PHARMSTANDARD – LEADING RUSSIAN PHARMACEUTICAL … · About Pharmstandard (based on 2011 results) • №1 Company among domestic pharmaceutical companies Market Share of 15% ¹

PHARMSTANDARD – LEADING RUSSIAN PHARMACEUTICAL COMPANY

Conference Call 10/02/12:2011 Sales Results Presentation

Conference call: 2011 Sales Results (10.02.12) 1

About Pharmstandard (based on 2011 results)

• №1 Company among domestic pharmaceutical companies Market Share of 15% ¹

• №3 Company among all pharmaceutical companies in retail segment Market Share of 5,1%¹

• №3 Company overall in Russian pharmaceutical market Market Share of 3.7%¹

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

• Capacity – more then 1,3 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

• 672 units in sales force;

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

Arbidol®№1, Pentalgin®№2, Complivit®№8, Terpincod®№14, Codelac®№15, Aphobazol®№17,

Amixin®№19, Flukostat®№20.

• Launched 3 new products: Gluconorm® ;Medira® capsuls;Azitrox® caps 500 mg №2.

• Revenue grew by 43.7% and amounted to RUR 42,655.5 million;

• Organic Revenue² grew by 5.7% and amounted to RUR 20,929.6 million;

¹Source CMR «Pharmexpert» Center of Marketing Researches (measured by sales)

2Conference call: 2011 Sales Results (10.02.12)

²Ecluding TPP

Conference call: 2011 Sales Results (10.02.12)Source: Company data

Achievements 2011

3

• Pharmstandard came 27 in the TOP-100 of the most dynamic consumer goods companies, according to the rating of the Kommersant Secret Firmi Magazine. 178 consumer goods companies participated in the survey; each of them has been in business for at least three years and is one of the five leading companies in its market. Source: Kommersant Secret FirmiMagazine, No. 1-2 (317-318), 01.02.2012.

• In 2011, Swiss company Roche and Pharmstandard group of companies successfully localized production of Mabthera® (rituximab) in the territory of the Russian Federation.

• In 2011 Johnson & Johnson LLC, its pharmaceutical products branch Janssen and OJSC Pharmstandard-UfaVita (the city of Ufa; the plant is a part of Pharmstandard group of companies) signed a Memorandum of Intent outlining the main areas of cooperation in localization of the full cycle of production of Velcade® (bortezomib), a pharmaceutical product included in the list of Vital and Essential Products by a Government Decree in July 2010.

• An offer to purchase 4.9% of OJSC Pharmstandard shares

• Acquisition of 55% of shares of PJSC Biolek

• Increase of the Equity Capital of NauchTechStroy Plus LLC (NTS+)

• Creation of Pharmstandard-Medtechnika LLC

• In March 2011, Pharmstandard came top of the list of the most influential domestic pharmaceuticals producers, according the annual 'Rating of Russian Pharmaceutical Manufacturers'.

• In June 2011, the Vedomosti newspaper published a list of the top 100 biggest companies of Eastern Europe with OJSC Pharmastandard in the 56th position.²

Companies on pharm market in Russian

Conference call: 2011 Sales Results (10.02.12)

Source: DATA Market Research Center PHARMEXPERT 2011

Market Share 2011– Total Market Market share 2011 - Retail Segment

4

№3 among all company in Russia overall№3 in Retail segment

NOVARTIS7.0% (6.6%)

SANOFI-AVENTIS

5.5% (6.3%)PHARMSTANDARD

3.7% (3.7%)

BAYERHEALTHCARE

3.0% (3.0%)

TEVA PHARM.IND. LTD.

3.0% (2.9%)

BERLIN-CH/MENARINI

2.9% (2.9%)

ROCHE2.9% (3.0%)

GSK2.6% (2.4%)

GEDEONRICHTER

2.6% (2.5%)

MERCK SHARP& DOHME

2.4% (2.4%)

OTHER IMPORT(400 COMP)

42.9%

OTHER LOCAL(600 COMP)

21.1%

NOVARTIS7.2% (6.7%) SANOFI-

AVENTIS5.1% (5.2%)

PHARMSTANDARD4.9% (5.2%)

BERLIN-CH/MENARINI

3.6% (3.8%)

BAYERHEALTHCARE

3.6% (3.8%)

GEDEONRICHTER

3.2% (3.1%)

TEVA PHARM.IND. LTD.

