Transcript Оценка стоимости ГК Фармстандарт

Pharmstandard Roadshow Presentation
1H 2007 results
September 2007
0
Roadshow Presentation
Roadshow
Presentation
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1
Roadshow Presentation
1. Company Overview
Dr. Igor Krylov, CEO
Roadshow Presentation
Our Strategy
 Promote our market-leading brands to drive sales growth and profitability
 Launch new products on a regular basis
 Expand sales and marketing effort
 Continue to actively control costs
 Grow through acquisitions
 Exploit opportunities from Federal Reimbursement Programme (FRP) as they arise
3
3
Roadshow Presentation
Building a top-3 pharmaceutical company in Russia
Promote our market-leading brands to drive sales growth and
profitability
Leading domestic pharma trademarks by sales value in 2006
Ranking in 1H
2007
Ranking in 1H
2006
Arbidol
1
1
Mexidol
2
3
Pentalgin
3
2
Sodium Chlorid
4
5
Complivit
5
10
Viferon
6
9
Terpincod
7
7
Howthorn
8
4
Cephazolin
9
11
Flukostat
10
13
Glucose
11
17
Phenotropil
12
8
Cortexin
13
26
Hondrolon
14
48
Cyclopheron
15
19
Codelac
16
24
Corvalol
17
18
Bifidumbacterin
18
14
Ascorbic acid
19
20
Miramistin
20
38
Trademark
Exclusively produced by Pharmstandard
Produced by Pharmstandard
Source:
Pharmexpert. Based on consumer prices, Rx and OTC products
Note:
1 Masterlek Brands
4
Roadshow Presentation
 6 leading brands
 “Top of mind” position
with consumers
 Significant brand loyalty
Rx
OTC
Launch new products on a regular basis
Product
ATC
Recent product launches
Maxicold ®
R05A0-Cold Preparations Without AntiInfectives
Passifit ®
N05B5-Herbal Hypnotics/Sedatives
OTC
Market
value
USD mln
142.0
Coldrex, Fervex, Teraflu
0.3
125.0
Novo-Passit, Persen
Immunal, Immunorm
L03A0-Immunostimulating Agents Excluding
Interferons
0.1
85.0
Biosulin ®
Rastan ®
Artrozan ®
A10C2-Human Insulins And Analogues
H04C0-Growth Hormones
M01A1-Anti-Rheumatics, Non-Steroidal Plain
2.1
1.7
0.2
162.0
18.0
199.0
®
Benfolipen
®
Combilipen
®
Ondasol
Carditrim
®
5
Pharmexpert,
Roadshow Presentation
Humulin, Protaphan, Actrapid
Genotropin, Saizen, Humatrope
Movalis, Voltaren, Diclofenac
45.0
Calcium D3, Calcium
A11D (tablets) – vitamin B1 and combinations
15.0
Milgamma, Neuromultivit
A11D (injections) – vitamin B1 and
combinations
25.0
Milgamma, Thiamine Chloride
A04A1 – serotonin antagonist
antiemetics/antinauseants
C01D0 – coronary therapy excluding calcium
antagonists and nitrites
16.0
Kytril, Zofran, Navoban
111.0
New products sales achieved RUR 127 mln or 3.4% from
total Pharmaceutical sales in 1H 2007
Source:
Key Market brands
0.5
Immunex ®
Recent product approvals
® A12A – calcium products
Complivit Ca D3
Rx
Sales value
1H 2007
USD mln
Preductal
Expand sales and marketing effort
HQ Sales and marketing
 All sales reps have medical
education/work experience
 Incentivised sales force—up to 33%
bonus of annual salary
 In 2007 looking to:
– Increase “feet on the street” to
