pharmstandard – leading russian pharmaceutical company

Company presentation2009

PHARMSTANDARD – LEADING RUSSIAN PHARMACEUTICAL COMPANY

Pharmstandard company presentation (October 2009)

Market

Production

Leading domestic pharmaceutical company in Russia ( measured by sales)

• #4 pharma company overall in Russia

• #1 pharma company in the retail segment

• #1 domestic pharmaceutical company

Modern and efficient manufacturing facilities

• 4 pharmaceutical production sites and 1 medical equ ipment and disposables plant

• Russian standards compliant facilities, 6 lines on K ursk are EU GMP compliant

• More than 200 pharmaceutical products

Pharmstandard at a Glance

Pharmstandard company presentation (October 2009) 2

Sales &Marketing

Financials

• Capacity – more then 1,3 billion packs

Experienced sales force & Market leading brands

• 460 sales people

• Top best selling brands

• Launched 39 new products from 2004

Industry leading growth and profitability

• Leading EBITDA (39%) & Gross profit (48%) margins

• Total Sales of RUR 14 539 mln for 9m 2009, represen ting 40% growth

At Pharmstandard, we are dedicated to the development and manufacture of advanced pharmaceutical products, which meet healthcare requirements and patients’ expectations.

The company is committed to the following guiding principles:

• Innovation – speedy implementation of cutting-edge scientific developments in medicine and pharmacology in close cooperation with Russian and international scientists

• Efficiency – implementation of business process management procedures based on an efficient and balanced combination of technical and scientific innovations with a vast practical experience

Mission


balanced combination of technical and scientific innovations with a vast practical experience acquired over the years of extensive involvement in pharmaceutical market

• Responsibility – the use of international administrative and technological standards as part of the company’s responsible consumer policy. Compliance with ecological standards and commitment to the reduction of industrial effect on the environment in the context of the company’s responsibility to future generations.

Source: Company

Pharmstandard key development milestones

2003

4Q03:

Acquisition of ICN’s business in Russia (five factories, distribution centres and pharmacy chain)

2H05:

Sale of Marbiopharm (pharma production facility)

Creation of holding company/ legal restructuring finalised

4Q06:

New production of spray, tablets and capsules; central manufacture laboratory and renovation of production facilities

Total investment since 2004: approximately RUR 600m

Leksredstva plant (Kursk)2H06:Termination of production in Oktyabr plant in St Petersburg, production transferred to other existing sitesAcquisition of Masterlek (3.5% share of domestic Russian Pharma market by sales value)

May 2007:

Pharmstandard successfully completed its IPO, selling 43% of its share capital to the international and domestic institutional investors

Pre 2003:

Group consisted of two manu-facturing facilities (Ufa and 2004 2005 2006 20082007


2003

Q104:

New management team brought in with experience in international and domestic pharma companies

2Q04:Close Polypharm (pharma production facility)

1H05:

Acquisition of TZMOI (Tyumen)—manufacturer of medical equipment

Open centralised warehouse for pharmaceutical products in Moscow

1Q08:

Acquisition of 19,88% shares of «DIPAKA TRAIDING LIMITED», which owns Mirpharm

Signing agreement with Grindeks on exclusive distribution and promotion of Mildronate®

2007:Solvay and Pharmstandard has signed the agreement on manufacturing two pharmaceutical products Imudon® and IRS 19® in Russia

Start production of Arbidol and Flucostat on Leksredstva ( Kursk)

1H06:

New production of solutions, production of vitamins and insulin at Ufavita plant (Ufa). Total investment since 2004: approximately RUR 730m

May 2006:Legal name changed from Biovit LLC to OJSC Pharmstandard

(Ufa and Phytopharm) operating under Biovit LLC

2004 2005 2006 20082007

1. Promote our market-leading brands to drive sales growth and profitability– Focused promotion of major umbrella brands

– Discontinue lower margin products (e.g. old traditional products, medical disposables)

2. Launch new products on a regular basis– Focus on new branded OTC products and generic prescription products

3. Expand sales and marketing effort– Increase “feet on the street”, specialise sales force to improve efficiency of physician detailing

4. Grow through acquisitions and realize synergies

Strategy


– Entire companies, brands, trademarks, patents

5. Cooperation with leading pharmaceutical companies

6. Continue to actively control costs– Focus production at cost efficient facilities

7. Exploit opportunities arising from government funding of healthcare

Building the leading pharmaceutical company in Russia

Company

• Pharmstandard increased its participation in FRP programme (23% from PHST total sales);

• Arbidol® is proven to be active against viruses A/H1N1 California and Moscow strains;

• Direct antiviral effect of Arbidol® is confirmed in major scientific peer-review journal

• Pharmstandard receives international EU GMP certificates for six Pharmstandard – Leksredstva JSC production

lines

• 6 Pharmstandard brands are named among the top 10 best selling brands in Russia

• Company launches 36 new products in 2004 - 2009

• The total output of medicines exceeds 640 million packages (over four packages per each Russian resident)

Achievements


• Pharmstandard has become a full member of the International Pharmaceutical Excipients Council (IPEC) Europe.

