
60%
38%
42%
40%
44%
30%
33%
30% 31% 20%
29% 15%
24%
34%
29%
15%
24%
27%
24%
28%
24%
18%
18%
*
8%
8% 0%
0% 2004
20%
2005
2006
2007
Gross Profit Net Profit
2008 2009 2010 organic organic organic EBITDA
2004
2005
2006
2007
Gross Profit Net Profit
2008
2009
2010
EBITDA
* excluding sales of third parties products
*
EBITDA is defined as profit for the accounting period before finance costs, income tax expense and depreciation and amortization and excluding foreign exchange gain or loss
** ORGANIC – excluding Velcade, Coagil, Mildronate, Presista, Pulmozyme, IRS-19& Imudon, others 3rd parties products.
2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11) Source: Company data, IFRS FS
11
Margins EBITDA
Gross Profit
14 000
70%
14 000
70%
60%
12 000
60%
50%
10 000
59% 12 000
57% 11 728
10 000
12 986
11 364
10 544
48%
44%
49%
40%
8 000
50% 9 637
8 000
8 674 40%
43%
9 685 40%
8 440
6 000
30%
6 000
4 000
20%
4 000
20%
2 000
10%
2 000
10%
0%
0 2009 organic
2009
2010 organic
2010
33%
30%
0%
0 2009 organic
2009
2010 organic
2010
Gross profit growth organic 8%, total business 11% EBITDA growth organic -3%, total business 1%) 2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11) Source: Company data, IFRS FS
12
Competitive Cost Structure General and Administration Costs
Selling and Distribution Costs
15%
1 200
20%
4 000
1 000
14%
13% 10%
10% 10%
3 000
663 596 2 000
467 506
692
800
341
5%
826
0%
275
199
6%
-5%
400
4%
4%
1355
1366
1410
1427
200
-20% 2009 organic
Marketing
2009
Labour costs
436
436
-15%
0 2010 organic
2010
Other
As % of sales
551
3%
-10%
1 000
9%
198 600
512 586
12%
15%
551
3% 3%
0%
0 2009 organic
2009
Labour costs
2010 organic
Other
2010
As % of sales
Pharmstandard held SG&A costs less 13% of Total Sales 2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11) Source: Company data, IFRS FS
13
Attractive Profitability Net Profit dynamic
40%
8 000 34%
35%
31% 28%
30% 7 164
7 000 6 852
6 000
24%
20% 15%
6 167
6 082
25%
10% 5% 0%
5 000 2009 organic
2009
2010 organic
2010
Net profit of Total Sales 24%, organically 31% Effective tax rate in 2010 22%
Source: Company data, IFRS FS
2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11)
14
Consolidated Balance Sheet and CAPEX
IFRS basis mln RUR Non-current assets Trade receivables* Cash and cash equivalents Other assets Total assets Total equity Trade and other payables and accruals** Long-term borrowings and loans Current portion of long-term borrowings Other liabilities Total liabilities Total equity and liabilities
Capital Expenditure (PPE*) mln RUR 2010 10,854 12,376 3,906 12,282 39,419 26,876 10,747 0 396 1,400 12,543 39,419
2009 9,848 9,289 2,798 4,288 26,223 19,696 3,906 392 391 1,838 6,527 26,223
1,200 1 050 1,000
800
224* 889
890
687
600
661
827 400 361 200
*incl. trade receivables for third parties products (3 602 min RUR) **incl. advances received from the Ministry of health and social department (state tenders) in 2010 (1 337 mln RUR) and Payables for third parties products procurement ( 3 630 mln RUR).