over 350 sales people
– Further specialise sales force by
OTC
Rx
(incl. ENDO-Team)
National manager
1 manager
National manager
2 managers
Regional manager
20 managers
Regional manager
29 managers
OTC sales force
(131)
Rx sales force
(157)
therapeutic area
– Electronic Territory Management
System (ETMS) system
improving efficiency
3
Source:
Note:
6
Company
1 As of 30 June 2007
Roadshow Presentation
Experienced sales force up to 340 sales persons1
Real time data - ETMS
pharma market
Real time data - ETMS
 Covers 75% of the Russian
Diversified Product Portfolio in 1H 2007
Pharmaceuticals
Medical Devices
85% of 1H 2007 sales
15% of 1H 2007 sales
OTC
70% of 1H 2007 sales
 Therapeutic focus:
 Analgesics
 Cough & cold
 Vitamins
 Anti-viral
 Anti-fungal
63% growth
7
Source:
Company
Note:
1 Includes Other sales
Roadshow Presentation
Rx1
15% of 1H 2007 sales
 Product portfolio includes:
 Acid pump inhibitors
 Nitrites & nitrates
 ACE inhibitors
 Alimentary tract
metabolism
54% growth
52% revenue growth in 1H 2007
 Product portfolio includes:
 Sterilisers
 Distillers
 Medical disposables
18% growth
#3 pharmaceutical company on Russian market
Market Share of Top-10 Companies in the
Russian Pharma Market (% 1H 2007 value)1
Sanofi-Aventis
4.5%
Novartis
4.2%
Pharmstandard
3.7%
Market Share of Domestic Pharmaceutical
Producers (% 2006 value)1
Pharmstandard
16.8%
BerlinCh/Menarini
2.9%
Otechestvennie
Lekarstva
5.4%
Pharm-Centr
4.3%
Bayer Schering
Pharma
2.9%
Sandoz
2.8%
Gedeon Richter
2.7%
Pfizer
2.5%
Other
68.8%
Servier
2.5%
3
3
Source:
Pharmexpert
Notes:
1 Based on sales in wholesale prices
8
Roadshow Presentation
Nycomed
2.5%
Stada
Arzneimittel Ag
4.2%
Other
51.4%
Materia Medika
3.6%
Microgene Npo
3.5%
Moshimpharmpr
eparaty
2.4%
Biotek
2.6%
#3 pharma company in Russia overall
#1 domestic pharma company – more than 3 times
the size of the #2 domestic player
Akrikhin
2.7%
Veropharm Zao
3.1%
A Leader in the Russian Commercial Segment
Market Share—Top 10 Companies1
Pharmstandard
4.5%
Sanofi-Aventis Berlin2
2
4.3%
Ch/Menarini
3.4%
Market Share—Top 10 Domestic Companies1
Pharmstandard
19.2%
Novartis
3.0%
Sandoz
3.0%
Gedeon Richter
2.8%
Stada Arzneimittel
Ag
Otechestvennie
4.6%
Lekarstva
4.5%
Pfizer
2.8%
Nycomed
2.8%
Materia Medika
4.3%
Microgene Npo
3.4%
Other
51.2%
Krasnogorsklexred
stva
2.7%
Bayer Schering
Pharma
2.8%
Other
67.8%
Servier
2.8%
3
Moshimpharmprep
araty
2.4%
Pharm-Centr
2.5%
Akrikhin
2.5%
PHS is #1 in commercial segment
(commercial segment is 77% of the total market)
Source:
Pharmexpert
Notes:
1 Commercial segment 2006, based on sales in wholesale prices
9
Roadshow Presentation
Veropharm Zao
2.7%
Continue to actively control costs
Pharmstandard strong margin rates:
 Gross profit remain stable at 57%,
 S&D – is constant at 17%,
 G&A – decreased by 1% to 6%,
 Net profit – remained constant at 22%,
 EBITDA margin became 38% (in 1H 2006 EBITDA was 35%).