Long-term projects and Acquisitions

• In February 2008, Pharmstandard and Grindeks (Latvia) sign a long-term cooperation agreement for exclusive

distribution and promotion of Mildronate®

• Successful development of SOLMIR project – in-license manufacturing of 2 products for Solvay Pharmaceutical

• New agreement with Pharmapark on marketing and exclusive sales of Altevir®

Sales – 9m 2009

• Revenue growth +40%* - excluding foreign exchange gain or loss

Manufacturing


Production facilities overview

• Pharmstandard invested more than USD150 mln from 2004-2009 to modernize production capacity.

• Pharmstandard owns 4 pharmaceutical plants (in Kursk, Ufa, Tomsk, N.Novgorod) and one plant of medical equipment and disposables (in Tyumen)

• Pharmstandard manufactury in Kursk – first Russian pharmaceutical plant which complient to EU GMP lines (6 production lines certified as GMP complient in 2008-2009)

• Total pharma production capacity - more than 1.3 billion packs per year

Pharmstandard facilities overview


Source: Company

Pharmstandard modern production capacity

Factory Approximate size (sq. m.) Formulation

Capacity 000’s packs Dec 2005



14'900 (own) Syrops & liquid forms 52,644 52,644 46,456

Tablets 361,077 564,406 638,705

Sprays 10,368 12,288

Powders 1,260 2,241

LEKSREDSTVA (KURSK)

Capsules 16,200 18,870

5'850 (lease) Ampules 7,624 8,595 10,346

Frozen-dried preparation 2,640 2,640 3,360

Syrops & liquid forms 6,360 6,360 9,053

Tablets 63,012 109,973 159,711

Vitamin bars (ferrohematogen) 14,000 22,680 33,660

Insulin 14,400 14,400

UFAVITA (UFA)

Saline infusin 4,500 0

1'200 (lease) Ointments 11,100 1,200 13,600

Powders 10,280 10,280 10,000 PHYTOFARM


Powders 10,280 10,280 10,000

Syrops & liquid forms 29,187 24,000 23,699

PHYTOFARM (N.NOVGOROD)

Tablets 12,850 12,850 8,265

29'000 (own) Syrops & liquid forms 1,200 1,200 5,400 TOMSKHIMPHARM (TOMSK) Tablets 206,856 206,856 326,949

Closed in 2006 Capsules 1,384

Sprays 4,582

Tablets 72,797

OKTYABR

(S.PETERSBURG)

857,593 1,070,412 1,357,852

Syringes 295 295 552

Needles 624 624 1,200

Sterilizing machines < 100 dm³ 24,250 24,250 8,400

Sterilizing machines > 100 dm³ 319 319 318

Aquadistilling machines 7,320 7,320 6,200

TZMOI (Tyumen)

Manufacturing Facilities: Kursk

• Facility in Kursk – one of the best pharmaceutical production plant in Russia with GMP compliant production lines. (first EU GMP plant in Russia)

• Output capacity more than 800 million packs per year.

• Specializes in the development of tablets, pills, sprays, aerosols, capsules, sachets and liquids


Manufacturing Facilities: Ufavita

• Output capacity – over 200 million package units per year.

• Dosage forms: tablets and pills, pellets, ampules, syrups, bottles, cartridges and lozenges. The plant also supplies genetically engineered products, including Biosulin® insulin preparation, Rastan ® growth hormone preparation and Filgrastim preparation produced under Neipomax® trade-name


Manufacturing Facilities: Tomsk

• Output capacity – over 300 million package units per year. Dosage forms: tablets and pills, solutions and aerosols

• Produces 2 products (IRS-19® and Imudon®) for Solvay Pharmaceutical (in-license project)


Manufacturing Facilities: Nizhny Novgorod

• Output capacity – over 1 million package units per year. Dosage forms: ointments


Manufacturing Facilities: Tyumen

• Specializes in the production of medical equipment and disposable systems

• Capacity:

– Sterilizers up to 24.6m (depends on volume) annually

– Aqua-distillers – 7.3m annually

– Syringes – 0.3 million annually


– Syringes – 0.3 million annually

• Plant area approximately239 thousand sqm

Sales& Marketing


Business overview

GEDEON RICHTER (3,1%)

3,31%

SANOFI-AVENTIS (3,6%)

3,60%

BERLIN-CH/MENARINI (3,5%)

3,64%

BAYER HEALTHCARE (2,9%)

3,84%

SANDOZ (3,3%)

3,21%

PHARMSTANDARD (5,4%)

4,77%

Market Share – All Companies Market Share – Retail Seg ment

BERLIN-CH/MENARINI (2,9%)

3,09%

PHARMSTANDARD (4,1%)

3,83%

BAYER HEALTHCARE (3,3%)

3,84%

SANOFI-AVENTIS (3,7%)

