Analyst & Investor Day - Фармстандарт · About Pharmstandard (based on 1H2012 results) • №1 Company among domestic pharmaceutical companies • №3 Company overall

PHARMSTANDARD – LEADING RUSSIAN PHARMACEUTICAL COMPANY

Analyst & Investor DaySeptember 13, 2012

Analyst & Investor Day September 13, 2012

Disclaimer and Confidentiality Requirements

This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of OJSC Pharmstandard (the “Company”)or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connectionwith, any contract or commitment or investment decision whatsoever.

This presentation has been prepared solely for use in connection with the possible offering of ordinary shares (the “Shares”) and global depositary receipts representing shares (“GDRs” and, together with theShares, the “Securities”) in the Company (the “Offering”). This document is an advertisement and not a prospectus and any purchase of Securities in the Offering should be made solely on the basis ofinformation contained in the prospectus and any supplemental prospectus to be published in respect of the Offering. The information contained in this presentation has not been independently verified. Norepresentation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinionscontained herein. None of Augment Investments Limited (the “Selling Shareholder”) or the Company or any of their respective affiliates, advisors or representatives shall have any liability whatsoever (innegligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.

This presentation is only for persons having professional experience in matters relating to investments and must not be acted or relied on by persons who are not Relevant Persons (as defined below).Solicitations resulting from this presentation will only be responded to if the person concerned is a Relevant Person.

This presentation is not for distribution in, nor does it constitute an offer of securities in the United States, Canada, Australia or Japan. Neither the presentation nor any copy of it may be transmitted into theUnited States, its territories or possessions, or distributed, directly or indirectly, in the United States, its territories or possessions. Any failure to comply with this restriction may constitute a violation of USsecurities laws. The presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. TheCompany has not registered and does not intend to register any portion of the Offering in the United States or to conduct a public offering of any securities in the United States.

This presentation is made to and directed only at (i) persons outside the United Kingdom, (ii) qualified investors or investment professionals falling within Article 19(5) and Article 49(2) (a) to (d) of the FinancialServices and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), and (iii) high net worth individuals, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to(d) of the Order (such persons collectively being referred to as "Relevant Persons").

This presentation and its contents are confidential and must not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person, whether or not such person is aRelevant Person. Failure to comply with this restriction may constitute a violation of applicable securities laws. If you have received this presentation and you are not a Relevant Person you must return itimmediately to the Company. This presentation does not constitute a recommendation regarding the securities of the Company.This presentation is not a public offer or advertisement of Securities in the Russian Federation and is not an invitation to make offers to purchase any Securities in the Russian Federation, and must not bepassed on to third parties or otherwise be made publicly available in Russia. The GDRs have not been and will not be registered in Russia and are not intended for “placement” or “circulation” in Russia.This presentation includes 'forward-looking statements'. These statements contain the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning. All statements other thanstatements of historical facts included in this presentation, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for futureoperations (including development plans and objectives relating to the Company's projects and services) are forward-looking statements. Such forward-looking statements involve known and unknown risks,uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from results, performance or achievements expressed orimplied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment inwhich the Company will operate in the future. These forward-looking statements speak only as at the date of this presentation. Each of the Company and the Selling Shareholder and their respective agents,employees and advisers, expressly disclaims any obligation or undertaking to update any forward-looking statements contained herein.

The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice.All information not separately sourced is from Company data.

2

Today’s Presenting Team Pharmstandard OJSC

3

Dr. Igor KrylovCEOChairman of the Management Board Member of the Board of Directors

Elena Arkhangelskaya

CFO

Dr. Alexander Obuhov,

Medical Director


We are dedicated to the development and manufacture of advanced pharmaceutical products, which meet healthcare requirements and

patients’ expectations.

The company is committed to the following guiding principles:

Innovation – speedy implementation of cutting-edge scientific developments in medicine and pharmacology in close cooperation with Russian and international scientists.

Efficiency – implementation of business process management procedures based on an efficient and balanced combination of technical and scientific innovations with a vast practical experience acquired over the years of extensive involvement in pharmaceutical market.

Responsibility – the use of international administrative and technological standards as part of the company’s responsible consumer policy. Compliance with ecological standards and commitment to the reduction of industrial effect on the environment in the context of the company’s responsibility to future generations.

Dr. Olga Mednikova

Chief Sales and Marketing Officer

Kudlay Dmitry,

Biotechnology sales and marketing director

Vassily IvanovBusiness DevelopmentPHD, MBA

Analyst & Investor Day September 13, 2012 4

Pharmstandard at a glance Key events Mission & strategy Pharmaceutical market

Igor KrylovCEO Pharmstandard OJSC

About Pharmstandard (based on 1H2012 results)

• №1 Company among domestic pharmaceutical companies

• №3 Company overall in Russian pharmaceutical market

• 4 pharmaceutical production sites and 1 medical equipment and disposables plant;

• Capacity – more then 1,7 billion packs per year;

• Russian standards compliant facilities & 6 lines on Kursk are EU GMP compliant;

• More than 250 pharmaceutical products;

• More than 5,600 employees

• 765 units in sales force;

• 6 products in Top 20 best selling domestic brands in Russia

Arbidol® №1, Pentalgin® №3, Complivit® №9 Afobazol® №17, Amixin®№18, Flucostat® №19;

• 2 products in Top 20 best selling brands in Russia

Arbidol® №8, Pentalgin® №14;

• Launched 3 new products: Next®, Cyclovita® , Neosmektine® (powder with new taste).

• Revenue amounted to RUR 16,167.0 million;

• Gross profit amounted to RUR 6,228.0 million or 39% of revenue;

• EBIDTA² amounted to RUR 4,125.8 million or 26% of revenue;

• Net profit amounted to RUR 3,074.6 million or 19% of revenue.

²EBIDTA is defined as earnings before interest, taxes, depreciation and amortization and foreign exchange gain (loss).¹Source CMR «Pharmexpert» Center of Marketing Researches (measured by sales)

5Analyst & Investor Day September 13, 2012

Source: Company data, IFRS FS * – excluding TPP products.

Structure of Sales 1H2012


Pharmaceutical products97.6% of 1H 2012 salesRUR 15,786.4 million

OTC68.7% of organic sales

RUR 5,510.9 million

- 17.4% +24.7% +70.0% - 20.4%

TPP

49.2% of pharmaceutical sales

RUR 7,763.6

Rx28.2% of organic sales

RUR 2,259.6 million

Medical Equipment2.4% of 1H 2012 sales

RUR 380.6 million

Organic sales (Company’s own products)

50.8% of pharmaceutical products salesRUR 8,022.8 million

Total Sales in 1H2012 amounted to RUR 16,167.0 mln

6

API1.6% of organic sales

RUR 252.2 million


Pharmstandard Strategy:1.Promote our market-leading brands to drive sales growth and profitability• 6 products in Top 20 best selling domestic brands in Russia • 2 products in Top 20 best selling brands in Russia

2. Launch new products on a regular basis• 10 new products will be launched in 2012 3. Expand sales and marketing effort• Marketing, advertising and promotion expenses amounted to RUR 998. 7 million or 50.2% of the total S&D amount, representing

an increase of RUR 339.6 million or 51.5% vs 1H2011 (RUR 659.1 million).

4. Grow through acquisitions and realize synergies• Acquisition of 50.1% stake in BIGPEARL TRADING LIMITED (Cyprus).

Controlling stake in Biomed named after I.I. Mechnikov OJSC , Pharmapark LLC• FAS allowed "Pharmstandard" acquire 100% stake of pharmaceutical company Lecco LLC.5. Cooperation with leading pharmaceutical companies • 5 new collaborations projects with

Chiesi – distribution of 3 products: Atimos®, Clenil®, Foster®. (Therapeutic Areas -Respiratory pathologies)Celgene - distribution of Vidaza®(for the treatment of all FAB subtypes of MDS)Servier – signed contract for the full cycle production of Eurespal® (for the treatment of the upper and lower respiratory tract)Hoffmann-La Roche - received approval for the full cycle production of Mabthera® (treatment of lymphomas).Johnson & Johnson - signed contract for the full cycle production of Incivo® (for the treatment of genotype 1 chronic hepatitis C in adult patients with compensated liver disease ) and Intelence® (for the treatment of human immunodeficiency virus type 1 (HIV-1) infection in antiretroviral treatment-experienced adult patients).