Source:
1
2
10
Company
Pharmexpert, in wholesale prices
As at 30 June 2007
Roadshow Presentation
Pharmstandard 1H 2007 achievements
 Leading domestic pharmaceutical company in Russia (measured by sales)
– #3 pharma company overall in Russia by sales value in 1H 20071
– #1 pharma company in the commercial segment by sales value in 1H 20071
 Industry leading growth and profitability
– Revenue growth +52% and achieved $169.7 mln in 1H 2007
– EBITDA growth +67% and achieved $65.0 mln in 1H 2007 or 38% as % from sales
 Market leading brands
– 6 brands among top-20 best selling domestic brands in Russia1
– Arbidol®, Pentalgin®, Complivit®, Terpincod®, Codelac®, Flucostat®
 Experienced sales force and modern and efficient manufacturing facilities
– More than 340 sales reps2
– Russian GMP compliant facilities, including lines at Kursk, some of which are EU GMP
compliant
 Fully integrated MasterLek company (distribution, SG&A cost, production ahead schedule)
Source:
1
2
11
Company
Pharmexpert, in wholesale prices
As at 30 June 2007
Roadshow Presentation
4. Financial Overview
Elena Arkhangelskaya, Chief Financial Officer
Roadshow Presentation
Our Portfolio growth in 1H 2007
IFRS basis
Sales
Pharmaceutical products
OTC products
Branded generics
Non-branded generics
Prescription products
Branded generics
Non-branded generics
Other sales
Medical equipment and disposables
Sale of goods
2007 H1
3,777
3,067
2,768
299
670
545
124
41
649
4,426
2006 H1
2,368
1,879
1,596
283
436
302
134
53
549
2,917
Growth
1,410
1,188
1,172
15
234
244
-10
-12
100
1,510
Growth %
60%
63%
73%
5%
54%
81%
(7%)
(23%)
18%
52%
Pro-Forma basis
Sales
Pharmaceutical products
OTC products
Branded generics
Non-branded generics
Prescription products
Branded generics
Non-branded generics
Other sales
Medical equipment and disposables
Sale of goods
13
Roadshow Presentation
2007 H1
3,777
3,067
2,768
299
670
545
124
41
649
4,426
2006 H1
3,070
2,474
2,190
283
542
402
140
54
549
3,619
Growth
708
593
578
15
128
144
-16
-14
100
808
Growth %
23%
24%
26%
5%
24%
36%
(11%)
(25%)
18%
22%
Rapidly Growing Revenue Profile
5,000
4,426
4,500
4,000
3,500
RUR mln .
649
3,619
41
670
549
15%
54
3,000
542
15%
2,500
2,000
2,917
549
19%
53
436
15%
3,067
1,500
2,474
68%
1,000
1,879
64%
500
0
1
1H 2006 PF
OTC
1H 2006
Prescription
3
Note:
14
Pro Forma assumes inclusion of Masterlek as part of Pharmstandard as of 1 January 2006
Roadshow Presentation
Other
1H 2007
Medical Equipmuipment
Achieved 52% revenue growth in 1H 2007
Source: Company
1
15%
15%
69%
Competitive Cost Structure 1H 2007
General and Administration Costs
Selling and Distribution Costs
800
752
17%
300
17%
700
250
7%
7%
249
238
6%
587
600
17%
193
200
17%
400
16%
16%
RUR mln .
492
500
RUR mln .
7%
17%
17%
7%
6%
6%
150
6%
6%
300
100
6%
16%
200
5%
16%
100
5%
0
16%
1H 2006 PF
Marketing
As % of Sales
1H 2006
Labour costs
1H 2007
Note:
1
Pro Forma assumes inclusion of Masterlek as part of Pharmstandard as of 1 January 2006
Roadshow Presentation
0
5%
1H 2006 PF
1H 2006
1H 2007
Other expenses
Source: Company reports
15
50
Labour costs
Other expenses
As % of Sales
Margin Expansion 1H 2007
EBITDA
Gross Profit
3,000
58%
57%
59%
1,800
58%
1,600
57%
1,400
38%
39%
38%
2,500
53%
37%
34%
2,000
56%
1,200
36%
55%
1,500
2,535
54%
RUR mln .
RUR mln .
35%
1,000
1,694
800
35%
34%
1,000
53%
1,925
600
1,220
1,684
1,017
52%
400
51%
200
50%
0
33%
500
0
1H 2006 PF
1H 2006
Gross Profit
1H 2007
As % of Sales
Source: Company reports
Note:
1
16
Pro Forma assumes inclusion of Masterlek as part of Pharmstandard as of 1 January 2006
Roadshow Presentation
32%
31%
1H 2006 PF
1H 2006
EBIDTA
As % of Sales
1H 2007
Attractive Profitability Growth
HY Net Profit 2006–2007
1,200
17%
22%
25%
22%
1,000
20%
RUR mln .