3,87%

TEVA PHARM (1,9%)

2,90%


NOVARTIS (4,6%)

4,57%

PHST – Leading Russian Pharmaceutical Company


OTHER

66,52%

NYCOMED (2,9%)

2,99%

NOVARTIS (3,1%)

2,90%

SERVIER (2,9%)

2,83%

STADA ARZNEIMITTEL AG (2,2%)

2,39%

#4 pharma company in Russia overall

#1 domestic pharma company

#1 in Retail segment

OTHER

66,81%


2,87%

SANDOZ (2,8%)

2,87%

ROCHE (2,9%)

2,72%

NYCOMED (2,5%)

2,64%

MS in 1H 2009

(1H 2008 – in brackets)

Latvia0,8%

Bulgaria1,5%

Kazakhstan1,0%

Azerbaijan0,7% Cuba

0,4%Turkmenistan

0,5%

Armenia2,2%

Pridnestrovie1,1%

Moldova1,6%

Belarussia7,8%

CIS:1. Ukraine 2. Uzbekistan3. Belorussia4. Armenia5. Moldova6. Kazakhstan7. Azerbaijan8. Turkmenistan

Europe:1. Latvia2. Lithuania3. Bulgaria

Latin America:1. Cuba

PHST – Export sales structure


Ukraine58,8%

Uzbekistan23,7%New countries (negotiations in process):

Latin America – Venezuela, Argentina, NicaraguaAfrica – NigeriaEast – Iran, Iraq, Afghanistan, Mongolia, China

Pharmaceuticals

97% of 9m 2009 sales

Medical Equipment

3% of 9m 2009 sales

OTC66% of 2008 sales

Rx34% of 2008 sales

9m 2009 Sales Structure


� 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

� Product portfolio includes:

� Sterilisers

� Distillers

� Medical disposables

40% revenue growth in 9m 2009

24% growth 138% growth (50% organically*) 45% decr ease

8 759

6 852

4 942

3 178

1 7260

2 000

4 000

6 000

8 000

10 000

2004 2005 2006 2007 2008

14 336

11 371

8 523

5 6853 946

0

5 000

10 000

15 000

2004 2005 2006 2007 2008

`

Revenue, RUR mln

44%

CAGR - 38%

Gross Profit, RUR mln

50%

33%

26%CAGR - 50%

84%

56%

39%

28%

5 Years of Substantial Growth


Source: Company data, IFRS FS

Pharmstandard demonstrates growth from 2004 to 2008

6 049

4 882

3 255

1 7205830

2 000

4 000

6 000

8 000

2004 2005 2006 2007 2008

EBITDA, RUR mln

3 503

3 263

2 036

1 0193200

1 000

2 000

3 000

4 000

5 000

2004 2005 2006 2007 2008

Net Profit, RUR mln

CAGR - 79%

195%

89%

50%

24%CAGR - 82%

218%

100%

60%

7%

Market structure by sales channels

IMPORT; 36% DOMESTIC; 64%Volume(Packs)

Split between domestic and international firms

Hospitals7%

FRP18%

4,1 billion units

Russian Market Structure


IMPORT; 79% DOMESTIC; 21%

0% 20% 40% 60% 80% 100%

ValueRUR

IMPORT

DOMESTIC

Retail

75%

Commercial

FRP

Hospitals

389 billion RUR

Source: Pharmexpert, retail prices, 2008

Top 5 ATC1 categories occupies 67% of total Commercial retail market

A ALIMENTARY TRACT ANDMETABOLISM

R RESPIRATORY SYSTEM

C CARDIOVASCULAR SYSTEM

N CENTRAL NERVOUS SYSTEM

J GENERAL ANTI-INFECTIVES SYSTEMIC

PHS #4

Pharmstandard Top Positioning in ATC1 Categories


G GENITO-URINARY SYSTEM AND SEXHORMONES

M MUSCULO-SKELETAL SYSTEM

D DERMATOLOGICALS

V VARIOUS

L ANTINEOPLASTIC ANDIMMUNOMODULATING AGENTS

S SENSORY ORGANS

PHS #2

PHS #26*

PHS #1

PHS #1

* - Excluding Mildronate – major brand in this catego ry

Source: Pharmexpert, retail prices, 2008

2020 Russian Pharma Strategy*• Provision with domestically produced medicines• Harmonization of Russian standards of medication development and production with international requirements• Stimulation of innovative medications development and production, support of Russian medications export• Protection of the internal market from unfair competition• Technical re-equipment of the Russian pharmaceutical industry• Quality conformity confirmation of medications. Eliminating excessive administrative barriers during registration of

domestic medicines• Educational system for preparation of specialists for the pharmaceutical industry

• New list of life-saving drugs.Price control (project).