Debt summary
0 2005
Syndicated borrowing organized by Citi in 2006 for Masterlek acquisitioin Facility A: fully paid Facility B: RUR 392mln (maturity Dec-2011)
2006
2007
2008
2009
2010
CapEx 2005-2010 totals to 4 540 mln RUR * expenditures in joint venture ÂŤNTS+Âť in 2010
* Interest rate for facility A was initially established as 3 month LIBOR plus margin of 1.50% p.a. Interest rate for facility B was initially established as 3 month LIBOR plus margin of 1.90% p.a. Source: Company data, IFRS FS
2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11)
15
Year 2010 sales brake down
Conference call: 2010 and 1Q2011 Sales Results (28.04.11)
Divisional Sales Breakdown 2010-2009 SALES STRUCTURE PHARMACEUTICAL PRODUCTS
2010, mln RUR % of Total sales 2009, mln RUR % of Total sales
Change 2010/2009, mln RUR
Change 2010/2009, %
29 056.1
97.9%
23 406.7
97.1%
5 649.5
24.1%
OTC BRANDED NON-BRANDED PRESCRIPTION BRANDED NON-BRANDED
18 875.3 15 581.1 13 339.0 2 242.1 3 294.2 2 806.9 487.3
63.6% 52.5% 44.9% 7.6% 11.1% 9.5% 1.6%
17 178.8 14 840.7 12 709.9 2 130.8 2 338.1 2 022.4 315.7
71.3% 61.6% 52.7% 8.8% 9.7% 8.4% 1.3%
1 696.5 740.4 629.0 111.4 956.1 784.5 171.5
9.9% 5.0% 4.9% 5.2% 40.9% 38.8% 54.3%
3rd parties products
9 893.8
33.3%
6 156.4
25.5%
3 737.5
60.7%
Velcade (Janssen-Cilag)
3 838.2
12.9%
3 661.9
15.2%
176.3
4.8%
Coagil
1 799.5
6.1%
0.0
0.0%
1 799.5
-
Mildronat (Grindeks)
1 211.7
4.1%
1 194.3
5.0%
17.3
1.5%
Presista
942.5
3.2%
0.0
0.0%
942.5
-
Pulmozyme
610.2
2.1%
143.9
0.6%
466.4
324.1%
IRS19速 & Imudon (Solvay)
533.5
1.8%
645.6
2.7%
-112.1
-17.4%
Other 3rd parties
958.3
3.2%
510.6
2.1%
447.7
87.7%
287.0
1.0%
71.5
0.3%
215.5
301.2%
630.5
2.1%
688.7
2.9%
-58.2
-8.5%
29 686.6
100.0%
24 095.4
100.0%
5 591.2
23.2%
PHS own
OTHER PHARMACEUTICAL SALES MEDICAL EQUIPMENT & DISPOSABLES TOTAL PHARMSTANDARD
2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11) Source: Company data, IFRS FS
17
Best Selling Brands 2010 (excluding 3rd parties products) 2010 №
BRAND
Volume (mln packs)
2009
Sales (mln RUR)
Volume 10/09
% of total Volume Sales (mln % of total Change sales (mln packs) RUR) sales
%
Change
%
1 Arbidol
42.640
5 589
29.6%
45.736
5 503
32.1%
-3.095
2 Pentalgin
38.124
1 988
10.5%
40.608
2 100
12.2%
-2.484 -6.1%
3 Complivit
14.903
1 228
6.5%
16.818
1 188
6.9%
-1.915 -11.4%
4 Therpincod
7.470
1 047
5.5%
6.442
889
5.2%
1.028
16.0%
158 17.8%
5 Phosphogliv
2.083
699
3.7%
1.721
596
3.5%
0.362
21.0%
103 17.3%
6 Codelac
8.317
692
3.7%
8.386
752
4.4%
-0.069
-0.8%
-61
-8.1%
7 Flucostat*
5.609
653
3.5%
5.534
661
3.9%
0.075
1.3%
-8
-1.2%
8 Afobazol
4.093
607
3.2%
3.649
531
3.1%
0.444
12.2%
9 Amixin**
1.367
564
3.0%
1.322
558
3.3%
0.044
3.4%
10 Rastan
0.336
439
2.3%
0.153