800
15%
600
21.4%
962
10%
400
647
617
5%
200
0
0%
1H 2006 PF
1H 2006
Net Profit
1H 2007
As % of Sales
50% Net Profit growth in 1H 2007 (pro-forma)
Source: Company reports
Note:
1
17
Pro Forma assumes inclusion of Masterlek as part of Phamstandard as of 1 January 2006
Roadshow Presentation
Consolidated Balance Sheet and Capex
IFRS basis
30 Jun 2007
31 Dec 2006
Cash and Equivalents
483
193
Other Current Assets
5,183
5,300
Long-term Assets
8,137
8,277
13,804
13,770
Total Assets
Total Debt
Current Liabilities (excl. shortterm debt)
Non-current Liabilities (excl. longterm debt)
3,778
3,875
1,558
2,425
1,165
1,129
Total Equity
7,303
6,340
13,804
13,770
Total Liabilities & Equity
Debt summary
 Facility A: US$91m (maturity Dec-2009/L+150)
 Facility B: US$55m (maturity Dec-2011/L+190)
 Net debt: US$128m
18
Roadshow Presentation
1,000
900
800
700
RUR mln .
(in millions of RUR)
Capital Expenditure
600
500
889
400
890
300
200
100
189
193
0
2004
2005
2006
CAPEX
1H 2007
Growth Analysis Across Market Segments1
2006
Corporation
International companies
Domestic companies
Pharmstandard
Commercial
FRP
Hospital
Commercial
FRP
Total sales
1H 2006
Total sales
1H 2007
Total
Growth
Commercial Total Growth
Growth
(%)
Commercial
Growth (%)
130,516
13,194
3,519
170,065
6,036
3,626
147,229
179,728
32,499
39,550
22%
30%
23,938
13,148
5,562
39,622
8,118
10,413
42,648
58,153
15,505
15,684
36%
66%
Pharm-Centr
15,329
4,706
10,512
22,565
3,893
19,921
30,547
46,379
15,832
7,236
52%
47%
Stada Arzneimittel Ag
37,600
15,159
418
40,689
3,339
585
53,177
44,613
(8,564)
3,089
(16%)
8%
Materia Medika
33,310
0
21
38,100
0
42
33,330
38,142
4,812
4,791
14%
14%
Microgene Npo
25,512
0
5,778
29,961
0
7,776
31,290
37,737
6,447
4,450
21%
17%
Veropharm Zao
20,466
4,307
4,925
23,923
2,542
6,703
29,698
33,168
3,470
3,457
12%
17%
Akrikhin
21,270
9,714
1,378
21,840
5,260
1,397
32,362
28,496
(3,866)
570
(12%)
3%
Biotek
14,715
2,060
5,880
20,508
1,612
5,976
22,655
28,095
5,441
5,793
24%
39%
Moshimpharmpreparaty
19,770
673
2,512
21,497
365
4,146
22,956
26,008
3,051
1,726
13%
9%
138,585
74,148
38,834
161,963
20,800
39,650
251,567
222,413
(29,154)
23,378
(12%)
17%
91,175
78,568
8,783
111,359
84,642
8,578
178,525
204,579
26,053
20,185
15%
22%
Pharmstandard
130,516
13,194
3,519
170,065
6,036
3,626
147,229
179,728
32,499
39,550
22%
30%
Berlin-Ch/Menarini
106,871
33,654
6,980
126,719
10,054
7,189
147,505
143,963
(3,543)
19,848
(2%)
19%
Bayer Schering Pharma
85,799
39,490
9,994
104,914
25,592
10,954
135,283
141,459
6,177
19,115
5%
22%
Sandoz
75,765
9,573
13,200
110,792
5,234
22,683
98,539
138,708
40,169
35,026
41%
46%
Gedeon Richter
90,266
23,115
14,299
106,582
6,813
18,348
127,679
131,742
4,063
16,316
3%
18%
Nycomed
81,068
11,162
13,639
105,984
5,445
11,179
105,869
122,608
16,739
24,916
16%
31%
Pfizer
88,088
22,651
16,330
106,347
2,477
13,585
127,068
122,409
(4,659)
18,260
(4%)
21%
Servier
84,184
61,812
3,480
103,324
13,389
3,293
149,476
120,006
(29,470)
19,140
(20%)
23%
Sanofi-Aventis
Novartis
Source:
Pharmexpert,
Note:
1
Hospital
Otechestvennie Lekarstva
3
19
2007
Based on sales in wholesale prices
Roadshow Presentation
Pharmstandard is growing in-line with its peers
in the commercial segment
Appendix
Roadshow Presentation
Russia—The World’s Fastest Growing Pharma Market
(in retail prices, US$bn)
30
28%
24%
2006 growth rate (%)
25
20
17%
15
14%
8%
10
7%
7%
5
5%
5%
3%
2%
0
(5)
(6%)
Russia
Brazil
China
Canada
Mexico
US
Spain
France
UK
Germany
Italy
Australia/NZ
Japan
(10)
Pharma market