6. Continue to actively control costs7. Exploit opportunities arising from government funding of healthcare

Sales of TPP (under open auctions) will amount roughly RUR 22 billion by the end 2012

Mission we are dedicated to the development and manufacture of advanced pharmaceutical products, which meet healthcare requirements and patients’ expectations.

Pipeline 2012


Name of product: Therapeutical segment \ productstatus:

Sales value(RUR mln)

Scheduled date of production

commencementNext®

(coated tablets)

M01A - ANTI-RHEUMATICS, NON-STEROIDAL

OTC

16, 443 Production launched in March 2012

Maxicold® (coated tablets)

R05A - COLD PREPARATIONS WITHOUT ANTI-INFECTIVES

OTC

15,452September 2012

Akorta® (coated tablets)

C10A -hypolipidemic agent \ Rx

5,835 September 2012

Cyclovita® (coated tablets)

Biologically active food supplement \ OTC 0.380 Production launched in July 2012

Neosmektine® (powder with new taste)

A07B – antidiarrheal agent \ OTC 3,654 Production launched in May 2012

Glimepiride(4 tablets)

А10B - hypoglycemic agent \ Rx 6,297November 2012

Octolipen® (600 tablets)

А16A - metabolic agent \Rx

7.550November 2012

Complivit® Ophtalmo for children(poweder suspension)

Biologically active food supplement \ OTC 1.420

March 2013

Codelac®NEO (drops) R05D- central antitussive agent \ OTC 1.154November 2012

Codelac®NEO (syrup) R05D-central antitussive agent \ OTC 1.154November 2012

Bromgeksin syrup (without alcohol) R05C- expectorate mucolytic agent \OTC 14.453 November 2012

What is going to change for Pharmstandard following Russia’s entry into the WTO?


• Starting from the third quarter of 2012, the duties levied by Rospatent (the Federal Service on Intellectual Property, Patents & Trademarks of Russia) on Russian pharmaceutical companies have increased and we have effectively been placed on a par with foreign companies.

• The reduction of customs duties for foreign medicines from 15 – 5% to 6.5 – 5% which will take place during a transitional period. Simultaneously, customs duties for medical equipment and medical substances will undergo reduction at a significant rate (up to 2 – 3%).

• The reduction in prices for substances and APIs (active pharmaceutical ingredients) will bring about an insignificant positive effect for Russian pharmaceutical companies.

• We do not see any pre-conditions for an abolition of the 15% price preference for Russian players

• Data Exclusivity. According to the Federal Law No. 271-FZ, dated 11 October 2010, On Introduction of Changes in the Federal Law ‘On the Circulation of Pharmaceutical Products’, paragraph 6 of article 18 is applied to legal relationships established after the day the Protocol about the Russian Federation joining the WTO came into force. If, following the period of six years from the date of registration of an original pharmaceutical product in the territory of the Russian Federation, the term of its patent protection expires, we have no right to refer to the data regarding the pre-clinical and clinical trials of the original product, while preparing documentation on such trials with respect to a generic product. Thismeans that all such trials should be conducted by us fully and independently. Usually, the term of patent protection exceeds six years from the date of registration of the original product and the work on generics starts after the expiration of such term.

Russian pharmaceutical market structure 1H2012vs1H2011


Changes 2012VS2011 Value (RUR, bln)

Retail +48.4 (+22%)

Hospital -3.6 (-4.2%)

FRP -2.2(-5.6%)

Market Share – All SegmentsPHST N3

Pharmstandard market position (based on 1H2012 results and excluding sales of TPP )

Source: CMR “ Pharmexpert”

Market Share – Retail SegmentPHST N 3

Pharmstandard keeps stable leading positions on the market11Analyst & Investor Day September 13, 2012

NOVARTIS6.9% (7.5%) SANOFI-

AVENTIS5.5% (5.4%) PHARMSTANDARD

3.5% (3.8%)

TEVAPHARM. LTD.3.4% (3.3%)

BAYERHEALTHCARE

3.1% (2.9%)

ROCHE3.0% (3.2%)

BERLIN-CH/MENARINI

2.8% (2.8%)

MERCK SHARP& DOHME

2.5% (2.1%)

NYCOMED2.5% (2.6%)

GEDEONRICHTER

2.4% (2.5%)

OTHER IMPORT(442 COMP)

38.9%

OTHER LOCATION(535 COMP)

25.4%

NOVARTIS7.3% (7.1%) SANOFI-

AVENTIS5.2% (5.3%) PHARMSTANDARD

4.5% (5.2%)

BAYERHEALTHCARE

3.6% (3.7%)

BERLIN-CH/MENARINI

3.5% (3.6%)

GEDEONRICHTER

3.0% (3.2%)

NYCOMED2.9% (2.9%)

ABBOTTPRODUCTS2.9% (2.7%)


SERVIER2.8% (2.7%)

OTHER IMPORT(385 COMP)

39.0%

OTHER LOCATION(510 COMP)

22.3%

Russian pharmaceutical market VS PHST dynamics (by value)


+29%

+27%

+29%

+10%

+13%

4,426.26,198.0

10,061.811,543.4

18,653.516,167.0

1H2007 1H2008 1H2009 1H2010 1H2011 1H2012

+40%

+62.3%

+14.7%

+61.6% -13.3%

Russian pharmaceutical market

Pharmstandard

Source: CMR “ Pharmexpert”. Retail prices and Pharmstandard sales results

NOVARTIS

SANOFI-AVENTIS

PHARMSTANDARD

TEVAPHARM. LTD.

BAYERHEALTHCARE

BERLIN-CH/MENARINI

MERCK SHARP& DOHME

NYCOMED

GEDEONRICHTER

TotalMarket

0%

+5%

+10%

+15%

+20%

+25%

+30%

+35%

50.0% 55.0% 60.0% 65.0% 70.0% 75.0% 80.0% 85.0% 90.0% 95.0%

TOP-10 companies: factors of growth

Analyst & Investor Day September 13, 2012Source: CMR “ Pharmexpert”. Retail prices

Gro

wth

dyn

amic

s,1H

’11

vs. 1

H’1

0

Retail sales share, IH’12

In IH2012 the main growth factor for TOP-10 companies was a budget segment of market

(FRP, Hospital)

*Organic sales (excluding TPP)

13

Third Party Products


Brand name: Status: Company name: Type of collaboration: Value of lot, RUR

mln (excluding VAT) Money will be collected in

Mabthera® RX F.Hoffmann-La Roche Tolling and open auctions 1,502 October 2012Prezista® RX Johnson & Johnson Tolling and open auctions 885.3 October 2012Intelence® RX Johnson & Johnson Tolling and open auctions 294.1 October 2012

Coagil® VII RXLLC Generium,

Lekko Open auctions 156.2 September - October 2012

Diaskintest® RXLLC Generium,

Lekko Open auctions 83.6 September 2012

Pulmozyme® RX Hoffmann-La Roche Open auctions 15.5 October 2012

Others TPP:Tolling\open

auctions\distribution\promotion 24.8 October 2012

Total: 2,961.5 October 2012

RX and OTC

1H2012 TPP sales results amounted to RUR 7,763.6 millionPharmstandard won open auctions for supplying pharmaceutical products in the second half of 2012.

