OREANDA-NEWS. On June 19, 2007 OAO VEROPHARM [RTS:VRPH, MICEX:VRFM] announced 2006 financial results in accordance with the International Financial Reporting Standards, reported the press-centre of OAO VEROPHARM.

Sales

Consolidated sales grew 26,6% y-o-y in 2006 and reached $100,5 million.

In 2006, sales of VEROPHARM’s finished goods reached USD 99,0 million.*

The share of prescription drugs in VEROPHARM’s sales increased from 45,4% in 2005 to 52,6% in 2006. The share of other product groups decreased: in adhesive bandages from 24,6% to 21,0%, in over-the-counter drugs from 9,0% to 8,3%, and in traditional medicines portfolio from 19,2% to 16,7% in 2006.*

VEROPHARM sales as part of the Federal Reimbursement Program (DLO) came to USD 6,2 million in 2006, accounting for 6% of the Company’s sales.

Profits

VEROPHARM’s gross profit grew 27,9% to $60,1 million in 2006. The gross profit margin increased from 59,2% to 59,8% in 2006.

Segment-wise the gross profit margin in 2006 increased y-o-y as follows: prescription drugs - from 72,6% to 74,1%; over-the-counter medicines - from 48,7% to 54,3%; traditional drugs - from 32,1% to 37,4%. The gross profit margin in the adhesive bandages segment decreased from 64,5% to 59,6%.*

The Company’s EBITDA was up 20,3% at $28,9 million, and the EBITDA margin for 2006 amounted to 28,7%.

Net profit increased 14,5% y-o-y in 2006 and totaled $18,4 million.

Debt

In 2006 VEROPHARM’s total debt reached $18,7 million.

* hereinafter financials are as per OAO VEROPHARM management accounts.