186
1.1%
0.182 118.9%
75.6%
TOP 10 total
124.941
13 507
71.6%
130.369
12 964
Other brands
540.412
5 368
28.4%
577.233
TOTAL SALES
665.353
18 875
100.0%
707.602
-6.8%
Sales 10/09
87
1.6%
-111
-5.3%
40
3.4%
76 14.4% 6
1.0%
254 136.4%
-5.429
-4.2%
544
4.2%
4 190
24.4% -36.821
-6.4%
1 178 28.1%
17 153
100.0% -42.249
-6.0%
1 722 10.0%
* Flucostat (tablets&solution for Injection) ** Amixin(№125&№60)
Top 10 Best selling Brands demonstrated growth of 4.2% in value
2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11)
18
Top 10 OTC Brands 2010 (excluding 3rd parties products) 2010 â„–
BRAND
Volume (mln packs)
2009
Sales (mln RUR)
Volume 10/09
% of total Volume (mln Sales (mln % of total Change sales packs) RUR) sales
%
Sales 10/09 Change
%
1 Arbidol
42.640
5 589
35.9%
45.736
5 503
37.1%
-3.095
-6.8%
87
1.6%
2 Pentalgin
38.124
1 988
12.8%
40.608
2 100
14.2%
-2.484
-6.1%
-111
-5.3%
3 Complivit
14.903
1 228
7.9%
16.818
1 188
8.0%
-1.915 -11.4%
40
3.4%
4 Therpincod
7.470
1 047
6.7%
6.442
889
6.0%
1.028
16.0%
158
17.8%
5 Codelac
8.317
692
4.4%
8.386
752
5.1%
-0.069
-0.8%
-61
-8.1%
6 Flucostat*
5.609
653
4.2%
5.458
649
4.4%
0.151
2.8%
4
0.7%
7 Afobazol
4.093
607
3.9%
3.649
531
3.6%
0.444
12.2%
76
14.4%
8 Amixin**
1.208
514
3.3%
1.162
507
3.4%
0.046
3.9%
6
1.3%
9 Coal Activated
71.233
247
1.6%
56.587
180
1.2%
14.646
25.9%
68
37.7%
10 Corvalol
41.986
230
1.5%
46.298
222
1.5%
-4.312
-9.3%
7
3.4%
TOP 10 total
235.583
12 796
82.1%
231.144
12 521
84.5%
4.439
1.9%
275
2.2%
Other brands
376.167
2 785
17.9%
432.936
2 294
15.5%
TOTAL SALES
611.750
15 581
100.0%
664.080
14 815
100.0%
-56.769 -13.1%
491 21.4%
-52.330
766
-7.9%
5.2%
* Flucostat (tablets only) ** Amixin (only â„–125)
2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11)
19
Top 10 Rx Brands 2010 (excluding 3rd parties products) 2010
â„–
BRAND
Volume (mln packs)
2009
Sales (mln RUR)
Volume 10/09
% of total Volume (mln Sales (mln % of total Change sales packs) RUR) sales
1 Phosphogliv
2.083
699
21.2%
1.721
596
25.5%
2 Rastan
0.336
439
13.3%
0.153
186
3 Biosulin
0.731
361
11.0%
0.442
4 Combilipen
2.919
279
8.5%
5 Cocarboxylase
4.402
216
6 Picamilon
3.959
7 Cyclodol
0.362
%
Sales 10/09
Change
%
21.0%
103 17.3%
8.0%
0.182 118.9%
254 136.4%
211
9.0%
0.289
65.4%
150 71.4%
1.811
195
8.4%
1.108
61.2%
84 42.9%
6.5%
3.165
109
4.7%
1.237
39.1%
106 97.6%
155
4.7%
4.299
129
5.5%
-0.341
-7.9%
26 20.5%
2.730
120
3.7%
2.506
107
4.6%
0.224
9.0%
13 12.4%
8 Sulphocamfocaine
2.620
103
3.1%
1.989
69
3.0%
0.631
31.8%
34 49.3%
9 Azitrox
0.631
99
3.0%
0.655
108
4.6%
-0.023
-3.5%
-9
10 Octolipen
0.482
93
2.8%
0.149
29
1.2%
0.333 222.7%
-8.1%
64 224.1%
TOP 10 total
20.893
2 565
77.9%
16.890
1 738
74.3%
4.003
23.7%
826 47.5%
Other brands