Brand name: Status: Company name: Specification: Value of lot, RUR

mln (excluding VAT) Money will be collected in

Phosphoglive® RXOJSC Pharmstandard-

LeksredstvaManufacturing,

promotion,distribution, open auctions14.5 October 2012

Biosulin®H и P RXOJSC Pharmstandard-

UfaVITAManufacturing,

promotion,distribution, open auctions25.4 October 2012

Rastan® RXOJSC Pharmstandard-

UfaVITAManufacturing,

promotion,distribution, open auctions8 October 2012

Total: 47.9 October 2012

Pharmstandard won open auctions for supplying own pharmaceutical products in the second half of 2012.

Third Party Products


Brand name: Status: Company name: Type of collaboration: Value of lot, RUR mln (including VAT)

Money will be collected in

Mabthera® RX F.Hoffmann-La Roche Tolling and open auctions 6,792.0in line with the contract

options in case of we will win this lot

Coagil® VII RXLLC Generium,

Lekko Open auctions 1,306.0in line with the contract


Velcade® RX Johnson & Johnson Open auctions 5,737.0in line with the contract


Pulmozyme® RX Hoffmann-La Roche Open auctions 1,000.0in line with the contract


Others TPP:Tolling\open

auctions\distribution\promotion 0.7

in line with the contract options in case of we will win

this lot Total: 14,835.7

RX and OTC

Open auctions which already were announced and Pharmstandard going to participate, information actual for 29 August 2012.

322.0111.266.745.041.329.928.622.522.420.215.714.312.2

USJapanChina

GermanyFrance

BrazilItaly

SpainCanada

UKRussia

IndiaS.Korea

≈

Market size2011, US$ bln

№ 11

Source: IMS. Whosale prices.

Global trends


+3.4%+3.9%+23.5%+4.8%+2.3%+15.6%+4.1%+6.6%+4.4%+4.2%+15.7%+15.4%+9.4%

USJapanChina

GermanyFrance

BrazilItaly

SpainCanada

UKRussia

IndiaS.Korea

≈

CAGR07-11

№ 2

Source: IMS. Whosale prices.

Global trends


USJapan

China

Germany

France

Brazil

ItalySpain

CanadaUK

Russia

India

S.Korea

+0%

+5%

+10%

+15%

+20%

+25%

0 100 200 300 400 500 600 700 800 900 1 000 1 100

US$per capita

CAGR07-11

Source: IMS

Global trends


Pharmstandard 1H2012 IFSR results

Elena ArkhangelskayaCFOOJSC Pharmstandard


1H 2012- 1H 2011Revenue Breakdown, RUR mln

Sales in OTC segment decreased by 17.4%, Rx segment grew by 24.7%

Source: Company data, IFRS FS


Gross profit organic 58.5%, total business 38.5%


Gross profit


General and Administration CostsSelling and Distribution Costs

Pharmstandard SG&A costs 16.3% of Total Sales


Competitive Cost Structure


Net profit of Total Sales 19.0%, organically 27.4%Effective tax rate in 1h 2012 20.7%


Net Profit Dynamic


EBITDA

EBITDA organic 37.4%, total business 25.5%)


EBITDA


EBITDA Decrease Structure

Capital Expenditure (PPE*) mln RURIFRS basis mln RUR


Consolidated Balance Sheet and CAPEX

CapEx 2005-2008 totals to 3 127 mln RUR

30 Jun 2012

31 Dec 2011

Non-current assets 13 431 12 261Trade receivables* 12 115 14 247Cash and cash equivalents 4 769 5 383Other assets 12 624 11 725Total assets 42 938 43 617Total equity 32 300 30 294Trade and other payables and accruals 9 616 11 235Long-term borrowings and loans 0 0Short-term borrowings and loans 34 733Other liabilities 989 1 400Total liabilities 10 638 13 323Total equity and liabilities 42 938 43 617


Purchase of ordinary shares by its subsidiary


The following table provides information about Pharmstandard shares ownership (13.09.2012).

Augment Investments Limited 54.32%(Ordinary shares and GDR) LSE (GDR) 27.56%RTS-MICEX (Ordinary shares) 9.68%Shares hold by OJSC Pharmstandard-Leksredstva 8.44%

Free float - 45,85%Free float treated as treasury shares for IFRS purposes (8,44% hold by OJSC Pharmstandard-Leksredstva) Total shares: 37 792 603 (100%)1 Ordinary share = 4 GDR

The purchase of ordinary shares reflects the confidence of the management in the

fundamental value of OJSC Pharmstandard’s ordinary shares.

In future, the purchased shares may be used by the group of companies

Pharmstandard in merger and acquisition deals in line with the general development

strategy of the group of companies Pharmstandard.


Olga Mednikova, Chief Sales & Marketing OfficerPharmstandard OJSC Market Trends & Product Overview

Russian pharmaceutical marketStructure by segments – Retail segment domination

Retail268.271%

FRP50.613%

Hosp59.916%

Rur bln, IH'12

Retail2.3489%

FRP0.052%

Hosp0.239%

Units bln, IH'12

Source: CMR “Pharmexpert”. Retail prices.


Retail segment is a main driver of the Russian pharmaceutical market by value and volume

144.2185.5

236.3

304.4336.1

378.7

+29% +27% +29% +10% +13%

IH'07 IH'08 IH'09 IH'10 IH'11 IH'12

Rur bln

Russian pharmaceutical market dynamics (by sales value)



Russian pharmaceutical market demonstrates sustainable growth

Russian pharmaceutical marketStructure by segments – Retail segment – growth driver

219.8

52.863.5

268.2

50.6 59.9

+22% -4% -6%Retail FRP Hosp

IH'11 IH'12Rur bln

Source: CMR “Pharmexpert”. Retail prices


26.2

20.7

13.2 13.011.6 11.5

10.59.5 9.4 9.2

+5% +13% +4%+19% +19% +8% +12%

+33%+8% +10%

NOVARTIS6.9% (7.5%)

SANOFI-AVENTIS

5.5% (5.4%)

PHARMSTANDARD3.5% (3.8%)


BAYERHEALTHCARE

3.1% (2.9%)

ROCHE3.0% (3.2%)

BERLIN-CH/MENARINI2.8% (2.8%)

MERCK SHARP& DOHME

2.5% (2.1%)

NYCOMED2.5% (2.6%)

GEDEONRICHTER

2.4% (2.5%)

I'11 I'12Rur bln

TOP-10 companies growth by value on the total Pharmaceutical market, IH’12 vs. IH’11

Organic sales, excluding third party products *



26.2

20.7

13.2

10.9

13.011.6 11.5

10.59.5 9.4 9.2

+5% +13% +4% +16% +19% +19% +8% +12%+33%

+8% +10%

NOVARTIS6.9% (7.5% )

SANOFI-AVENTIS

5.5% (5.4% )

PHST3.5% (3.8% )

PHST(excl. Arbidol)

TEVAPHARM. LTD.3.4% (3.3% )

BAYERHEALTHCARE

3.1% (2.9% )

ROCHE3.0% (3.2% )

BERLIN-CH/MENARINI

2.8% (2.8% )

MERCK SHARP& DOHME

2.5% (2.1% )

NYCOMED2.5% (2.6% )

GEDEONRICHTER

2.4% (2.5% )

I'11 I'12Rur bln

**


Pharmstandardorganic sales

without Arbidol

Pharmstandardtotal organic sales

Product portfolio, excluding Arbidol® demonstratesthe above-market sales growth



10 49614 030

21 70419 387

23 249

11 228 12 611

3 426

4 886

8 560

7 058

7 082

3 9483 045

+36% +60% -13% +15% +3%2007 2008 2009 2010 2011 I'11 I'12

OTHER PHARMSTANDARD

<< segment growth >>

Rur mlnRur mln ARBIDOL(PHARMSTANDARD)

15%

TERAFLU(NOVARTIS)

11%

KAGOCEL(NIARMEDIC)

8%

ANAFERON(MATERIA MEDICA)

8%

OSCILLOCOCCINUM(BUARON LAB.)