• GMP production facilitiescertification for budgetPHARMA

Goals

Budget


By 2020• Domestic products consumption – 50% of total market by value• Share of innovation preparations on the domestic market – 60% of total market by value• Increase of export by 8 times compared to 2008• Provision of medicinal safety of the RF in compliance with the list of life-saving drugs• Stimulation of domestic substances production sufficient for production of 50% of total drugs by value

* - Strategy of pharmaceutical industry development in the Russian Federation for the period up to the year 2020

certification for budgetprocurement from Jan 2010(project)

• 15% price preference for localproducers in budget tenders

• New law about pharmaceuticalproducts (project)

2009-2020 budget: RUR 177 bnPHARMA2020

Expected Results

Current

Steps

Budget

Marketing


Products portfolio overview

• Over 200 pharmaceutical products

• Treatment of cardiovascular and infectious diseases, cancer, gastroenterological, neurological and metabolic disorders, diabetes, growth hormone deficit, etc.

• Over 90 formulations produced by Pharmstandard are included in the List of Vital Pharmaceutical Products.

• The company portfolio includes Russia’s best-selling brands. Among them are Arbidol ®, Complivit®, Pentalgin®, Flucostat®, Codelac®, Phosphogliv® and Amiksin ®.

Product Portfolio


Source: Company

Best Selling Brands 1H 2009

№ BRANDVolume (mln

packs) Sales (mln RUR)% of total

salesVolume (mln

packs)Sales (mln

RUR)% of total

sales Change % Change %1 Velcade 0,040 2 278 23% 0,000 0 - 0,040 - 2 278 -2 Arbidol 12,329 1 475 15% 9,962 1 021 18% 2,368 24% 454 44%3 Pentalgin 18,306 945 10% 14,051 690 12% 4,255 30% 255 37%4 Mildronate 3,087 674 7% 3,089 627 11% -0,002 0% 46 7%5 Complivit 7,164 487 5% 5,426 342 6% 1,738 32% 144 42%6 Codelac 3,392 339 3% 2,762 157 3% 0,630 23% 183 116%7 Phosphogliv 0,934 326 3% 0,727 238 4% 0,206 28% 88 37%8 Flukostat 2,700 316 3% 2,343 272 5% 0,357 15% 44 16%9 Terpincod 2,151 302 3% 9,083 799 14% -6,932 -76% -497 -62%

10 Afobazol 1,297 191 2% 0,000 0 0% 1,297 - 191 -Other brands 282,024 2 413 25% 236,855 1 504 27% 45,169 19% 909 60%

1H 2009 1H 2008 Volume 09/08 Sales 09/08


Other brands 282,024 2 413 25% 236,855 1 504 27% 45,169 19% 909 60%TOTAL SALES 333,424 9 747 100% 284,297 5 651 100% 49,127 17 % 4 095 72%

Pharmstandard demonstrated total value growth of 32 %

Top 10 OTC Brands 1H 2009



salesVolume (mln

packs)Sales (mln

RUR)% of total

sales Change % Change %1 Arbidol 12,329 1 475 26% 9,962 1 021 24% 2,368 24% 454 44%2 Pentalgin 18,306 945 16% 14,051 690 16% 4,255 30% 255 37%3 Complivit 7,164 487 8% 5,426 342 8% 1,738 32% 144 42%4 Codelac 3,392 339 6% 2,762 157 4% 0,630 23% 183 116%5 Flukostat 2,663 310 5% 2,316 268 6% 0,347 15% 42 16%6 Terpincod 2,151 302 5% 9,083 799 18% -6,932 -76% -497 -62%7 Afobazol 1,297 191 3% 0,000 0 0% 1,297 - 191 -8 Amixin 0,399 175 3% 0,293 127 3% 0,106 36% 48 38%9 Corvalol 26,431 126 2% 22,260 93 2% 4,171 19% 33 36%

10 IRS-19 0,439 107 2% 0,000 0 0% 0,439 - 107 -Other brands 236,675 1 274 22% 201,027 827 19% 35,648 18% 447 54%

1H 2009 1H 2008 Sales 09/08Volume 09/08


Other brands 236,675 1 274 22% 201,027 827 19% 35,648 18% 447 54%TOTAL SALES 311,247 5 732 100% 267,179 4 324 100% 44,068 16 % 1 408 33%

� Newcomers in the list: Afobazol and IRS-19

� Pharmstandard demonstrated total OTC growth of 33%,

(16% volume growth)

Top 10 Rx Brands 1H 2009



salesVolume (mln

packs)Sales (mln

RUR)% of total

sales Change % Change %1 Velcade 0,040 2 278 23% 0,000 0 - 0,040 - 2 278 -2 Mildronate 3,087 674 17% 3,089 627 47% -0,002 0% 46 7%3 Phosphogliv 0,934 326 8% 0,727 238 18% 0,206 28% 88 37%4 Biosulin 0,180 91 2% 0,168 71 5% 0,011 7% 20 29%5 Combilipen 0,744 74 2% 0,074 6 0% 0,671 910% 69 1195%6 Reduxin 0,066 68 2% 0,032 25 2% 0,033 103% 43 174%7 Pikamilon 2,118 57 1% 1,305 23 2% 0,813 62% 34 146%8 Cyclodol 1,249 51 1% 0,982 33 3% 0,267 27% 18 54%9 Azitrox 0,254 41 1% 0,150 22 2% 0,105 70% 19 86%