2.8% (2.8%)

ABBOTT2.8% (2.9%)

SERVIER2.7% (2.7%)

NYCOMED2.7% (2.6%)

OTHER IMPORT(410 COMP)

39.9%

OTHER LOCAL(567 COMP)

22.0%

A Leader in the Russian Retail Segment


Source: : DATA Market Research Center PHARMEXPERT 2011

Market Share 2011– Total Market

5

№1 domestic company

PHARMSTANDARD15.0% (14.8%)

STADA ARZ. AG6.3% (5.7%)

SOTEX5.1% (5.1%)

VEROPHARM ZAO3.6% (3.6%)

VALENTA3.5% (3.4%)

PHARM-CENTR

2.8% (3.5%)

BIOTEK2.5% (3.8%)

MATERIAMEDIKA

2.3% (2.1%)AKRIKHIN-PHARMA

2.2% (2.8%)

MICROGENNPO

2.2% (3.3%)

OTHER54.5%

Russian Pharmaceutical market structure 2011

Market structure by sales channelsbased on 2011

Market split between domestic and international competitors 2011

Retail

462.369%

FRP

77.912%

Hosp

125.719%

36%

75%

64%

25%

Packs

mln

Rur

bln

International Domestic

(495) (164)

(1 890) (3 296)


• 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. *

• 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.*

*According to independent Market Research Centre 'Pharmexpert'.

7 Years of Substantial Growth


Pharmstandard` s sales in 2011 grew by 43.7% and amounted to RUR 42.656 million

3 9465 685

8 523

11 371

14 565

24 095

29 687

42 656

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

2004 2005 2006 2007 2008 2009 2010 2011

33%

43.7%

50%

28%

65%

23.3%

44%

7

Pharmstandard sales structure (based on 2011 sales results)

Pharmaceutical products

96.9% of sales

OTC

78.6% of organic pharma sales

� Therapeutic focus:

� Analgesics

� Cough & cold

� Vitamins

� Anti-viral

� Anti-fungal

� Product portfolio includes:

� Coronary Therapy

� Acid pump inhibitors

� Nitrites & nitrates

� ACE inhibitors

� Alimentary tract metabolism


� Mabtera®

� Velcade®

� Pulmozyme®

� IRS®-19 & Imudon®

� Coagil VII

� Presista®

� Mildronate®

� Others

43.7% total revenue growth in 20115.7% revenue organic* growth for 2011

-0.9% decline 15.3% growth 119.6% growth

TPP

50.9% of pharma sales

Rx


Medical Equipment

1.8% of sales

Company’s organic sales¹


8

Others

0,9%


Phramstandard-Biolek

1.3% of sales

*Excluding Third Party Products

2011 Trade Update 9

Revenue Analysis 2011

15,581 15,439

542

3,294 3,798630

764287

387

9,894

21,726

,0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2010 2011

OTC Biolek Rx Medical Equipment Others Third parties products

Sales structure, mln RUR

29 686.6

42 655.5

OTC: - 0.9%

- RUR 142.5 mln

Rx: + 15.3%

+ RUR 504.0 mln

ME: + 21.1%

+RUR 133.1 mln

Third parties products: + 119.6%

+ RUR 11 832.1 mln

Source: Company data, IFRS FS

41.9%

• Total sales grew by 43.7%

• Third Parties Products – 50.9% of Total Sales (2010:33.3%)