8%ANTIGRIPPIN

(ANTIVIRAL, NATUR PRODUCT)7%

VIFERON(FERON)

6%

COLDREX(GSK)

4%

AMIXIN(PHARMSTANDARD)

4%

FERVEX(BMS)

3%

OTHER 26%

Arbidol® – category leader (by sales value in IH’2012)Anti-cold & flu products


Arbidol® – category leader (anti-cold & flu products)Pharmstandard MS 20% (season 2011-2012*)

TERAFLU 10.8% OSCILLOCOCCINUM 8.5% ARBIDOL (PHST) 16.4%COLDREX 4.5% ANAFERON 8.3% KAGOCEL 6.3%ANTIGRIPPIN 4.1% VIFERON 6.0% INGAVIRIN 2.6%FERVEX 3.7% AMIXIN (PHST) 3.5% TAMIFLU 1.0%ANTIGRIPPIN MAX 3.7% GRIPPFERON 3.4% REMANTADIN 0.6%

TOP-5SYMPTOMATIC

TOP-5IMMUNOMODULATING

TOP-5ANTIVIRALS

OTHER (55 TM) 16.5%


*season 2011-2012 = sep 2011 – apr 2012


0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

1.Autu

mn-W

inter

2.Wint

er-S

pring

1.Autu

mn-W

inter

2.Wint

er-S

pring

1.Autu

mn-W

inter

2.Wint

er-S

pring

1.Autu

mn-W

inter

2.Wint

er-S

pring

1.Autu

mn-W

inter

2.Wint

er-S

pring

season 07-08 season 08-09 season 09-10 season 10-11 season 11-12

Symptomatic Immunomodulating Antivirals

12.2Rur bln

Sales dynamic of anti- cold & flu products by seasons


• Peak sales growth occurs during a pandemic of A-H1N1 in 2009-2010

• Antivirals shows the maximum increase in sales among other


19.918.5

36.735.5

22.8

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

season 07-08 season 08-09 season 09-10 season 10-11 season 11-12

ARBIDOLTERAFLUANAFERONANTIGRIPPINCOLDREXKAGOCELRINZAOSCILOCOCCINUMVIFERONFERVEXCOLDACTANTIGRIPPIN MAXGRIPPFERONRINICOLDCYCLOFERONRINZASIPREMANTADINIMMUNALDIBAZOLECHINACEAOTHER (60 TM)

Packs mln

Arbidol sales is converted into the packs №10(in 3Q'10 Arbidol №40 was launched)

Arbidol® showed the maximum increase in sales among other (season of 2009-2010)


69% 69%75%

62%

70%67% 66% 67% 67% 69%

42%45%

49%

40% 40%45%

40% 39% 37% 38%

19%23% 23% 21% 21%

26%

18% 19%15%

18%

1Q'10 2Q'10 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 4Q'11 1Q'11 2Q'12

Awereness Usage Loyalty

Arbidol® retains level of marketing consumer indicators

Source: TNS Gallup. All 25-45


Arbidol® strong benefits

In spite to the fact, that competitors brands are using “market, created and developed by Arbidol” as a source of business –

Arbidol is still gaining the leading positions in terms of:

- unique clinical profile (wide antiviral activity and indications)- safety profile - evidence-based clinical data (number of patients in clinical trials > 14 000)


• 5-6 July 2012 in Annesi (France) WHO experts held a conference on effective therapy of flu and other acute respiratory infections

• Arbidol® report was presented by expert from Russia in the section “Expansion of possibilities to treat virus respiratory infections”

• The report covered data from research results on pre-clinical and clinical studies of Arbidol, its action method and safety

• Discussion of the report stressed the importance and quality of existing data from experimental studies on Arbidol, its action method and therapeutic spectrum, resistance potential and significant amount of acquired clinical data on therapeutic and preventive efficiency of the drug

• Attention of WHO experts was drawn to the beginning of multicentral postmarketing clinical study ARBITR, which is performed in accordance with the Russian regulatory requirements

• Postmarketing clinical study ARBITR on Arbidol becames the first Russian clinical study added to the international database ClinicalTrials.gov

Arbidol® data was presented to WHO experts


Key Strategic Points for Arbidol®– is to maintain leadership on the anti-cold & flu market

New communication and media-mix 2012

•The unique antiviral medicine combining 3 advantages

- Wide spectrum of antiviral activity (flu and other viral respiratory diseases)- Strengthens the immune system - Effective treatment and prophylaxis

•Enhanced media mix IIH’2012:

- National TV campaign – started in mid August- Radio campaign- Print campaign- Digital campaign- In-door (Moscow Underground)


Key Strategic Points 2012: retail activity & medical detailing

• Increased promotional activities in retail segment

• Increasing of coverage and frequency for medical audiences dedicated to Arbidol:

5 additional Field Force units were involved in Arbidol promotion since 1 August 2012


Pentalgin® – category leaderNon-narcotic analgesics and antipyretics

5 3956 455

8 86810 536 11 204

5 542 5 132

1 913

2 567

3 366

3 6343 970

1 885 2 320

+23% +36% +16% +7% +0%2007 2008 2009 2010 2011 I'11 I'12

OTHER PHARMSTANDARD


Rur mlnRur mlnPENTALGIN

(PHARMSTANDARD)25%

NUROFEN(RECKITT

BENCKISER)8%

NUROFEN FOR CHILD.(RECKITT

BENCKISER)8%

TEMPALGIN(SOPHARMA)

6%SEDAL-M

(SOPHARMA)4%

BARALGIN(SOTEX)

4%

SOLPADEINE(GSK)

4%

KATADOLON(TEVA PHARM.

IND. LTD.)3%

SEDALGIN(ACTAVIS)

3%

ALKA-SELTZER(BAYER

HEALTHCARE)2%

OTHER33%



Non-narcotic analgesics and antipyretics segment Growth drivers of the segment are codein-free products


0

200

400

600

800

1 000

1 200

1 400

1 600

jan 11 feb 11 mar 11 apr 11 may 11 jun 11 jul 11 aug 11 sep 11 oct 11 nov 11 dec 11 jan 12 feb 12 mar 12 apr 12 may 12 jun 12

Without codeine With codeine Total

Rur mln


Pentalgin® codeine-free form demonstrates high level of conversion, up to 77% from total brand sales


0

50

100

150

200

250

300

350

400

jan 11 feb 11 mar 11 apr 11 may 11 jun 11 jul 11 aug 11 sep 11 oct 11 nov 11 dec 11 jan 12 feb 12 mar 12 apr 12 may 12 jun 12

Pentalgin without codeine Pentalgin with codeine Pentalgin total

Rur mln

77%

23%


NUROFEN (RECKITT BENCK.) - 57%

MIG (BERLIN-CH/MENARINI) - 24%

NOVIGAN (DR.REDDY`S) - 07%IBUCLIN (DR.REDDY S) - 05%

NEXT (PHARMSTANDARD) - 03%

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

jan 12 feb 12 mar 12 apr 12 may 12 jun 12 jul 12

Rur mln

New product NEXT® has launched in 2012 in line with the company growth strategy in analgesics (INN - ibuprofen)

Total category sales (IH’12) = 1.4 Rur blnNEXT has already achived 3% MS



Codelac®Expectorants & Antitussives

6 3148 158

10 85212 245

14 659

7 591 8 109

1 644

2 508

2 026

2 087

2 431

1 256 928

+34% +21% +11% +19% +2%2007 2008 2009 2010 2011 I'11 I'12

OTHER PHARMSTANDARD


Rur mlnRur mln LASOLVAN(BOEHRINGER

ING.)13%

ACC(NOVARTIS)

12%

PULMOZYME(ROCHE)

10%

ASCORIL(GLENMARKPHARM. LTD.)

6%

AMBROBENE(TEVA PHARM.

IND. LTD.)6%

SINECOD(NOVARTIS)

5%CODELAC(PHARMSTANDARD)

5%

TERPINCOD(PHARMSTANDARD)

4%

DOKTOR MOM(UNIQUE

PHARM. LAB.)4%

BROMHEXINE(BERLIN-CH/MENARINI)

3%

OTHER32%

Codelac Broncho (3 form.)

