Pharmstandard Announces Sales Results for 2011
OREANDA-NEWS. February 15, 2012. Pharmstandard JSC (LSE:
2011 Key Highlights
· In 2011 Pharmstandard's sales enjoyed a steady growth increasing by 43.7%, or RUR 12,968.9 million, and amounted to RUR 42,655.5 million vs. RUR 29,686.6 million in 2010.
· As in the previous year, Arbidol® remains the best performing brand on pharmaceutical market in Russia. Sales of Arbidol® in 2011 amounted to RUR 4,011 million, a reduction of 28.2% or RUR 1,579 million vs. RUR 5,589 million in
Simulation of Company's organic sales excluding Arbidol® indicates that the Company's revenue from sales of pharmaceutical products in 2011 would have been RUR 15,613.4 representing an increase of 15% (RUR 2,044.5 million) in relation to the previous year (RUR 13,572.9 million). Organic sales of Company's products including Arbidol® sales amounted to RUR 19,624.2 million, an increase of 2.4% (RUR 461.9 million).
· Revenue from sales of Vital and Essential Products amounted to RUR 24,190.5 million or 57.4% of the total revenue of the Company in 2011.
· Sales of Third Party Products (TPP) in 2011 increased by 119.6% or RUR 11,832.1 million totalling RUR 21,726.0 million. The share of TPP in overall 2011 sales was 51.6% (33.3% in 2010). The Company supplied 23,532 thousand packs of TPP; in 2011, the increase in volume terms amounted to 116.1% or 12,664.1 thousand packs vs. the 2010 figures (10,887.9 packs).
· Revenue of Phramstandard-Biolek PJSC in 2011 totalled RUR 543,4 million. The Company's Management views this as a positive development, in line with the expectations regarding performance of the company one year after the announcement about the purchase of 55% of Biolek PJSC (
· Sales of medical equipment in 2011 amounted to RUR 763.6 million, a considerable increase (21% or RUR 133.1 million) vs. the same period a year ago. The overall increase in the segment of medical equipment resulted primarily from the expansion of the line of products sold through Pharmstandard-Medtechnika LLC, a joint venture set up for sales of medical equipment.
The Pharmaceutical Market in
· In 2011 Pharmstandard was in the third position among the TOP10 pharmaceutical corporation in
· Pharmstandard came
· The value of the Russian pharmaceutical retail sector in 2011 was RUR 462,3 million, an increase of 14.2% or RUR 57.5 million vs. the 2010 figures. The volume of the retail sector in 2011 amounted to 4,53 billion packs, representing an increase of 3% vs. the 2010 figures (4,39 billion packs). It is worth noting that this growth rate is significantly lower than that for 2010/2009 (+11%). Apart from that, the total growth in volume terms for 2011/2010 (+137 million packs) is three times lower than the growth figures for 2010/2009.
· In 2011, the Rx segment grew by 18% in value terms and by 8% in volume terms in relation to the figures for the previous year.
OTC segment increased by 11% in value terms and by 1% in volume terms.?
For this reason, it is possible to say that the Rx segment was the growth driver in 2011 (60% of the growth structure in value terms vs. 50% in 2010). The share of the Rx products in value terms amounted to 50% (in 2010 it was 48%). 
· Our analysis of the Pharmexpert database shows that the Vital and Essential Products segment of the Russian pharmaceutical market in 2011 increased by 12%, a more significant growth in comparison to 2% in 2010/2009. The growth in volume terms in the period from 2011 to 2010 was 7 times higher in relation to the corresponding figures for the period from 2010 to 2009.
In 2011, the share of the Vital and Essential Products segment was 35% in value terms and 39% in volume terms. Apart from that, the Vital and Essential Products segment enjoyed a much higher rate of growth in comparison with the products not included in the list of Vital and Essential Products, namely +7% vs. +1%. This leads us to the conclusion that the Vital and Essential Products segment is becoming the driver of growth in volume terms: 85% of the growth structure (+114 million packs of the total number of 137 million packs); while in 2010/2009 the share of Vital and Essential Products in the growth structure amounted to no more than 38%.
Rx products are the growth drivers within the Vital and Essential Products segment; their increase in 2011 vs. 2010 amounted to 14% in value terms and 10% in volume terms.
Pharmstandard's sales results in 2011.
According to the non-audited results (IFRS), the Company's revenue in 2011 grew by 41.9% and amounted to RUR 42,113.8 million, an increase of RUR 12,427.2 million vs. RUR 29,686.6 million a year earlier. The share of sales of pharmaceutical products in the Company's overall revenue amounted to 98.2%. In the overall sales structure, organic sales comprise 45.7%, Third Party Products (TPP) account for 51.6% and other products for 0.9%. Pharmstandard's revenue from sales of medical equipment amounted to 1.8% of Company's total sales.
· Sales of pharmaceutical products (including Third Party Products) amounted to 42.3% or RUR 12,294.1 million; total sales amounted to RUR 41,350.2 million.
· Organic sales (excluding TPP) amounted to 2.4% or RUR 461.9 million; total sales amounted to RUR 19,624.2 million.
Slowing down of the rate of organic sales has been caused primarily by lower sales of Arbidol® due to the stable epidemiological situation during 2011 which lead to a reduced consumption of Antiviral and immunomodulatory products. This was a tendency common for all participants of the Russian pharmaceutical market, without exception.
It is worth mentioning that a simulation of Company's sales excluding Arbidol® indicates that the Company's organic revenue from sales of pharmaceutical products in 2011 would have been RUR 15,613.4 representing an increase of 15% (RUR 2,044.5 million) in relation to the previous year (RUR 13,572.9 million).
· Sales increase of Third Party Products amounted to 119.6% or RUR 11,832.1 million. Their total sales amounted to RUR 21,726 million.
Rx products (Company's organic sales of )
In 2011, Pharmstandard enjoyed great sales results in the segment of Rx products which have won trust of the inhabitants of