OREANDA-NEWS. On 29 April 2009 OJSC "VEROPHARM" [RTS:VRPH, MICEX:VFRM] announced 2008 financial results in accordance with the International Financial Reporting Standards(audited).

Sales

Sales in 2008 grew by 24% and reached USD 172.9 mln in comparison with USD 139.5 mln. in 2007.

The share of Rx drugs sales in 2008 increased to 66% as compared to 60% in 2007. The share of OTC drugs remained unchanged at 8% as compared to year before. Adhesive bandages sales share in finished goods remained unchanged at 18% as compared to year before. Portfolio of traditional drug sales also demonstrate tendency for a decrease of share in sales — the decrease from 14% to 8%.*

The sales growth in 2008 in comparison with 2007 is attributed mostly to the following factors:

Significant growth of the top-selling drugs:

Bilumid (Bycalutamid) — 102%

Cerepro (Holina Alfostserat) — 114%

Irunin (Itrakanazol) — 65%

Taytax (Docetaxel) — 97%

Xilen (Xylometazoline) — 37%

Slabilen (Sodium picosulfate) — 75%

Motilak (Domperidone) — 28%

Poludan (Poly-A & Poly-U) — 23%

Launch of new products in 2008, sales of which reached 3.5% of Company’s sales: Vero-Anastrozol (Anastrozol); Vero-Kladribin (Klaritromicine); B-Xicam (Meloxicam); Adepress, (Paroxetin); Spiramycin-Vero (Spiramycin); Siozam (Cytalopram); Vero-Amiodaron (Amiodaron).

OJSC “Veropharm” sales in the 2008 FRP program amounted to USD 4.2 mln which makes 2% sales of the Company.*

Profit

In 2008 the gross profit of OJSC “Veropharm” increased by 31% and reached USD 113.9 mln compared to USD 86.7 mln in 2007. Gross margin increased to 65.9% as compared to 62.2% in 2007.

Gross margin of finish goods in 2008 66.1% against 62.3% in 2007. The increase of the gross margin materialized in the following product segments: Rx drugs — from 71.% to 73.8%; OTC drugs — from 57.6% to 68.8%, adhesive bandages — from 55.5% to 56.0%. The gross margin in the traditional products — from 36.0% to 21.0%.

In 2008 EBITDA increased by 24% and reached USD 52.5 mln which makes 30,4% of Company’s sales.

The net profit grew by 33% to USD 36.9  mln which makes 21.3 % of Company’s sales (an increase of 1,4 %  in comparison with 2007).