(codein free)41%

Codelac Phyto4%

Codelac55%



Complivit®(exl. Complivit Calcium D3, SUPL)Multivitamins with minerals

3 7924 650

5 495 5 730 6 249

3 1863 775

1 037

1 127

1 455 1 4391 534

805

952

+20% +20% +3% +9% +18%2007 2008 2009 2010 2011 I'11 I'12

OTHER PHARMSTANDARD


Rur mlnRur mln

VITRUM(UNIPHARM INC.)

27%

COMPLIVIT CA D3(PHARMSTANDARD)

18%

SUPRADYN(BAYER

HEALTHCARE)12%

MULTI-TABS(FERROSAN)

12%

ELEVIT(BAYER

HEALTHCARE)9%

PANTOVIGAR(MERZ GMBH)

5%

MERZ SPEZIALDRAGEES

(MERZ GMBH)3%

SELMEVIT(PHARMSTANDARD)

2%

BIO-MAX(VALENTA)

2%

PERFECTIL(VITABIOTICS)

2%

OTHER8%



Complivit®Brand development by new sub-brands


Complivit sales structureBrand development by new sub-brands – now 60%

73% 73%68%

54%48%

42%

27%22%

20%

24%

20%

19%

4%

7%

9%

8%

8%

5%

11%

11%

13%

3%

10%14%

3% 3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 2008 2009 2010 2011 2012

Complivit base(3 form.)

Complivit line ext.(4 form.)

Complivit line ext.2008 (4 form.)






Complivit ® Calcium D3Calcium products

4 years

10+ years

10+ years

1 2081 424

1 6692 015

2 193

1 126 1 211

28

95

153

220

299

150243

+23% +20% +23% +12% +14%2007 2008 2009 2010 2011 I'11 I'12

OTHER PHARMSTANDARD


Rur mlnRur mln

CALCIUM D3(NYCOMED)

44%

CALCEMIN(BAYER

HEALTHCARE)24%

COMPLIVIT CA D3(PHARMSTANDARD)

17%

CALCIUM GLUCONATE(SISHUI)

4%

CALCIUM GLUCONATE(MOSHIMPHARM)

2%

CALCIUM GLUCONATE(PHARMAK)

2% OTHER3%

10+ years

10+ years

5 years



Complivit ® Calcium D3 (5 years, 3rd position, 16% market share)Calcium products

4 years

10+ years

10+ years

10+ years

10+ years

4 years

18.5

85.5

127.7

202.2

280.6

140.8

222.21.6%

6.0%7.4%

10.1%12.3% 12.4%

16.1%

2007 2008 2009 2010 2011 I H'2011 I H'2012

Rurmln

Marketshare

+362%

+49%

+58%

+39%

+58%



Flucostat - category leaderSystemic agents for fungal infections

3 0433 538 3 728

4 2694 751

2 330 2 634

744

901926

1 056

1 036

479603

+17% +5% +14% +9% +15%2007 2008 2009 2010 2011 I'11 I'12

OTHER PHARMSTANDARD


Rur mlnRur mln FLUKOSTAT(PHARMSTANDARD)

21%

DIFLUCAN(PFIZER)

19%

IRUNINE(VEROPHARM ZAO)

8%MYCOSYST(GEDEONRICHTER)

6%

LAMISIL(NOVARTIS)

4%

ORUNGAL(JANSSEN-

CILAG)4%

RUMICOZ(VALENTA)

4%

PIMAFUCIN(ASTELLAS

PHARMA INC)3%

SAPHOCID(STADAARZ. AG)

3%

MYCOMAX(SANOFI-AVENTIS)

3%

OTHER25%

MS in retail segment



Afobazol® – category leaderTranquillizers, hypnotic/sedatives

5 years

10+ years

4 7435 758

7 0987 870 8 519

4 160 4 746

517

839

1 088

1 2751 472

692900

+25% +24% +12% +9% +16%2007 2008 2009 2010 2011 I'11 I'12

OTHER PHARMSTANDARD


Rur mlnRur mln APHOBAZOLUM(PHARMSTANDARD)

10%

NOVO-PASSIT(TEVA

PHARM. IND. LTD.)8%

VALOCORDIN(KREWEL

MEUSELBACH)8%

PERSEN(NOVARTIS)

7%

DONORMIL(BMS)

7%

PHENAZEPAM(VALENTA)

6%CORVALOL(PHARMASTART)

6%

CORVALOL(PHARMSTANDARD)

4%

VALOSERDIN(MOSCOW

PHARM.FACTORY)

4%

GRANDAXIN(EGIS)

4%

OTHER36%

10+ years

6 years

Afobazol® growth rate is two times higher segment growth (+30% vs. +16%)



Acipol®Antidiarrhoeal micro-organisms

10+ years10+

years3 637

4 6225 234

6 2067 029

3 3094 296

67

150

288

350

422

202

279

+29% +16% +19% +14% +30%2007 2008 2009 2010 2011 I'11 I'12

OTHER PHARMSTANDARD


Rur mlnRur mln

LINEX(NOVARTIS)

46%

BIFIFORM(FERROSAN)

15%

HYLAK FORTE(TEVA PHARM.

IND. LTD.)13%

ACIPOL(PHARMSTANDARD)

6%

BACTISUBTIL(SOTEX)

6%

BIFIDUMBACTERIN(PARTNER

AO)5%

ENTEROL(BIOCODEX)

2%

OTHER3%

Acipol® has changed position from 5 to 4 (+1)

Acipol® growth rate +38% vs. segment growth +30%

10+ years10+

years



Phosphogliv (2nd position among Rx products)Hepatic protectors, lipotropics

10+ years

10+ years6 years

OTC

OTC

OTC

Rx

Rx4 876

6 2138 029

10 46611 717

5 7047 057

232

494

599

906

1 004

527

581

+31% +29% +32% +12% +23%2007 2008 2009 2010 2011 I'11 I'12

OTHER PHARMSTANDARD


Rur mlnRur mln

ESSENTIALE(SANOFI-AVENTIS)

39%

HEPTRAL(ABBOTT

PRODUCTS)24%

ESSLIVER(STADAARZ. AG)

8%

PHOSPHOGLIV(PHARMSTANDARD)

8%

CARSIL(SOPHARMA)

7%

REZALUT PRO(BERLIN-CH/MENARINI)

4%

HEPA-MERZ(MERZGMBH)

3%

OTHER2%

Phosphogliv® has changed position from 5 to 4 (+1)

10+ years

10+ years

7 yearsRx

Rx

OTC

OTC



Magnelis® B6 (3 years, 3rd position, 9% market share) Magnesium products

10+ years

10+ years

2 years

684997

1 4511 738

2 009

9641 163

0

0

19

108

182

85

121

+46% +47% +26% +19% +22%2007 2008 2009 2010 2011 I'11 I'12

OTHER PHARMSTANDARD


Rur mlnRur mln

MAGNE B6(SANOFI-AVENTIS)

76%

MAGNEROT(WORWAG

PHARMA GMBH)12%

MAGNELIS B6(PHARMSTANDARD)

9%

Magnelis B6 growth rate is two times higher segment growth (+42% vs. +22%)

10+ years

10+ years

3 years



Combilipen® (5 years, 2nd position, 19% market share) Vitamin B1 and combinations

4 years

10+ years10+

years1 221

1 760 1 8482 051

2 254

1 118 1 296

20

68226

425

490

236

317

+47% +13% +19% +11% +19%2007 2008 2009 2010 2011 I'11 I'12

OTHER PHARMSTANDARD


Rur mlnRur mln

MILGAMMA(WORWAG

PHARMA GMBH)56%

COMBILIPEN(PHARMSTANDARD)

19%

NEUROMULTIVIT(LANNACHER

HEIMITTEL GMBH)16%

COCARBOXYLASE(MICROGEN NPO)

2%

COMPLIGAMV(SOTEX)

2%

PENTOVIT(ALTAIVITAMINY)

1%OTHER

2%

Combilipen® growth rate is three times higher segment growth (+58% vs.

