Pharmstandard profit rises 50% in H1, beating forecast
MOSCOW. Aug 31 (Interfax) - Russian pharmaceutical maker Pharmstandard posted a net profit of 4.19 billion rubles in the first half of 20-11 under International Financial Reporting Standards (IFRS), the company said in a statement.
Analysts at investment companies and banks told Interfax the net profit in the six months would be 3.637 billion rubles.
Revenue was up 60% year-on-year to 18.45 billion rubles and EBITDA rose 42.3% to 5.446 billion rubles.
Sales revenue from over the counter medications (OTC) went up by 17% to 6.642 billion rubles while revenue from sales of prescription products (Rx) increased by 3.2% to 1.588 billion rubles.
Sales revenue from vital and essential drugs (VED products) came to 12.078 billion rubles, accounting for 65.5% of total sales revenue.
Total revenue from sales of other producers' medications accounted for 52.9% of total revenue from pharmaceuticals, at 9.754 billion rubles. Total sales of medical equipment and disposable products went up by 7.7% to 271.1 million rubles.
The statement said: "In 2011, within the framework of a new project with F. Hoffman-La Roche Ltd., the Company began filling and packaging of Mabtera and Pulmozyme at the OJSC "Pharmstandard-Ufavita" production facilities." Sales of these medications came to 4.177 billion rubles and 819.5 million rubles in the first half of 2011, respectively.
Capex for the development of the group's production and warehousing capacity (such as the construction of new warehouse space and modernization of production capacity at OJSC Pharmstandard-Medicines and OJSC Pharmstandard-Ufavita) came to 731 million rubles.
Construction of a section of the production of cytostatic drugs at Pharmstandard-Ufavita in April 2011. The main goal is the launch of production of a wide range of medications for treating oncological diseases.
The statement said: "In July 2011, a complete production cycle of preparation Mildronate was launched at the aseptic fill facilities of OJSC Pharmstandard-Ufavita. Production began according to schedule agreed on by two leading pharmaceutical companies, JSC Grindeks and OJSC Pharmstandard. By the end of 2011, 900 thousand packages of Mildronate are expected to be manufactured as per productions plan."
Net cash flow in the first half came to 1.847 billion rubles.
The Pharmstandard group paid 181.8 million rubles in the first half for 55% in Ukrainian company Biolek. In accordance with the transaction's contract, 184.1 million rubles was transferred as prepayment in the fourth quarter. The group paid 484.1 million rubles for acquiring shares in OJSC Grindeks in the first half, which were sold in the second have.
The company paid off a syndicated loan from Citi in the first half, which was raised in 2006, as well as 5.474 billion rubles in compensation for bought back shares in Pharmstandard by subsidiary Pharmstandard-Medicines in the framework of an offer announced in January 2011.