size (US$bn)
8.4
8.4
11.4
13.7
8.1
197.8
11.6
25.6
15.7
27.7
14.9
5.8
56.7
Population
(in million)
142
187
1,315
33
108
340
45
61
60
83
58
25
128
Source: DSM, EIU
3
21
3%
Roadshow Presentation
Russia was the fastest growing pharma market in
2005–2006
Russian Pharma Market Set to Expand
Pharmaceutical Consumption Per Capita in Russia($)
Consumption per capita ($)
80.00
70
58
60.00
44
40.00
38
33
 Drug consumption per capita
27
amongst lowest in Europe
20.00
 Rapid market growth
0.00
2001
2002
2003
2004
2005
2006
Consumption per capita ($)
Pharmaceutical Consumption Per Capita by Country($)
300
250
214
194
165
150
171
142
111 119
100
22
38 49
Romania
Russia
0
Czech
Republic
Slovakia
2005
Source:
47 50
50
Hungary
Pharmexpert, EIU Market Indicators
Roadshow Presentation
 Russia was the fastest
growing market globally in
2004-2006
230
200
expected to continue
Poland
2006
Pharmstandard Key Development Milestones
Leksredstva plant (Kursk)
4Q03:
2Q04:
3Q05:
May 2006:
3Q06:
4Q06:
Acquisition of ICN’s
business in Russia
(five factories,
distribution centres
and pharmacy
chain)
Close Polypharm
(pharma production
facility)
Sale of
Marbiopharm
(pharma production
facility)
Legal name
changed from Biovit
LLC to OJSC
Pharmstandard
Acquisition of
Masterlek (3.5%
share of domestic
Russian Pharma
market by sales
value)
New production of spray, tablets and
capsules; central manufacture
laboratory and renovation of
production facilities
Total investment since 2004:
approximately RUR 600m
Pre 2003:
Group consisted
of two manufacturing facilities
2003
(Ufa and
Phytopharm)
operating under
Biovit LLC
23
2004
2005
2006
2007
Q104:
Jan 05:
1H05:
End 2005:
2H06:
1H06:
New management
team brought in
with experience in
international and
domestic pharma
companies
Acquisition of
TZMOI (Tyumen)—
manufacturer of
medical equipment
Open centralised
warehouse for
pharmaceutical
products in Moscow
Creation of holding
company/ legal
restructuring
finalised
Termination of
production in
Oktyabr plant in St
Petersburg,
production
transferred to other
existing sites
New production of solutions,
production of vitamins and insulin
Source:
Company
Note:
OJSC – Open Joint Stock Company, LLC – Limited Liability Company
Roadshow Presentation
Total investment since 2004:
approximately RUR 730m
2007:
New production workshops for
Rastan® and Phosphogliv®
Ufavita plant (Ufa)
Modern Production Facilities
Phytopharm
Capacity: 48m
Pharmstandard HQ
Moscow
Kursk
Nizhny Novgorod
Tyumen
Ufa
Leksredstva
Capacity: 645m
24
Ufavita
Capacity: 169m
Source:
Company
Note:
Capacity in packs. Figures shown are as of 31 December 2006
Roadshow Presentation
Tomsk
TZMOI
Tomskhimpharm
Capacity: 208m
Pharma Portfolio by Therapeutic Segment
Company sales split as at 1H 2007
H04-Other Hormones
1.2%
V03-All Other Therapeutic
Products
1.0%
A07-Antidiarrhoeals, Oral
Electrolyte Replacers And
Intestinal AntiA10-Drugs Used In
Inflammatories
Diabetes
1.5%
1.4%
N06-Psychoanaleptics
Excluding Anti-Obesity
Preparations
1.8%
L03-Immunostimulating
Agents
2.0%
R02-Throat Preparations
0.9%
Other
9.2%
J05-Antivirals For Systemic
Use
20.1%
R05-Cough And Cold
Preparations
16.5%
C01-Cardiac Therapy
2.1%
A05-Cholagogues And
Hepatic Protectors
5.7%
J02-Anti-Fungal Infections
6.2%
N05-Psycholeptics
6.6%
A11-Vitamins
8.3%
N02-Analgesics
15.6%
Sales = RUR 4,426 million (1H 2007)
OTC = 81% / Rx = 18%
Source:
25
Company sales
Roadshow Presentation
Production Facilities – Summary Overview
Approximate size
(sq. m.)