+19%)

Compilipen has changed position from 3 to 2 (+1)

10+ years5

years



INN TERBINAFINE

Termicon®(7 years, 2nd position, 20% market share) Antifungals, Dermatological, Systemic agents for fungal infections

6 years

10+ years

10+ years

422461 447 447 470

223263

18

27 35 6285

38

66

+11% -1% +6% +9% +26%2007 2008 2009 2010 2011 I'11 I'12

OTHER PHARMSTANDARD


Rur mlnRur mln

LAMISIL(NOVARTIS)

33%

TERMIKON(PHARMSTANDARD)

20%

EXIFINE(DR.REDDY`S)

20%

TERBINAFINE(BIOCOM ZAO)

6%

TERBIZIL(GEDEONRICHTER)

5%

TERBINAFINE(KANONPHARMA)

4%

OTHER2%

10+ years

7 years

Termicon®growth rate is about three times higher

segment growth (+73% vs. +26%)

Termicon® has changed position from 3 to 2 (+1)



INN AZITHROMYCIN

Azitrox®Macrolides and similar types

10+ years

1 5621 997

2 6852 989

3 403

1 6772 015

55

84

124

155

220

110

130

+29% +35% +12% +15% +20%2007 2008 2009 2010 2011 I'11 I'12

OTHER PHARMSTANDARD


Rur mlnRur mln

SUMAMED(TEVA

PHARM.IND. LTD.)

65%

AZITROX(PHARMSTANDARD)

6%

HEMOMYCIN(STADA

ARZ. AG)6%

AZITHROMYCIN(VERTEX)

5%

ZITROLID(VALENTA)

4%

ZI-FACTOR(VEROPHARM

ZAO)3%

OTHER3%

10+ years

Azitrox®has changed position from 4

to 2 (+2)



Dmitry KudlayBiotechnology marketing & sales directorPharmstandard OJSC


Biotechnology

Definition

(In Greek “bios” means life, “techne” is art, skills and “logos” is word, learning)discipline which search of possibility of living organisms usage, its systems or itslife activity products for technology aims solution, as well as geneticallyengineered living organisms creation with needed properties

Biotechnology is one of the fasten developing fields in world economy

Biotechnology development connect with global human problems solution such aslack of food, energy and mineral raw materials resources, healthcare improvementand environmental quality.


• «Red»- human health provision, gene state correction, drugs manufactory (proteins, enzymes, antibodies)

• «Green»- creation and development of gene modified plants (modern methods of agriculture)

• «White»- manufactory of biofuel, food, chemical, oil processing industry.

• «Gray»- environmental-oriented activity

• «Blue»- see organisms and resource potential usage

«Color» classification of core biotechnology directions ((Electron.J. Biotechnol.v.7.n.3.Valpara.so.dic., 2004).


• Market value is 65-85 billions rubles per year, import drugs is close out

• Significant industry sector lag from leading countries (USA, Europe, China, India)

• Intensive growth need in genetically engineered drugs field

• High investment expenditure in original molecules development, that’s why Biosimilar direction is growth fast

• Attractive segment for API producers (growth in two times till 11% from total volume)

«Red» biotechnology in Russia


Government Programs in Biotechnology Field

Pharmaceutical business development strategy “Pharma 2020”Federal program “Investigation and development in priority directions of Russian scientifictechnology complex in 2007-2012 years”

Federal program “Scientific and educational resources of Russian innovations 2007-2012years”

Fund commitment programs for small enterprises development in scientific sphereRegional programs (Tatarstan and Chuvashia)Bio 2020 project during 2011-2020

According Government resolution generate technology platforms list such as “Medicine of future”, “Bio industry and bio resources”, “Bio energetics”.


Genetically engineered products in the world

Products Sales volume (Mio $) Start of sales, year

Genetically engineered human insulin 5340 1982 (USA)

Somatotropic human enzyme 1760 1985 (USA)

Interferon α 2700 1986 (USA)

Erythropoietin 8800 1989 (USA)

GCSF 2520 1991 (USA+ЕС)

Blood clotting factor VIII 670 1992 (USA)

Interferon β 2200 1993 (USA)

Glucocerebrosidase 740 1994 (USA)

Follicular stimulating enzyme 1000 1995 (ЕС)

Blood clotting factor VIIα 630 1996 (ЕС)

Recombinant therapeutic proteins with sales volume more then 500 Mio $ per year(Rader R.A. // 5-th ed. 2005, Rockwill, MD: BioPlan Associates, Inc.)



OJSC Pharmstandard biotechnology products portfolio

Genetically engineered insulin

Biosulin -2006 Diabetes mellitus

Recombinant tuberculin Diaskintest -2009 Tuberculosis detection

Growth hormone Rastan - 2007 Growth hormone deficiency

Filgrastim Neupomax - 2008 Neutropenia

Blood clotting factor VII Koagil-VII-2010 Hemophilia

Interferon β1β Infibeta- 2011 Multiple sclerosis

Promising Directions. Clinical Trials.

R-84 ( 2015) Targeting therapy in oncology diseases

Blood clotting factor VIII (Octofactor -2012) Hemophilia

Blood clotting factor IX(Innonafactor - 2013)

Hemophilia

PEG filgrastim -2014 Neutropenia

Alteplasa (tissue plasminogen activator) (2014)

Acute ischemic stroke/ myocardial infarction


Biotechnological business results, RUR mln

68

* Products Altevir, Diaskintest, Infibeta and partly Coagil are distributed under consignment agreements with third parties*Pharmstandard dataAnalyst & Investor Day September 13, 2012

Business forecast of Biotech products up to 2015 (Rub bln)

0.5 0.6 0.7 0.91.1 1.31.0 1.2 0.9 0.9

1.2 1.82.6

0.1 0.20.3

0.5

0.8

0.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

RastanBiosulinInnonafaktorDiaskintestOktofaktorKoagilInfibeta

Rur bln

*Pharmstandard dataAnalyst & Investor Day September 13, 2012 69

Pharmstandard endocrine portfolio*

*Pharmstandard dataAnalyst & Investor Day September 13, 2012 70

The Russian market of human insulin*, IU

* Pharmexpert data

Novo Nordisk

Eli Lilly

Pharmstandard

Sanofi-Aventis Medsintez

0

500

1 000

1 500

2 000

2 500

3 000

2007 2008 2009 2010 2011

mln.

IU


Insulin Biosulin, Pharmstandard* (mln. RUR, sales and forecast)

*Pharmstandard data

120.5

165.5

222.2

401.4

478.8502.8

527.9554.3

582.0

2007 2008 2009 2010 2011 2012 2013 2014 2015

Biosulin total sales, Rur mln


BiomatikPen – multidose reusable pen

• Reusable pen BiomatikPen

• Pen developed by cooperation of JSC "Pharmstandard" Russia and "Ipsomed AG», Switzerland

• Compliance with ISO 11608 -1:2000


The Russian market of somatropin. Sales and forecast.

120

846

623

412

223 216 222178 183 170

42%

3%

15%

100% 100% 100% 100% 100% 100% 100%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Somatropin total sales, Rur mln PHST market share

Source:* www.zakupki.gov.ru


Marketing clinical trials

Program of scientific cooperation with FBGU "Endocrinology Research Center" (2011-2015)

1)Clinical and metabolic effects of substitution therapy with Rastan ® adult patients with congenital somatotropic deficiency, reaching a socially acceptable growth.