32.710
729
22.1%
26.632
600
25.7%
6.078
22.8%
130 21.6%
TOTAL SALES
53.603
3 294
100.0%
43.522
2 338
100.0%
10.081
23.2%
956 40.9%
2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11)
20
Sales breakdown by distributors 2010 sales mln RUR
Protek
Katren
3 014; 10% SIA International
Alliance Healthcare
2 989; 10% Rosta
Moron
13 929; 47% 2 432; 8%
Profitmed
Pharmkomplekt
2 231; 8% Biotek
2 111; 7%
Average payment terms • Russia retail – up to 90 days • Export – up to 180 days
2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11) Source: Company data
411; 1%
434; 2% 535; 2%
Ministry of Health and Social Development of the Russian Federation Other distributors
1 027; 3% 573; 2%
21
Q1 2011Sales brake down
Conference call: 2010 and 1Q2011 Sales Results (28.04.11)
Q1 2011 Sales Structure
Pharmaceutical products
Medical Equipment
99.1% of Q1 2011 sales
0.9% of Q1 2011 sales
Company’s own products
3rd parties products
48.1% of pharma sales
51.9% of pharma sales
OTC
Rx
80.8% of sales
16.3% of sales
Therapeutic focus: Analgesics Cough & cold Vitamins Anti-viral Anti-fungal
Product portfolio includes: Coronary Therapy Acid pump inhibitors Nitrites & nitrates ACE inhibitors Alimentary tract metabolism
20.4% growth
Product portfolio includes: Mabtera Pulmozyme Coagil Mildronate IRS-19 & Imudon Others
11.1% growth
460.1% growth
103.8% revenue growth in Q1 2011 105.2% pharma revenue organic* growth for Q1 2011 2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11) Source: Company data, IFRS FS
* – excluding Mabtera, Pulmozyme Coagil, Mildronate, IRS-19 & Imudon, other TPP products.
23
Divisional Sales Breakdown Q1 2011 SALES STRUCTURE PHARMACEUTICAL PRODUCTS
1Q 2011, mln RUR
% of Total sales
1Q 2010, mln RUR
% of Total sales
Change 1Q 2011/1Q Change 1Q 2010, mln RUR 2011/1Q 2010, %
11 563.6
99.1%
5 635.8
98.4%
5 927.8
105.2%
5 402.3 4 494.1
46.3% 38.5%
4 548.8 3 731.6
79.4% 65.2%
853.5 762.5
18.8% 20.4%
3 938.1
33.7%
3 155.2
55.1%
782.9
24.8%
556.0
4.8%
576.4
10.1%
-20.4
-3.5%
908.2
7.8%
817.2
14.3%
91.0
11.1%
816.1
7.0%
708.2
12.4%
107.8
15.2%
92.1
0.8%
109.0
1.9%
-16.8
-15.5%
6 003.2
51.4%
1 071.9
18.7%
4 931.3
460.1%
3 852.2
33.0%
0.0
0.0%
3 852.2
-
Pulmozyme
813.4
7.0%
244.1
4.3%
569.3
233.2%
Coagil VII
602.5
5.2%
213.9
3.7%
388.6
181.6%
Mildronat (Grindeks)
263.4
2.3%
363.1
6.3%
-99.7
-27.5%
IRS19速 & Imudon (Solvay)
257.8
2.2%
122.7
2.1%
135.1
110.2%
Other 3rd parties
213.9
1.8%
128.1
2.2%
85.8
67.0%
OTHER PHARMACEUTICAL SALES
72.9
0.6%
15.1
0.3%
57.8
382.5%
Biolek (Ukraine)
85.1
0.7%
0.0
0.0%
85.1
-
106.6
0.9%
91.3
1.6%
15.3
16.7%
11 670.2
100.0%
5 727.1
100.0%
5 943.1
103.8%
PHS own OTC BRANDED NON-BRANDED PRESCRIPTION BRANDED NON-BRANDED 3rd parties products Mabtera
