OREANDA-NEWS. On 30 April 2009 OJSC "VEROPHARM" [RTS:VRPH, MICEX:VFRM] announced preliminary data on its 1st Quarter 2009 sales and operational performance indicators according to the management accounts.

Sales

In Q1 2009 sales of Veropharm’s finished goods decreased by 22% compared to the same period in 2008, reaching USD 26.1 million.[1]

Rx drugs sales amounted to USD 16,2 million in Q1 2009, a 22% decrease in comparison with Q1 2008. The Rx drugs sales accounted for 62% of total sales.[2]

In Q1 2009 traditional drug sales came to USD 1,4 million, which represents 51% decrease as compared to Q1 2008, and made up 5% of total sales.

Adhesive bandages sales came to USD 5,6 million in Q1 2009, a 16% decrease as compared to Q1 2008. The share of adhesive bandages in total sales increased to 22%.

OTC drugs sales amounted to USD 2,9 million in Q1 2009, a 2% decrease in comparison with Q1 2008, their share in total sales being equal to 11%.

Veropharm sales as part of the Federal Reimbursement Program (FRP) came to USD 0,5 million in Q1 2009, accounting for 2% of the Company’s sales. By the results of Q1 2008, FRP sales were USD 0,9 million, or 2,6% of the Company’s total sales. [2]

Sales within the Russian Federation accounted for 98% of the Company’s sales in Q1 2009.

Rx drugs segment

Total sales of the five most popular prescription drugs by the results of Q1 2009 amounted to USD 7 million, or 43% of sales in the prescription drugs segment and 27% of the Company’s total finished goods sales.

The  five top-selling Rx drugs in  Q1 2009 results include:

Paclitaxel—LENS (Paclitaxel, ATC[3] “Antineoplastic and immunomodulating agents”) 13% of sales in the prescription drugs segment;

Bilumid (Bycalutamide, ATC "Antineoplastic and immunomodulating agents")10% of sales in the prescription drugs segment;

Cerepro (Choline alfoscerate, ATC “Central nervous system”) 8% of sales in the prescription drugs segment;

Irunine (Itraconazole, ATC “General anti-infectives systemic”) 6% of sales in the prescription drugs segment;

Amigrenin (Sumatriptan, ATC “Central nervous system”) 5% of sales in the prescription drugs segment.

Traditional drugs segment

The decline in  traditional drugs segment sales is caused by the closure of the production of ampoules of vacuum filling and the company’s plans to gradually increase  the share of high marginal products.

Total sales of the five most popular traditional drugs by the results of Q1 2009 amounted to USD 0,9 million, or 46% of sales in the traditional drugs segment and 4% of the Company’s total finished goods sales.

The five top-selling traditional drugs in  Q1 2009 results include:

Magnesium sulfate (Magnesium sulfate; ATC “Agents affecting blood and blood forming organs”) 25% of sales in the traditional drugs segment;

Pyridoxine  hydrochloride (Pyridoxine; ATC “Alimentary tract and metabolism”) 16% of sales in the traditional drugs segment;

Riboxin (Inosine;  ATC “Cardiovascular system”) 10% of sales in the traditional drugs segment;

Dexamethasone (Dexamethasone;  ATC “Systemic hormonal preparations”); 8% of sales in the traditional drugs segment;

Dimedrole (Diphenhydramine;  ATC “Respiratory system”) 8% of sales in the traditional drugs segment.

Adhesive bandages segment

In Q1 2009, the sales structure for adhesive patches did not change significally:

Conventional reel and bacterial adhesive bandages; 47% of sales in the adhesive bandages segment for Q1 2009 (57% for Q1 2008);

Therapeutic patches (capsicum and corn plasters); 36% of sales in the adhesive bandages segment for Q1 2009 (27% for Q1 2008); (increase in the share is stipulated by increased sales of capsicum plasters, more than 2 times — 135%);

Individual use branded patches (“Uniplast” and “Smart”); 17% of sales in the adhesive bandages segment for Q1 2009 (16% for Q1 2008).

OTC drugs segment

OTC drugs segment is characterized by a high degree of consolidation — the five top-selling medicines are accounted for 99% of sales:

Xilen (Xylometazoline; ATC “Respiratory system”);

Slabilen (Sodium picosulfate;  ATC “Alimentary tract and metabolism”);

Motilak (Domperidone; ATC “Alimentary tract and metabolism”);

Vitasharm and Vitatress (Polyvitamins; ATC “Alimentary tract and metabolism”);

New drugs registration

In Q1 2009, Veropharm received registration for the new drugs:

Meropenem (Meropenem), ATC "General anti-infectives systemic");

Ekostimulin (Human Chorionic Gonadotrophin, ATC "Genito-urinary system and sex hormones ");

Additionally, 25 more drugs and 10 more medical supplies are currently at different stages of the registration process. 24 drugs  medical supplies are being registered as own development products, and one by the contract as outsourcing. 5 medical supplies are being registered as own development products, and 5 others by the contract as foreign ready-to-use medical supplies.

Debt

As of the end of Q1 2009 Veropharm’s debt amounted to USD 25,3 million that represents less than 20% of net assets.

[1] according to unaudited management accounts of OJSC “Veropharm”.

[2] % — percent of finished goods sales.

[3] ATC — anatomico-therapeutico-chemical group.