Factory
Source:
Note:
26
52,644
361,077
52,644
564,406
10,368
1,260
16,200
5,850 (lease)
Ampules
Frozen-dried preparation
Syrops & liquid forms
Tablets
Vitamin bars (ferrohematogen)
Insulin
Saline infusin
2
3
1
2
2
2
2
7,624
2,640
6,360
63,012
14,000
8,595
2,640
6,360
109,973
22,680
14,400
4,500
1,200 (lease)
Ointments
Powders
Syrops & liquid forms
Tablets
2
1
2
2
11,100
10,280
29,187
12,850
1,200
10,280
24,000
12,850
29,000 (own)
Syrops & liquid forms
Tablets
1
3
1,200
206,856
1,200
206,856
Closed in 2006
Capsules
Sprays
Tablets
2
1
2
1,384
4,582
72,797
857,593
1,070,412
295
624
24,250
319
7,320
295
624
24,250
319
7,320
Syringes
Needles
Sterilizing machines < 100 L
Sterilizing machines > 100 L
Aquadistilling machines
Company.
Total capacity for pharmaceutical production in 2006 excludes capacity from Oktyabr factory (St. Petersburg) which closed in Q3 2006
Total capacity calculations assume 8-hour shifts and 7 day working week
Roadshow Presentation
Capacity 000’s
packs Dec 2006
3
3
2
2
3
PHYTOFARM
(N.NOVGOROD)
TZMOI
(Tyumen)
Capacity 000’s
packs Dec 2005
Syrops & liquid forms
Tablets
Sprays
Powders
Capsules
UFAVITA
(UFA)
OKTYABR
(S.PETERSBURG)
Shifts
14,900 (lease)
LEKSREDSTVA
(KURSK)
TOMSKHIMPHARM
(TOMSK)
Formulation
2
2
2
2
2
Breakdown of Sales for 1H 2007 by Distributor
Top 5 Distributors – 2006
 Top 5 distributors accounted for 50% of
pharmaceutical product sales in 1H 2007
Distributor
 Typical payment terms for distributors:
– Regional and export distributors:
30–60 days
– National distributors: 60–90 days
– FRP program: 180 days
Source:
Note:
27
Roadshow Presentation
% of sales
Genesis
19
SIA International
9
Katren
8
Protek
8
Rosta
6
Total
50
Company
Manufacturers’ prices
Our Portfolio – Top 15 Pharmaceutical Products
Product
Status
ATC2
therapeutic segments
2007 Sales
(RUR mln)
Arbidol® 1)
OTC
Antiviral
20.0%
756.7
Terpincod®
OTC
Cough and Cold
11.9%
451.4
Pentalgin - N®
OTC
Analgesics
8.0%
303.0
Flukostat® 1)
OTC
Anti-fungal
6.0%
226.6
Phosphogliv®
Rx
Hepatic protectors
5.4%
202.7
Pentalgin - ICN®
OTC
Analgesics
5.0%
187.7
Complivit®
OTC
Vitamins
4.2%
158.9
Codelac®
OTC
Cough and Cold
3.4%
128.2
Corvalol®
OTC
Psycholeptics
2.1%
78.4
Amixin®
Rx
Immunostimulating agents
1.9%
71.4
Biosulin®
Rx
Diabet care
1.4%
53.0
Rastan®
Rx
Growth hormon
1.2%
44.3
Askophen-P®
OTC
Analgesics
1.0%
36.5
Validol®
OTC
Cardiovascular
0.9%
35.5
Complivit-Activ®
OTC
Vitamins
0.9%
27.8
73.1%
26.9%
2,762.2
1,015.3
100.0%
3,777.5
Top 15 Pharmaceutical products
Other pharmaceutical products
Pharmaceutical products total
Source:
Notes:
1
28
As % from total
pharmaceutical
sales in 2007
Company
Sales only formed part of consolidated results from 2 August 2006
Roadshow Presentation
Low Exposure to FRP
Composition of Leading Companies’ Sales in Russia by Market Segment in 2006
100
90
4
2
3
5
8
7
18
18
80
9
16
14
4
5
80
81
9
11
4
2
86
87
41
70
RUR mln .