10 Renipril 0,944 35 1% 0,880 31 2% 0,064 7% 5 16%

1H 2009 1H 2008 Volume 09/08 Sales 09/08


10 Renipril 0,944 35 1% 0,880 31 2% 0,064 7% 5 16%Other brands 12,562 319 8% 9,711 251 19% 2,851 29% 68 27%TOTAL SALES 22,177 4 015 100% 17,118 1 327 100% 5,059 30% 2 688 203%

Pharmstandard demonstrated total Rx value growth of 31%

Arbidol®

Antiviral and immunostimulating agent

• Arbidol® has a direct antiviral activity, and also produces a moderate immunostimulating effect.

• It is active against influenza A and B viruses, viruses causing acute respiratory viral infections (ARVIs), including «bird flu» and A1H1, rotaviruses, atypical pneumonia virus and respiratory syncytial virus (RSV).

• Reduces the severity of flu and ARVIs and prevents complications.

• When used for preventive purposes, decreases 7.5-fold the risk of flu and ARVIs during outbreaks.

• Recommended for adults and children over 3 years old.

• Winner of the “Platinum Ounce” award 2006, 2007

Antiviral and immunomodulatory products


• Winner of the “Platinum Ounce” award 2006, 2007

Amixin®

Immunostimulating and antiviral agent

• Amixin® is an inducer of endogenous interferons (α, β, γ) synthesis.

• Possesses immunomodulatory and antiviral effect.

• Regulates immune response and stimulates production of antibodies.

• Can be used in the complex therapy of various viral and bacterial infections.

Source: Company

Codelac® and Codelac® Phyto

Composite antitussive medication

• Codelac® and Codelac® Phyto are composite medications containing medicinal herbs used for the treatment of dry and underproductive cough in adults and children.

• These medications ameliorate cough (not suppressing it totally) and preserve sputum discharge.

• Contain extracts of medicinal herbs (thermopsis, liquorice, thyme) and a subtherapeutic dose of codeine.

• Used for the treatment of dry and underproductive cough of various etiology in adults and children with bronchopulmonary diseases.

Products for the symptomatic relief of Flu and Cold s (ARVIs)


Codelac® Broncho

Combined expectorant preparation

• it reduces sputum viscosity and facilitates its passage and has a combined secretolytic, secretomotor and expectorant effect;

• it effectively arrests airway inflammation;

• it has a combined antiviral and immunomodulatory effect;

• it speeds up epithelial repair

Source: Company

Maxicold®

Combined preparation for the symptomatic relief of acute respiratory infections and colds

• Maxicold® is a combined preparation providing symptomatic relief of colds and flu.

• Effectively decreases elevated body temperature owing to the high dose of paracetamol (750 mg)

• Can be used for the complex therapy of flu and colds and is fully compatible with anti-viral products (e.g. Arbidol®).

Products for the symptomatic relief of Flu and Cold s (ARVIs)


Influnorm®

Preparation for the symptomatic relief of acute respiratory infections and colds

• Influnorm® is a composite anticatarrhal medication, and is effective at the first signs of common cold and influenza.

• Influnorm® provides the effective treatment of rhinitis owing to the effects of two active components that reduce nasal congestion.

• Helps to restore overall performance.

Source: Company

Azitrox®

Antibiotic, azalide

• Azitrox® is the optimal choice for empiric therapy of bacterial respiratory infections.

• It is a standard drug used in the treatment of urogenital chlamydial infections, including urogenital chlamydial infections during pregnancy.

• Highly effective against mycoplasmal and mixed urogenital infections;

• Can be used as alternative medication in Helicobacter pylori eradication schemes.

• Can be used for skin and soft-tissue infections.

• Produces high tussie and intracellular concentrations.

• Provides potent targeted prolonged action in the locus of infection.

• Has additional immunomodulatory and anti-inflammatory action.

• Convenient for patients ensuring their compliance with the doctor’s recommendationsas it is taken once daily, by short course of treatment and is well-tolerated.

Products used in the treatment of bacterial and fun gal infections


Termicon®

Antifungal agent

• Termicon® is the drug of choice for the treatment of fungal infections of skin (dermatomycoses) and its derivates.

• A wide range of fungicidal activity.

• Additional anti-inflammatory and antibacterial effect.

• Can be prescribed to children over 3 years of age and to patients with chronic disorders, including those taking concomitant medications.

• Available in three dosage forms that enables doctors to choose the optimal treatment for every patient depending on the localization, extension, form and severity of the mycosis.

• High rate of rapid recovery with the low recurrence rate.

Source: Company

Flucostat®

Antifungal agent

• Flucostat® has a wide range of antifungal activity.

• It is the first choice antifungal for the treatment of candidiasis of any localization.