2)Clinical, growth and metabolic effects of the drug Rastan ® in complex hormonal therapy in patients with Turner's syndrome


Inhibitor Hemophilia Market, sales and forecast, rubles (without VAT)

1.5

0.5

1.1

1.31.0 1.2

0.9 1.0

0.4 0.440 465

28 90317 741 13 569 13 153 12 647 12 452

2009 2010 2011 2012 2013 2014 2015

Inhibitor Hemophilia Market, Rur bln (without VAT)

NovoSeven(Novo-Nordisk)

Koagil-VII(Pharmstandard)

Feiba(Baxter)

Price, Rur/1mg

* www.zakupki.gov.ruAnalyst & Investor Day September 13, 2012 76

77

DIASKINTEST®

• Fusion protein ESAT6-CFP10 was produced by Escherichia coli DLT 1270 (substrain DH10B, with lacI gen in chromosome);

• Fusion protein construction are covered by patent;

• 06.02.2012 group of scientists has been awarded the Russian Government for the introduction into clinical practice DIASKINTEST®


78

DIASKINTEST®, sales and forecast, RUR, million.*

63.3133.7 155.6 172.5 197.7 204.2

299.1

598.2

2009 2010 2011 2012 2013 2014

Federal Central Program, Rur mln Mass screening (children 8-18 years), Rur mln

* www.zakupki.gov.ru


2 4111 941

1 297

451 445 391 350

516 561 699 854

53% 56%

64%

71%

2009 2010 2011 2012 2013 2014 2015

OTHER IFNβ-1b, Rur mln INFIBETA, Rur mln INFIBETA, MS

Interferon Beta-1b Market (Multiple Sclerosis), sales and forecast, RUR, million.

* www.zakupki.gov.ru


• Wide portfolio

• Well established evidence clinical base

• Strong manufactory capacity exist (inside and outside of Russia)

• Strong Federal reimbursement programs

• Well developed marketing programs for screening and disease detection improvement

• Professional marketing team

Biotechnology Dept. Key Success Factors


Ivanov VassilyBusiness Development DirectorOncology Business Unit Pharmstandard OJSC


Cancer Statistics*

*- WHO Global Stat. Report

Category Russia Finland USA Japan

Men 60,3 76,2 76,3 79Women 73,1 83 81,4 86,2Cardio 797 216,3 205,4 124,3Cancer 285 134,8 157,3 133,3Traffic accidents

21 7,5 14,4 2,1

Murder 14 2,1 6,2 0,4Suicide 27 18,8 11 24,4

Ave. life Expectancy

Number of Deaths by Causes (per 100,000 ppl)


Cancer Statistics* II

RUSSIAN FEDERATION Male Female Both sexesPopulation (+000) 65 382 76 011 141 394 Number of new cancer cases (+000) 206,40 226,80 433,20 Age-standardised rate (W) 247,10 178,90 200,50 Risk of getting cancer before age 75 (%) 26,10 18,30 21,10

Number of cancer deaths (+000) 152,90 132,10 285,00 Age-standardised rate (W) 180,70 91,80 124,40 Risk of dying from cancer before age 75 (%) 19,90 10,00 13,90

5-year prevalent cases, adult population (thousands) 401,10 607,30 1 008,50 Proportion (per 100,000) 733,00 922,10 836,30

Lung Breast Lung Colorectum Colorectum Colorectum

Stomach Corpus uteri Breast Prostate Stomach Stomach Bladder Cervix uteri Prostate

5 most frequent cancers

*- International Agency for Research on Cancer, WHO


Estimated incidence, mortality and 5-year prevalence: both sexes

Number (%) ASR (W) Number (%) ASR (W) Number (%) Prop. Lip, oral cavity 10 480 2,4 4,8 5 170 1,8 2,4 21 756 2,2 18 Nasopharynx 587 0,1 0,3 374 0,1 0,2 1 382 0,1 1,1 Other pharynx 3 710 0,9 1,8 3 192 1,1 1,5 7 205 0,7 6 Oesophagus 7 158 1,7 3,2 6 397 2,2 2,8 5 188 0,5 4,3 Stomach 40 615 9,4 17,5 36 045 12,6 15,2 49 671 4,9 41,2 Colorectum 55 719 12,9 23,8 37 911 13,3 15,2 132 048 13,1 109,5 Liver 6 476 1,5 2,8 8 319 2,9 3,6 5 429 0,5 4,5 Gallbladder 3 274 0,8 1,3 3 197 1,1 1,3 2 453 0,2 2 Pancreas 14 092 3,3 6,1 14 808 5,2 6,3 7 208 0,7 6 Larynx 6 723 1,6 3,2 4 556 1,6 2,1 19 211 1,9 15,9 Lung 56 767 13,1 25,5 51 364 18 22,7 58 398 5,8 48,4 Melanoma of skin 7 744 1,8 3,7 3 159 1,1 1,5 27 352 2,7 22,7 Breast 52 469 12,1 43,2 22 946 8,1 17,1 197 345 19,6 299,6 Cervix uteri 13 807 3,2 13,3 7 161 2,5 5,9 46 588 4,6 70,7 Corpus uteri 18 789 4,3 15,1 5 250 1,8 3,6 71 749 7,1 108,9 Ovary 12 761 2,9 11 7 551 2,6 5,8 31 661 3,1 48,1 Prostate 22 129 5,1 26,1 9 452 3,3 10,8 68 144 6,8 124,5 Testis 1 303 0,3 1,7 398 0,1 0,5 5 037 0,5 9,2 Kidney 17 563 4,1 8,4 8 616 3 3,8 49 216 4,9 40,8 Bladder 13 002 3 5,6 6 872 2,4 2,7 38 630 3,8 32 Brain, nervous system 6 578 1,5 3,9 6 277 2,2 3,4 8 795 0,9 7,3 Thyroid 8 984 2,1 4,7 1 952 0,7 0,8 35 183 3,5 29,2 Hodgkin lymphoma 3 118 0,7 2 1 139 0,4 0,6 10 752 1,1 8,9 NHL 7 006 1,6 3,6 3 832 1,3 1,8 17 644 1,7 14,6 Multiple myeloma 2 488 0,6 1,2 1 941 0,7 0,9 5 295 0,5 4,4 Leukaemia 11 028 2,5 5,9 7 274 2,6 3,5 22 063 2,2 18,3 All cancers excl, non-melanoma skin cancer 433 196 100 200,5 284 988 100 124,4 1 008 466 100 836,3

CancerIncidence Mortality 5-year prevalence

Cancer Statistics Russia* III


Cancer Statistics IV (men)

0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000 45 000 50 000

Nasopharynx

Multiple myeloma

Gallbladder

Testis

Thyroid

Hodgkin lymphoma

Melanoma of skin

Other pharynx

Brain, nervous system

NHL

Liver

Leukaemia

Oesophagus

Larynx

Pancreas

Lip, oral cavity

Kidney

Bladder

Prostate

Stomach

Colorectum

Lung

Mortality

Incidence


Cancer Statistics IV (women)

- 10 000 20 000 30 000 40 000 50 000 60 000

Nasopharynx Larynx

Other pharynx Multiple myeloma

Oesophagus Hodgkin lymphoma

Gallbladder Lip, oral cavity

Bladder Liver

Brain, nervous system NHL

Melanoma of skin Leukaemia Pancreas Thyroid Kidney Lung Ovary

Cervix uteri Stomach

Corpus uteri Colorectum

Breast

Mortality

Incidence


Options for Cancer Therapy

RadiotherapySurgeryChemotherapyTargeted therapy (monoclonal antibody)Palliative care


Oncology Market Russia*

Market Size in 2011 – 41,8 bln Rub4 year CAGR – 7%

*- DSM Group statisticsAnalyst & Investor Day September 13, 2012 88

Oncology Market Russia – Top 10 Products*

*- DSM Group statisticsAnalyst & Investor Day September 13, 2012 89

Top Three Brands v. Market


7 Targets in 2013Value of 7 drugs category – 2.1 billion* RUR


Oncology Portfolio Plan 2013-2014

Product Dosage form Source Project stage Year of launchVinorelbine inner Ready for delivery 2012Idarubicin inner Ready for delivery 2012Epirubicin inner In registration process 2013Fluorouracil inner Ready for delivery 2013Mitoxantrone inner In registration process 2013Paclitaxel inner In registration process 2013Doxorubicin inner In registration process 2013Anastrazole outsource In registration process 2014Letrozole outsource In registration process 2014Bicalutamide outsource In registration process 2014Fludarabine outsource In registration process 2014Gosereline caps outsource In registration process 2014