MEDICAL EQUIPMENT & DISPOSABLES TOTAL PHARMSTANDARD
2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11) Source: Company data, IFRS FS
24
Best Selling Brands Q1 2011 (excluding 3rd parties products) 1Q 2011 №
BRAND
1Q 2010
Volume 11/10
Volume Sales (mln % of total Volume Sales (mln % of total Change (mln packs) RUR) sales (mln packs) RUR) sales
1 Arbidol
9.143
1 524
28.2%
11.878
1 377
30.3%
2 Pentalgin
9.778
557
10.3%
7.975
448
9.8%
3 Complivit
6.329
519
9.6%
4.188
362
4 Phosphogliv
0.668
249
4.6%
0.529
5 Afobazol
1.421
222
4.1%
6 Flucostat *
1.704
212
7 Codelac
2.362
8 Therpincod
% 10.7%
1.803 22.6%
109
24.3%
8.0%
2.141
51.1%
156
43.2%
184
4.0%
0.139
26.3%
65
35.3%
0.915
143
3.1%
0.506
55.3%
79
55.5%
3.9%
1.500
185
4.1%
0.204
13.6%
28
14.9%
209
3.9%
0.904
79
1.7%
1.458
161.3%
130
163.9%
1.320
207
3.8%
1.495
218
4.8%
-0.174
-11.7%
-11
-4.9%
9 Amixin **
0.346
150
2.8%
0.469
193
4.2%
-0.123
-26.2%
-43
-22.4%
10 Rastan
0.082
102 3
1.9%
0.096
127
2.8%
-0.014
-14.7%
-25
-19.8%
73.1%
29.948
3 315
72.9%
3.206
10.7%
635
19.2%
26.9%
131.885
1 233
27.1%
-4.901
-3.7%
218
17.7%
100.0%
161.833
4 549
100.0%
-1.694
-1.0%
854
18.8%
33.154 951
-23.0%
Change 148
TOP 10 total
-2.734
%
Sales 11/10
1 Other brands
126.985 452 5
TOTAL SALES
160.139 402
* Flucostat includes all forms (tablets & injections) ** Amixin includes (№125 & №60) 2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11)
25
Best Selling OTC Brands Q1 2011 (excluding 3rd parties products) 1Q 2011 â„–
BRAND
Volume (mln packs)
1Q 2010
Volume 11/10
Sales (mln % of total Volume Sales (mln % of total RUR) sales (mln packs) RUR) sales
Change
%
Sales 11/10 Change
%
1 Arbidol
9.143
1 524
33.9%
11.878
1 377
36.9%
-2.734
-23.0%
148
10.7%
2 Pentalgin
9.778
557
12.4%
7.975
448
12.0%
1.803
22.6%
109
24.3%
3 Complivit
6.329
519
11.5%
4.188
362
9.7%
2.141
51.1%
156
43.2%
4 Afobazol
1.421
222
4.9%
0.915
143
3.8%
0.506
55.3%
79
55.5%
5 Flucostat*
1.704
212
4.7%
1.500
185
5.0%
0.204
13.6%
27
14.9%
6 Codelac
2.362
209
4.6%
0.904
79
2.1%
1.458
161.3%
130
163.9%
7 Therpincod
1.320
207
4.6%
1.495
218
5.8%
-0.174
-11.7%
-11
-4.9%
8 Amixin**
0.346
150
3.3%
0.381
165
4.4%
-0.035
-9.2%
-15
-9.0%
9 Acipol
0.682
90
2.0%
0.000
0
0.0%
0.682
10.091
64
1.4%
13.664
72
1.9%
-3.572
-26.1%
-8
-11.2%
TOP 10 total
43.178
3 754
83.5%
42.899
3 048
81.7%
0.278
0.6%
706
23.2%
Other brands
105.196
740
16.5%
107.045
684
18.3%
-1.849
-1.7%
56
8.2%
TOTAL SALES
148.373
4 494
100.0%
149.944
3 732
100.0%
-1.571
-1.0%
763
20.4%
10 Corvalol
-
90
-
* Flucostat only tabs ** Amixin only â„–125
2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11)
26
Best Selling Rx Brands Q1 2011 (excluding 3rd parties products) 1Q 2011 â„–