• The drug has favorable pharmacokinetic properties, including oral bioavailability comparable with that of parenteral administration; a high degree of distribution in tissues and body fluids; prolonged therapeutic effect and long-term protective action.

• It possesses high safety profile and has no age restrictions.

• The drug has easy and convenient dosage regimen.

Products used in the treatment of bacterial and fun gal infections


• The drug has easy and convenient dosage regimen.

• Flucostat® is available both in capsules and bottles (for parenteral administration), that makes possible its administration for prophylaxis and treatment of fungal infections in patients of all ages and the use of “switch” therapy if needed (in cases of dysphagia and intestinal absorption disorders).

Source: Company

Pentalgin®-N

Combined non-narcotic analgesic

• A combination of 5 components provides a quick and

pronounced analgesic effect.

• Efficient relief for a variety of pain.

• Additional anti-inflammatory action.

• A combination of active agents helps to reduce their respective doses and

improves tolerability of the drug.

Pentalgin® Plus

Pain management and non-steroidal anti-inflammator y products


Pentalgin® Plus

Combined non-narcotic analgesic

• Quick effect (due to the combination of paracetamol and propyphenazone).

• Improved safety profile.

Artrozan®

Non-steroid anti-inflammatory drug (NSAID)

• Efficient remedy for pain and inflammation.

• Improved safety profile as compared to non-selective NSAIDs.

• Optimal cost/efficacy ratio.

Source: Company

Benfolipen®

Multivitamin formulation – vitamin B complex

Benfolipen® is used in complex therapy of various neurological disorders:

• polyneuropathy of various etiology (diabetic, alcohol);

• pain syndrome caused by spinal cord diseases, including intercostals neuralgia, lumbar ishialgia, lumbar syndrome, cervical syndrome, cervicobrachial syndrome, radicular syndrome caused by degenerative spine changes;

• trigeminal neuralgia;

• Bell’s palsy

Combilipen®

Products used for the treatment of nervous system diseases


Combilipen®

Multivitamin formulation – vitamin B complex

• Combilipen® is used in complex therapy of various neurological disorders:

• polyneuropathy of various etiology (diabetic, alcohol);

• pain syndrome caused by spinal cord diseases, including intercostals neuralgia, lumbar ishialgia, lumbar syndrome, cervical syndrome, cervicobrachial syndrome, radicular syndrome caused by degenerative spine changes;

• trigeminal neuralgia;

• Bell’s palsy

Source: Company

Afobazol®

Anxiolytic agent

• Afobazol® is a new anxiolytic agent for the treatment of a wide range of disorders accompanied by a feeling of anxiety and tension.

• It does not cause diurnal drowsiness or muscle relaxation.

• Treatment with the drug does not lead to addiction or withdrawal syndrome.

Octolipen®

Metabolic drug

• Octolipen® is a powerful antioxidant used in pathogenetic

treatment of polyneuropathy.

Products used for the treatment of nervous system d iseases


treatment of polyneuropathy.

• Provides neuroprotective effect.

• Has a positive impact on the functional state of the central nervous system and on the activity of the vegetative nervous system.

• Improves neuron trophics and endoneural blood flow.

• Has a proven efficacy in the treatment of diabetic and alcohol polyneuropathy.

Passifit®

Sedative herbal preparation

• Passifit® is an efficient remedy for neurosis, excessive nervousness and insomnia.

• Contains five herbal components – mint, valerian, thyme, hawthorn and hops – which complement and augment each other’s effects.

• Does not contain exotic herbs or synthetic tranquilizers.

Source: Company

• Pharmstandard is an expert in manufacturing of vitamin-mineral complexes (VMCs), and the preparation Complivit® is the top-selling brand among vitaminmineral complexes in Russia (according to “Pharmexpert” company’s data 2004-2008)

• Vitamin portfolio includes wide range of preparations for children, adults, pregnant and breast-feeding women. All VMCs are manufactured with the use of modern equipment via separate granulation technology to avoid interaction of active components.

Vitamin and mineral supplements


Source: Company

Phosphogliv®

Hepatoprotective agent

• Phosphogliv® is a unique hepatoprotective agent with an antiviral activity.

• A nanotechnology used in its manufacturing process ensures the perfect efficacy and safety characteristics.

• Phosphogliv® provides a double action: both etiotropic and pathogenetic effects.

• Available in two dosage forms: capsules and vials with lyophilisate for solution for intravenous infusion.

• Winner of the “Platinum Ounce 2001” award, winner of the RF Government Award.

Products used for the treatment of gastroenterologi cal diseases


Gastrozol®

Proton pump inhibitor

• Gastrozol® contains omeprazole, the best-studied agent among proton pump inhibitors.

• Bioequivalent to the original product.

• Efficacy and safety was proven in clinical studies and confirmed by long-term clinical experience.

• A hydrosorbent package guarantees reliable results irrespective of unfavourable exposure.