60
50
40
95
88
74
73
30
54
20
10
Sanofi-Aventis
Novartis
Pharmstandard
BerlinCh/Menarini
Commercial
29
FRP
Sandoz
Gedeon Richter
Nycomed
Hospital
 Pharmstandard has a lower exposure to the FRP
compared to its peers
Source:
Pharmexpert
Note:
Based on wholesale prices in US$
Roadshow Presentation
Bayer Schering
Pharma
Pfizer
Product Pipeline
Near term pipeline
Products in development
Products in registration
Number of
registered
Product
applications Formulations trademarks
OTC
ATC1
Vitamins
Mineral supplements
Wound healing agents
Immunostimulating agents
Analgesics
Cough and cold preparations
Total
Rx
8
3
1
1
2
2
4
2
11
17
9
1
1
1
Number of
registered
Product
applications Formulations trademarks
ATC1
Functional gastro-intestinal disorder drugs
Antiemetics and antinauseants
Cholagogues and hepatic protectors
Drugs used in diabetes
Vitamins
Cardiac therapy
Agents acting on the renin-angiotensin system
Hypolipidaemics/anti-atheroma preparations
Topical corticosteroids
Pituitary and hypothalamic hormones
Immunostimulating agents
Analgesics
Psycholeptics
Total prescription
3
30
4
2
1
1
2
1
1
1
2
3
2
2
1
1
1
1
1
1
1
18
1
2
4
9
4
2
1
2
2
1
1
1
1
31
1
1
2
2
2
1
1
ATC1
Vitamins
Analgesics
Cough and cold preparations
Laxatives
Nonsteroidal products for inflammatory skin disorders
Total
ATC2
8
1
1
1
1
12
Products
Immunostimulating agents
Psychoanaleptics excluding anti-obesity preparations
Pituitary and hypothalamic hormones
Urologicals
Anti-asthma and COPD products
Antithrombotic agents
2
1
1
1
2
1
Total
8
1
1
1
1
14
Pipeline of OTC and Rx products supports Pharmstandard’s growth story
Roadshow Presentation
Products
Core Comparables Benchmarking
Gross margin (2006)
Sales growth (2006)
60%
80%
50%
60%
40%
30%
40%
20%
20%
10%
Veropharm
Zentiva
Zentiva
30%
Veropharm
30%
Stada
40%
Stada
Net profit margin (2006)
Krka
EBITDA margin (2006)
Krka
Hikma
Gedeon
Richter
Egis
Aspen
Actavis
Pharmstandard
Zentiva
Veropharm
Stada
Krka
Hikma
Gedeon
Richter
Egis
Actavis
Aspen
0%
Pharmstandard
0%
20%
20%
10%
10%
Hikma
Gedeon
Richter
Egis
Aspen
Actavis
Pharmstandard
Zentiva
Veropharm
Stada
Krka
Hikma
Gedeon
Richter
Egis
Aspen
Actavis
0%
Pharmstandard
0%
Source: Company reports. Veropharm figures based on equity research as 2006 results not available
3
31
Roadshow Presentation
PHS has industry leading growth and profitability
Arbidol®—#1 Pharma Brand in Russia
Leading Products in Anti-infective Systemic
Use Segment (1H 2007)
Arbidol®
 Captured #1 brand position, in part, through
active promotion by Pharmstandard sales force
 Acquired as part of Masterlek transaction
AFLUBIN (RICHARD
BITTNER GMBH)
4%
AMIXIN
(PHARMSTANDARD)
5%
GRIPPFERON (FIRN-M
ZAO)
3%
OTHER
4%
ANAFERON (MATERIA
MEDIKA)
5%
 Original product developed in 1987,
active marketing launched in 2000
ARBIDOL
(PHARMSTANDARD)
36%
IMMUNAL (SANDOZ)
6%
Segment Sales
CYCLOFERON
(POLYSAN)
6%
Dynamics1,2
250
5.37
4.72
200
82.9
4.0
3.03
3.0
44.9
100
1.91
1.23
50
3.1
29.5
1.49
5.5
40.2
54.0
16.4
12.2
62.2
74.5
2.0
37.4
128.6
96.9
53.9
74.4
0
0.0
2001
2002
2003
OTHER
Source:
1
2
32
1.0
Company
Source: Pharmexpert
Based on consumer prices
Roadshow Presentation
2004
2005
PHARMSTANDARD
2006
$/U
IH
IH
2006
2007
Average price (US$)
Sales (US$m) .