BRAND
1Q 2010
Volume 11/10
Volume Sales (mln % of total Volume Sales (mln % of total Change (mln packs) RUR) sales (mln packs) RUR) sales
%
Sales 11/10 Change
%
1 Phosphogliv
0.668
249
27.4%
0.529
184
22.5%
0.139
26.3%
65
35.3%
2 Rastan
0.082
102
11.2%
0.096
127
15.5%
-0.014
-14.7%
-25
-19.8%
3 Combilipen
0.853
87
9.6%
0.555
57
7.0%
0.298
53.6%
30
53.0%
4 Biosulin
0.155
86
9.5%
0.163
85
10.4%
-0.008
-5.0%
2
2.0%
5 Azitrox
0.275
48
5.3%
0.075
13
1.6%
0.200
265.7%
35
273.8%
6 Picamilon
1.105
47
5.2%
1.023
40
4.9%
0.082
8.0%
7
16.8%
7 Octolipen
0.205
42
4.6%
0.078
16
2.0%
0.126
161.2%
26
156.9%
8 Cyclodol
0.530
24
2.7%
0.628
31
3.8%
-0.098
-15.6%
-6
-20.7%
9 Cocarboxylase
0.470
23
2.6%
1.228
50
6.1%
-0.757
-61.7%
-26
-53.1%
10 Liptonorm
0.096
22
2.4%
0.063
14
1.7%
0.033
51.5%
8
57.7%
TOP 10 total
4.440 731
80.5%
4.439
616
75.4%
0.001
0.0%
115
18.6%
Other brands
7.326 177
19.5%
7.450
201
24.6%
-0.124
-1.7%
-24
-11.9%
100.0%
11.889
100.0%
-0.124
-1.0%
91
11.1%
TOTAL SALES
11.765
908
2009 Business & 2010 Financial Conference call: and Results 1Q2011Presentation Sales Results (28.04.11)
817
27
Disclaimer and Confidentiality Requirements This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of OJSC Pharmstandard (the “Company�) or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This presentation may contain 'forward-looking statements'. These statements may include the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning. All statements other than statements of historical facts, possibly contained in this presentation, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's projects and services) are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from results, performance or achievements expressed or implied by such forward-looking statements. Risks and uncertainties include, without limitation, general industry conditions and competition; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; and trends toward health care cost containment. Such forwardlooking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this presentation. The Company does not undertake to update any forward-looking statements as a result of new information or future events or developments. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. All information, unless expressly specified herein, is from Company data.
2009 Business & Financial Conference call: 2010 andResults 1Q2011Presentation Sales Results (28.04.11)
28
Contacts
JSC Pharmstandard Likhachevsky drive, 5 ÂŤBÂť Moscow region, Dolgoprudny, Russia, 141700. Tel/Fax: (495) 970-0030/32 IR ex.2416 www.pharmstd.com
2009 Business & Financial Conference call: 2010 andResults 1Q2011Presentation Sales Results (28.04.11)
29