Best Selling Brands 2011 (organic) *

№ BRANDVolume

(mln packs)Sales (mln

RUR)% of total

salesVolume (mln

packs)Sales (mln

RUR)% of total

sales Change % Change %1 Arbidol 25.839 4011 20.8% 42.640 5589 29.6% -16.802 -39.4% -1 579 -28.2%2 Pentalgin 41.915 2375 12.3% 38.124 1988 10.5% 3.791 9.9% 387 19.4%3 Complivit 16.608 1458 7.6% 14.903 1228 6.5% 1.705 11.4% 230 18.7%4 Therpincod 7.782 1207 6.3% 7.470 1047 5.5% 0.312 4.2% 160 15.3%5 Phosphogliv 2.487 925 4.8% 2.083 699 3.7% 0.404 19.4% 226 32.3%6 Codelac 9.858 872 4.5% 8.317 692 3.7% 1.542 18.5% 181 26.1%7 Afobazol 4.991 772 4.0% 4.093 607 3.2% 0.898 21.9% 165 27.1%8 Flucostat 5.770 717 3.7% 5.609 653 3.5% 0.161 2.9% 64 9.8%9 Amixin 1.289 570 3.0% 1.367 564 3.0% -0.077 -5.7% 6 1.0%

10 Biosulin 0.794 409 2.1% 0.731 361 1.9% 0.064 8.7% 48 13.3%TOP 10 total 117.333 13 316 69.2% 125.336 13 429 71.1% -8.003 -6.4% -113 -0.8%Other brands 548.020 5 920 30.8% 582.266 5 446 28.9% -34.246 -5.9% 474 8.7%TOTAL SALES 665.353 19 237 100.0% 707.602 18 875 100.0% -42.249 -6.0% 362 1.9%

2011 2010 Volume 11/10 Sales 11/10

• 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).

• 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).

*Excluding Third Party Products.


Top 10 OTC Brands 2011(organic)*

№ BRANDVolume


RUR)% of total

salesVolume (mln

packs)Sales (mln

RUR)% of total

sales Change % Change %1 Arbidol 25.839 4011 26.0% 42.640 5589 35.9% -16.802 -39.4% -1 579 -28.2%2 Pentalgin 41.915 2375 15.4% 38.124 1988 12.8% 3.791 9.9% 387 19.4%3 Complivit 16.608 1458 9.4% 14.903 1228 7.9% 1.705 11.4% 230 18.7%4 Therpincod 7.782 1207 7.8% 7.470 1047 6.7% 0.312 4.2% 160 15.3%5 Codelac 9.858 872 5.7% 8.317 692 4.4% 1.542 18.5% 181 26.1%6 Afobazol 4.991 772 5.0% 4.093 607 3.9% 0.898 21.9% 165 27.1%7 Flucostat 5.724 709 4.6% 5.609 653 4.2% 0.116 2.1% 56 8.5%8 Amixin 1.162 528 3.4% 1.208 514 3.3% -0.045 -3.8% 14 2.7%9 Acipol 2.157 283 1.8% 1.164 141 0.9% 0.993 85.3% 143 101.5%

10 Korvalol 42.444 267 1.7% 41.986 230 1.5% 0.458 1.1% 37 16.2%TOP 10 total 158.480 12 483 80.9% 165.514 12 690 81.4% -7.034 -4.2% -207 -1.6%Other brands 453.270 2 956 19.1% 498.566 2 892 18.6% -45.296 -9.1% 65 2.2%TOTAL SALES 611.750 15 439 100.0% 664.080 15 581 100.0% -5 2.330 -7.9% -142 -0.9%

Volume 11/10 Sales 11/102011 2010

• Except this deviation in Arbidol® sales figures, other OTC Pharmstandard products enjoyed steady growth both and volume and in value terms.

• A simulation of OTC portfolio sales excluding Arbidol® shows that the Company's revenue from OTC products in 2011 would have amounted to RUR 11,427.8 million representing an increase of 14.4.% or RUR 1,436.1 million vs. the same period the previous year.



Arbidol® sales structure 2011

Volume packs

101.5%

1.6%

2008:no flu pandemic in Russia.2009:Pandemic in Russia2010:expectation of the second wave of the epidemic in Russia.2011: no flu pandemic in Russia.

Value mln RUR

26,349

45,73642,640

25,839

,0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2008 2009 2010 2011Thsd units

-39.4%73.6%

-6.8%

2,731

5,503 5,589

4,011

,0

1,000

2,000

3,000

4,000

5,000

6,000

2008 2009 2010 2011Mln RUR

-28.2%

12

It is worth mentioning that over the 2005- 2011 period Arbidol® grew by CAGR more than 30%.