Source: Company

Neosmectin®

Antidiarrheal agent

• Neosmectin® is a potent adsorbent of new generation with improved sorption properties.

• Efficiently adsorbs bacterial toxins, viruses, bile salts, and intestinal gases.

• Neutralizes excessive acidity.

• Possesses a gastroprotective effect.

• Effective in the treatment of a wide range of diseases: infectious and non-infectious diarrhoea, colitis, gastritis, atopic dermatitis and food allergies.

• Recommended for babies, children and adults of all ages.

Products used for the treatment of gastroenterologi cal diseases


Lactasar®

dietary supplement

Recommended as a dietary supplement – additional source of lactase enzyme.

Lactase is an enzyme, which decomposes food lactose and provides its absorption. In cases of lactase deficiency, consumption of lactose containing foods results in symptoms of indigestion: bloating, diarrhoea, and intestinal colic. Lactase deficiency may be hereditary (primary lactase deficiency) or acquired (secondary lactase deficiency). Acquired lactase deficiency can be provoked by infectious, immune, inflammatory or atrophic intestinal changes. The intake of lactase enzyme allows consuming milk products irrespective of the type of lactase deficiency.

Source: Company

Neipomax®

Leucopoiesis stimulating agent

• Innovative approach to prevention and treatment of neutropenia.

• Original Russian technology of production of recombinant human granulocytes colony-stimulating factor was developed under supervision of the Academician of the Russian Academy of Sciences (RAS) A.I. Miroshnikov at the Institute of Bioorganic Chemistry of RAS named after M.M. Shemyakin and Yu.A. Ovchinnikov.

Products used for the treatment of oncological disea ses


Source: Company

Liptonorm®

Hypolipidemic agent

• Liptonorm® is the first Russian equivalent of Atorvastatin.

• Rapid and effective achievement of the target lipid levels.

• High tolerability.

• Convenient packing with control of dosing regimen.

• Proven pharmacokinetic and therapeutic equivalence to the original drug.

Renipril®

Antihypertensive agent

Products used for the treatment of cardiovascular d iseases


Antihypertensive agent

• Renipril® is the drug of choice for the treatment of arterial hypertension and congestive heart failure.

• Its use is supported by long-term clinical experience with this agent.

• The long-term treatment with this drug is safe and well tolerated.

Renipril HT®

Combined antihypertensive preparation

• Renipril HT® is the drug of choice in case of insufficient efficacy

• of monotherapy in the treatment of arterial hypertension (AH).

• It has an effect on the two key pathological processes of AH at one time.

• Renipril HT® has a simple dosing regimen – 1 tablet per day.

• The long-term treatment with this agent is well tolerated.

Source: Company

Nitrospray®Antianginal agent

• Nitrospray® is as effective as nitroglycerine tablets, but has the advantage of a more rapid action.• Convenient to use: one pressing corresponds to one dose. • One dose of spray is equivalent to one pill.• Contains 200 doses in one bottle instead of the traditional 40-tablet package of nitroglycerine. • Affordable cost of medication in comparison with other medicines from this group.

Blocktran®Antihypertensive agent

• Blocktran® is the drug of choice for the treatment of arterial hypertension and congestive heart failure.

Products used for the treatment of cardiovascular d iseases


• Blocktran® is the drug of choice for the treatment of arterial hypertension and congestive heart failure.• It provides an effective control of blood pressure 24 hours a day.• It has proven target organ protective effect.• It’s safety profile is comparable with placebo.

Mildronate®Anti-ischemic agent correcting cardiac metabolic processes

• Good safety profile and tolerance.• Improvement of physical and mental capacity.

Exclusive distribution and promotion in Russia by Pharmstandard JSC. Manufactured by Grindex JSC, Latvia.

Source: Company

The manufacturing of insulin in Russia is a guarantee that diabetic patients will always receive vital medication irrespective of current international political and economic situation. In this way, it enhances biological safety of Russia.

Biosulin® R

Antihyperglycemic agent, short-acting insulin

INN: soluble human genetically engineered insulin

Products used for the treatment of endocrine diseases


Biosulin® N

Antihyperglycemic agent, medium-acting insulin

INN: Insulin-Isophane (human genetically engineered)

Source: Company

Rastan®

Somatotropic hormone

• The first Russian growth hormone preparation

• The strain and technology of manufacturing were developed by scientists from the Institute of Bioorganic Chemistry of RAS named after Academicians M.M. Shemjakin and Yu.A. Ovchinnikov under supervision of the Academician of RAS A.I. Miroshnikov.

• All quality parameters of the substance comply with the requirements of American and European pharmacopeias.

• The clinical study of the product carried out at the Institute of Paediatric Endocrinology of Endocrinology Scientific Centre of the Russian Academy of Medical Sciences (RAMS) has demonstrated high efficacy and safety of this agent.

Products used for the treatment of endocrine diseases


Formetin®

Oral antihyperglycemic agent (biguanide)

• Formetin® has a long-term experience of clinical use worldwide.

