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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)

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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


/2010_fy_results_presentation_2010.04.28