.
150
ANAFERON FOR KIDS
(MATERIA MEDIKA)
9%
5.0
4.30
3.89
6.0
OCILLOCOCCINUM
(LABORATOIRE
BOIRON)
9%
Source:
Note:
Pharmexpert
Remodelled to reflect current categories
VIFERON (FERON
OOO)
13%
Pentalgin—#1 Pain Reliever (Non-Narcotic)
Top-10 Products in Analgesics Segment (2006)
Pentalgin
PENTALGIN-N
(PHARMSTANDARD)
15%
 Looking to launch new (improved) formulation
of Pentalgin in 2007 to capitalise on
Pentalgin’s brand recognition
 Franchise includes Pentalgin-N® and
Pentalgin-ICN®
 First launched Pentalgin-ICN® in 1999 and
followed with launch of Pentalgin-N® in 2002
 Steadily gained market share since 2001
Annual Segment Sales
0.59
0.41
150
0.20
0.25
0.26
23.8
24.2
0.47
57.7
0.5
49.5
0.4
30.1
30.7
16.5
73.6
99.9
102.7
101.1
126.9
25.3
147.8
69.5
0.2
82.6
0
2002
2003
OTHER
33
0.1
0.0
2001
1
2
0.3
Company
Source: Pharmexpert
Based on consumer prices
Roadshow Presentation
2004
2005
PHARMSTANDARD
2006
$/U
IH
IH
2006
2007
Average price (US$)
0.32
0.6
.
Sales (US$m) .
200
Source:
ALKA-SELTZER (BAYER
SCHERING PHARMA)
3%
BARALGIN M (SANOFIAVENTIS)
7%
SEDALGIN-NEO
(ACTAVIS)
6%
0.7
0.48
50
PENTALGIN-ICN
(PHARMSTANDARD)
8%
TEMPALGIN (SOPHARMA)
8%
Dynamics1,2
250
100
OTHER
38%
NUROFEN PLUS (BOOTS
HEALTHCARE
INTERNATIONAL)
3%
Source: Pharmexpert
SOLPADEINE (GSK)
3%
CARDIOMAGNYL
(NYCOMED)
4%
SEDAL-M (SOPHARMA)
5%
Phosphogliv® – Successful Rx Product Launch
Phosphogliv®
Top products in Hepatic Protectors segment (2006)
 Launched in 2005
 Novel product in-licensed from the Institute of
Biomedical Chemistry
 Premium priced product based on superior
efficacy
 Patent protected until 2018
 Clinically validated
– 2nd generation combination therapy
with anti-viral, anti-inflammatory and
immunomodulating properties
Annual segment sales
Sales (US$m) .
4.55
100
3.86
1.2
6.0
3.2
190.5
1.5
0.6
4.2
4.0
129.6
50
52.0
2.5
69.5
80.1
90.9
96.0
94.9
IH
IH
2006
2007
0
2.0
0.0
2001
Source:
2002
2003
Company
OTHER
Source: Pharmexpert
Based on consumer prices
Roadshow Presentation
2004
2005
PHARMSTANDARD
2006
$/U
Average price (US$)
5.90
5.12
Source: Pharmexpert
10.0
8.0
6.85
150
HEPTRAL (ABBOTT
LABORATORIES)
21%
ARZNEIMITTEL AG)
6%
.
8.77
7.8
0.9
34
PHOSPHOGLIV
(PHARMSTANDARD)
4%
ESSENTIALE N (SANOFIAVENTIS)
5%
ESSLIVER FORTE (STADA
9.60
8.74
ESSENTIALE FORTE N
(SANOFI-AVENTIS)
24%
BERLITHION 300 IU
(BERLIN-CH/MENARINI)
3%
12.0
200
OTHER
18%
HEPABENE (RATIOPHARM
INTERNATIONAL)
3%
dynamics1
250
1
2
TYCVEOL (EUROPABIOPHARM ZAO)
3%
LIV-52 (HIMALAYA DRUG
COMPANY LTD.)
3%
CARSIL (SOPHARMA)
10%
35
Roadshow Presentation