OREANDA-NEWS. Pharmstandard OJSC (LSE: PHST IL, RTS: PHST RU) (further “Pharmstandard” or the “Company” announces its unaudited 9M/3Q2013 sales results.

9M/3Q2013 sales data includes numbers for Pharmapark LLC, Biomed named after I.I. Mechnikov OJSC and LEKKO CJSC acquired in 2012 (further “New Companies”).

As of January 1, 2013 100% of “Pharmstandard-Medtechnika” LLC sales are included into the Company's revenue. Previously they were accounted in proportion to Company's share in its capital.

Key sales highlights.

• 9M2013 organic pharmaceutical sales reached RUR16 463m demonstrating RUR2 661m or +19.3% y/y growth, compared to RUR13 802m last year

• Pharmaceutical products and medical equipment accounted for 97.6% and 2.4% of the Company's total 9M2013 sales, respectively

• 3Q2013 organic pharmaceutical sales reached RUR6 914m demonstrating RUR883m or +14.6% y/y growth, compared to RUR6 031m in 3Q2012

• 9M2013 third party products sales (further “TPP”) reached RUR10 678m, falling -32.6% or RUR5 163m y/y vs RUR15 842m in 3Q2012

• Pharmstandard 9M2013 total sales reached RUR28 567m (-7.6%/-RUR2 335m)

3Q2013 key highlights and developments

Over-the-counter spin-off.

On September 27, 2013 Pharmstandard held an EGM to decide on the reorganization of the Company by spin-off of a new public joint-stock company (“Reorganization”) and to elect the Board of Directors of the company formed in the result of spin-off.

Taken together, the attending shareholders who took part in the EGM through a collective meeting with attendance by the shareholders to discuss the agenda issues and to make a resolution on the issues put to vote, owned 33 366 951 votes or 88.2896% of the Company's voting shares.

The Reorganization was approved by 94.9010% of the shares owned by the voters and the Board of Directors was elected. The full name of the newly created company was defined as Public Joint Stock Company “OTCPharm” (“OTCPharm”).

Shareholders who voted negatively or did not vote regarding reorganization of the Company are entitled to demand Buyout of all or some of their ordinary registered shares in the Company in the procedure stipulated by the laws of the Russian Federation.

Bever Pharmaceutical PTE LTD acquisition.

On August 17, 2013 Pharmstandard held an EGM which approved the acquisition of Bever Pharmaceutical Pte Ltd (“Transaction”).

The Company's strategic rationale for the Transaction includes securing a long-term fixed-cost supply of critical active pharmaceutical ingredients for two flagship OTC brands Arbidol® and Aphobazolum® as well as significantly increasing the Company's profitability.

Bever is now a part of Pharmstandard Group and will be included into OTCPharm perimeter of operations.

Cellthera Pharm LLC

Cellthera Pharm LLC - a new Pharmstandard subsidiary was registered on August 28, 2013 where Pharmstandard holds 75% share in capital. Cellthera Pharm will focus on “individual medicine” - production of personalized therapeutics for the treatment of articular cartilage defects in human tissue through a three-dimensional matrix of autologous transplantation of cartilage cells and immunotherapy of cancer and infectious diseases - renal cell carcinoma (RCC ).

Organic sales overview.

9M2013 organic pharmaceutical sales amounted to RUR16 463m (+19.3%) vs RUR13 802m in 9M2012 with 72% accounted for by OTC products and 28% by Rx products.

9M2013 Organic prescription product (Rx) sales in 9M2013 grew by RUR899m (+24.7%) to reach RUR4 543m. Key growth drivers were Altevir®, Therpincodum® and Phosphogliv®.

Organic over-the-counter (ÎÒÑ) product sales in 9M2013 went up to RUR11 920m (+17.3%). 9M2013 Arbidol® sales demonstrated 20% growth vs 9M2012 reaching RUR3 038m in sales. Aphobazolum demonstrated significant sales results as well : +39%/RUR228m reaching RUR819m in 9M2013 sales.

9M2013 OTCPharm future portfolio sales reached RUR10 177m demonstrating 19% growth y/y vs RUR8 544m.

Third Party Products sales overview.

For a better visibility we move TPP sales into a separate section splitting the revenue into 2 parts - government procurement and commercial sales.

Government procurement. 7 Nosologies Federal Program.

Historically the sales leader of this segment was Velcade® with 9M2012 total sales of RUR7 147m. The majority of 2013 auctions was moved to 4Q2013 bringing Velcade® share in Company's sales to its minimum - RUR453m.

Total 9M2013 TPP sales excl. Velcade® demonstrate 14% growth (+RUR622m) reaching RUR10 225m.