Mabthera solution for infusion Roche In development of

manufacturing transfer 2014

Velcade lyophilizate JC In development of manufacturing transfer 2013

Imatinib tabs Generium In development 2014

R-84solution for infusion Generium Phase I 2015/ 2016

solution for infusion

tabs


Cancer Patients Complaints

78% 77%

51%43% 41% 39%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Weakness Anxiety Sleepdisturbance

Nausea Hair loss Pain

Patie

nts,

%

Ashbury, 1998


Treatment Priority: Pain or Weakness

41%

5%

34%

94%

0% 20% 40% 60% 80% 100%

Patients

Doctors

Pain

Weakness

Vogelzang et al., 1997Analyst & Investor Day September 13, 2012 94

Weakness Therapy Options

70% cancer patients experience weakness often complimented with the feeling of lonelinessSocial activity is reduced for 40% patients

Available therapy options:1. Hemotransfusion2. EPO therapy


EPO Market* – Value in Oncology

789; 68%

82; 7% 245; 21%

46; 4%

EPO Sales – 1.16 bln Rub

EPO-alpha SyringesEPO-alpha vialsEPO-beta SyringesEPO-beta vials

*- Pharmexpert 2012, 10 000 IU/syringes


Pharmexpert 2012 ** - Now in syringes

INN Product name Manufacturer Dosage formMarket share, Rub %

Eprex JC Syringes 50%Eralfon Sotex, Russia Syringes 16%Epocrine NIIChB Vials 7%Aeprine Tutor Syringes 2%Recormone Roche Syringes 21%Epoetine‐Vero Veropharm Vials 1%Epostim Pharmstandard Vials** 3%Eritrostim Microgen Vials 0,1%

Epo‐ alpha

Epo‐beta

EPO Marketed Products – 2011*



EPO Market Dynamics, % (by value)

98

111; 48%

59; 25%

42; 18%

20; 9%

EPO – 231 000 syringes & vials

EPO-alpha SyringesEPO-alpha VialsEPO-beta SyringesEPO-beta Vials

*- Pharmexpert 2012

EPO Market - volume


Critical Success Factors

Growing demandStable and reliable supplyOnco portfolio synergyStable oncology budget: federal and regionalDedicated team of CAMs


0 2 4 6 8 10 12 14 16 18 20

Lip, oral cavityNasopharynx

Other pharynxOesophagus

StomachColorectum

LiverGallbladder

PancreasLarynx

LungMelanoma of skin

BreastCervix uteri

Corpus uteriOvary

ProstateTestis

KidneyBladder

Brain, nervous systemThyroid

Hodgkin lymphomaNon-Hodgkin lymphoma

Multiple myelomaLeukaemia

Russia

Finland

Mortality rate, %

Cancer Mortality – Russia v. Finland


Alexander Obukhov, MD Head of Medical Department Pharmstandard OJSC


Prospective trends of modern medicine

102

• INFECTIOUS DISEASES• DERMATOLOGY• BRONCHIAL ASTHMA• CARDIOVASCULAR DISEASE • PREVENTIVE MEDICINE• NEUROLOGY• ONCOLOGY• TUBERCULOSIS



Analyst&Investor Day Presentation, 13 September 2012

The hepatitis C virus (HCV) is a small, enveloped, single stranded,

positive-sense RNA virus. It is a member of the hepacivirus

in the family flaviviridae

Hepatitis C (HCV) infection causes acutesymptoms in 15% of cases. Symptomsare generally mild and vague, includinga decreased appetite, fatigue, nausea,muscle and/or joint paints. Acute HCVinfection leads to chronic disease in 62-100% cases

105Analyst & Investor Day September 13, 2012

Hepatitis C statistics


170 000 000 people - 3% of the

world’s population has been infected with HCV

4 000 000 people are being

infected with HCV annually

350 000 people die every year due to

HCV related disease ( cirrhosis liver cancer)

WWW.WHO.ORG

106

Hepatitis C global prevalence


Hepatitis C ways of transmission


•The rate increased from 65 to 113 cases per 100000 from 2002 to 2009 among patients aged 15 to 24 years old

Intravenous drug use

Mother to baby

• In the USA- 8-10% in 1970-80, 5% in 1990-1993, <1% after 1993 The modern impact into incidence in the USA reduced almost to zero

Transfusion –associated HCV infection

•Data is controversial. Hetero- or homosexual activity with multiple partners is a mode of transmission

Sexual

108


recipients of previously unscreened blood, blood products and organs (blood transfusion or solid organ transplant before 1992, coagulation factor concentrates before 1987) patients and employees in hemodialysis centers (nosocomial infections) hemophiliacs injecting drug users sharing contaminated needles and/or injection materials people exposed to unsterile medical or dental equipment •occupational exposure to blood people administrating or receiving acupuncture and/or tattooing with unsterile medical devices health care workers •sexual, household and perinatal transmission are possible infants born to infected mothers

Who is susceptible to the HCV infection

109

HCV outcomes



Currently there is no vaccination against hepatitis C. One reason being that the virus comes in many forms and constantly mutates leading to “swarms” of closely related viral genomic sequences (referred to as

quasi-species).

HCV genotype global prevalence

111

HCV treatment goals


What Treatment is Available?

Interferon – Given by shot, usually 3 times a week

Pegylated interferon– Long-acting, taken once a week

Combination therapy– Ribavirin is a pill taken twice daily– Interferon (standard or pegylated) taken with ribavirin



Interferon-based therapy

114

Patients eligible for treatment


Elevated serum alanine aminotransferase (ALT) levels who meet the following criteria

Age greater than 18 yearsPositive HCV antibody and serum HCV RNA test resultsCompensated liver disease (eg, no hepatic encephalopathy or ascites)Acceptable hematologic and biochemical indices (hemoglobin at least 13 g/dL for men and 12 g/dL for women; neutrophil count >1500/mm3, serum creatinine < 1.5 mg/dL) Willingness to be treated and to adhere to treatment requirementsNo contraindications for treatment

115

Mechanism of action


Interferon alfa

HCV

IFN receptors

JAK

STAT

STAT1

IRF9

ISGF3ISRE

ISG mRNA

Viral RNA

PKRADA OAS

HCV replicative complex

Assembly

HCV virions

Adapted from Hoofnagle J. NEJM 2006

116


First national PEG-Interferon alfa-2b

PEGALTEVIR®

• 3 years development• 2 years pre-clinical studies• Start clinical study - August 2012

117

Study design

II PHASE III PHASE

RANDOMIZED OPEN LABEL COMPARATIVE RESEARCH OF

EFFICACY AND SAFETY OF PEGALTEVIR AND PEGINTRON

IN PATIENTS WITH HCV AS PART OF ANTIVIRAL THERAPY.(The stage is corresponded to ii-iii

phases of clinical trials)

RANDOMIZED OPEN LABEL COMPARATIVE RESEARCH OF

EFFICACY AND SAFETY OF PEGALTEVIR AND PEGINTRON

IN PATIENTS WITH HCV AS PART OF ANTIVIRAL THERAPY.(The stage is corresponded to ii-iii

phases of clinical trials)

STUDY WILL BE PERFORMED IN TWO STAGES:

1. 2.


Thank you for your the attention!


JSC PharmstandardLikhachevsky drive, 5 «B» Moscow region,

Dolgoprudny, Russia, 141700.Tel/Fax: (495) 970-0030/32

Ilya Krylov IR manager [email protected]

www.pharmstd.ru

119

Documents

Analyst & Investor Day - Фармстандарт · About Pharmstandard (based on 1H2012 results) • №1 Company among domestic pharmaceutical companies • №3 Company overall