• It is highly effective and well-tolerated.

• Reduces the risk of cardiovascular diseases.

Source: Company

R&D


Research & Development

• Launching more than 10 new products every year

• In 2004-2008, the company launched more than 35 new preparations

• Portfolio expansion is based on the production of high quality generics at user friendly-prices and development of innovative formulations

• Close cooperation with the leading Russian research centers

• All new formulations undergo rigorous preclinical and clinical studies in compliance with the requirements of applicable international and national regulations

• Support for medical research centers

• Supplying practicing doctors with reliable scientific information and teaching resources required

Research & Development


• Supplying practicing doctors with reliable scientific information and teaching resources required for the improvement of the healthcare quality.

Source: Company

Product Launches 2008

Product Date Description

ATC value,

2007, US$ mln

ATC value,

2008, US$ mln

OTC

Influnorm Jul08 R05A - cold preparation without anti-infectives 157 205

Pentalgine Plus Mar08 N02B - non-narcotics analgesics and antypyretics 216 281

Complivit Ophtalmo Jul08 A11A - multivitamins with minerals 204 252

Complivit Se Aug08 A11A - multivitamins with minerals 204 252

Complivit Fe Aug08 A11A - multivitamins with minerals 204 252

Complivit Mg Sep08 A11A - multivitamins with minerals 204 252

Product Launches 2008


Neurocomplit Feb08 A11D - B1 vitamin and combinations 39 55

Lactazar Sep08 A15A - appetite stimulants 1 2

Neosmectine Jan08 A07B - intestinal absorbent antidiarrhoeals 41 61

Rx

Combilipen Feb08 A11D3 - (injections) - B1 vitamin and combinations 25 39

Octolipen May08 A05B0 - hapatic protectors 187 250

Neupomax Jun08 L03A1 - colony-stimulating factors 13 13

Formetin Sep08 A10B2 - biguanide antidiabetics 19 28

Bloctran Mar08 C09C0 - antgiotensine-2 antagonists plain 19 29

Source: Company

New products for 2009

Product Date Description

ATC value,

US$ mln

Complivit Anti-stress Jun09 A11A - multivitamins with minerals 252

Complivit Siyanie Sep09 A11A - multivitamins with minerals 252

Complivit Diabetes Jun09 A11A - multivitamins with minerals 252

Mildronate, ampules Aug09 C01D - coronary therapy excluding calcium antagonists and nitrites 113

Traneksam Sep09 B02A - antifibrinolytics 3

Complivit Woman 45+ Nov09 A11A - multivitamins with minerals 252

Complivit Active (Chewing), 3-10 years Nov09 A11A - multivitamins with minerals 252

Codelac Broncho, syrup Dec09 R05D - antitussives 110

Codelac Broncho, tablets Jun09 R05D - antitussives 110

New Products in 2009

Launched

Launched

Launched

Launched


Codelac Broncho, tablets Jun09 R05D - antitussives 110

Magnelis B6 Apr09 A12C - other mineral supplement 36

Zinocap, aerosol Sep09 D05A - topical antipsoriasis product 22

Zinocap, cream Sep09 D05A - topical antipsoriasis product 22

Launched

Contacts

JSC PharmstandardLikhachevsky drive, 5 «B» Moscow region,

Dolgoprudny, Russia, 141700.Tel/Fax: (495) 970-0030/32

www.pharmstd.ru


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 connectionwith, any contract or commitment or investment decision whatsoever.

The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, thefairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of Augment Investments Limited (the “Selling Shareholder”) or the Company or any of theirrespective affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwisearising in connection with the presentation.

This presentation is only for persons having professional experience in matters relating to investments and must not be acted or relied on by persons who are not Relevant Persons (as defined below).Solicitations resulting from this presentation will only be responded to if the person concerned is a Relevant Person.

This presentation and its contents are confidential and must not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person, whether or not such person is aRelevant Person. Failure to comply with this restriction may constitute a violation of applicable securities laws. If you have received this presentation and you are not a Relevant Person you must return itimmediately to the Company. This presentation does not constitute a recommendation regarding the securities of the Company.


This presentation is not a public offer or advertisement of Securities in the Russian Federation and is not an invitation to make offers to purchase any Securities in the Russian Federation, and must not bepassed on to third parties or otherwise be made publicly available in Russia. The GDRs have not been and will not be registered in Russia and are not intended for “placement” or “circulation” in Russia.

This presentation includes 'forward-looking statements'. These statements contain the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning. All statements other thanstatements of historical facts included in this presentation, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for futureoperations (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 orimplied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment inwhich the Company will operate in the future. These forward-looking statements speak only as at the date of this presentation. Each of the Company and the Selling Shareholder and their respective agents,employees and advisers, expressly disclaims any obligation or undertaking to update any forward-looking statements contained herein.

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 not separately sourced is from Company data .

Market information provided by Pharmexpert MRS in retail pr ices.

pharmstandard – leading russian pharmaceutical company

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