Top 10 Rx Brands 2011 (organic)*

№ BRANDVolume


RUR)% of total

salesVolume (mln

packs)Sales (mln

RUR)% of total

sales Change % Change %1 Phosphogliv 2.487 925 24.3% 2.083 699 21.2% 0.404 19.4% 226 32.3%2 Biosulin 0.794 409 10.8% 0.731 361 11.0% 0.064 8.7% 48 13.3%3 Combilipen 4.020 405 10.7% 2.919 279 8.5% 1.101 37.7% 126 45.1%4 Rastan 0.249 356 9.4% 0.336 439 13.3% -0.086 -25.7% -83 -19.0%5 Octolipen 0.920 189 5.0% 0.482 93 2.8% 0.438 90.8% 96 103.2%6 Picamilonum 4.010 169 4.5% 3.959 155 4.7% 0.051 1.3% 14 9.2%7 Azitrox 0.874 149 3.9% 0.631 99 3.0% 0.242 38.4% 50 50.3%8 Cyclodol 2.470 113 3.0% 2.730 120 3.7% -0.260 -9.5% -7 -5.7%9 Cocarboxylase hydrochloride 2.180 98 2.6% 4.402 216 6.5% -2.223 -50.5% -117 -54.4%

10 Sulfocamphocain 2.024 92 2.4% 2.620 103 3.1% -0.596 -22.8% -11 -11.1%TOP 10 total 20.027 2 905 76.5% 20.893 2 565 77.9% -0.866 -4.1% 341 13.3%Other brands 33.576 893 23.5% 22.629 729 22.1% 10.947 48.4% 163 22.4%TOTAL SALES 53.603 3 798 100.0% 43.522 3 294 100.0% 10.081 23.2% 504 15.3%

• In 2011, Pharmstandard enjoyed great sales results in the segment of Rx products which have won trust of the inhabitants of Russia due to their outstanding quality.

• Revenue from sales of Rx products amounted to RUR 3,798.2 million and increased by RUR 504 million or 15.3% vs. RUR 3,294.2 million in 2010.



Sales of Pentalgin® and Codelac® Broncho without codeine

,750.3

1,854.1

1,207.1

122.0

520.9

,0

,500

1,000

1,500

2,000

2,500

Codelac Pentalgin Therpincod

Containing codeine Without codeine

Total sales RUR 872.3 mln

Source: Company data, IFRS FS

Total Sales RUR 2, 374.9 mln

1 207.1

21.9%

14%

• In 2011, revenue from sales of products without codeine amounted to RUR 642.9 million representing an increase of 320% or RUR 489.8 million vs. sales of products without codeine in

2010 (RUR 153 million).

Collaboration projects – TPP (3rd parties products)


Third parties products Description Status for the 2011

RUR mlnStatus for the 2010

RUR mlnGrowth

%

Mabthera® F.Hoffmann-La Roche Manufacturing & Open

auctions8,239.3 0 %

Velcade® Johnson & Johnson Manufacturing 3,596.4 3,838.2 - 6.3%

Pulmozym® Hoffmann-La Roche Open auctions 1,612.1 610.2 164.2%

IRS®-19, Imudon®

Abbott Products Manufacturing & Sales 1,312.6 533.5 146.0%

Coagil VII Generium\Lekko Open auctions & Marketing 1,707.3 1,799.5 - 5.1%

Prezista® Johnson & JohnsonManufacturing & Open

auctions1,243.6 942.5 +31.9%

Midronate® GrindexManufacturing & Distribution

& Sales1,071.8 1,211.7 -11.5%

Others TPP around 15 productsManufacturing & Open

auctions Distribution & Sales1,483.3 467.9 1,015.4%

Total: 21,725.9 9,893.8 120%

• Sales of TPP increased by 119.6% or RUR 11,832.1 million and totalled RUR 21,726 million.

4Q2011 Sales results


Pharmstandard sales structure (based on 4Q2011 sales results)*


Pharmaceutical products

98.4% of sales

OTC


� Therapeutic focus:

� Analgesics

� Cough & cold

� Vitamins

� Anti-viral

� Anti-fungal


� Coronary Therapy

� Acid pump inhibitors

� Nitrites & nitrates

� ACE inhibitors

� Alimentary tract metabolism


� Mabtera®

� Velcade®

� Pulmozyme®

� IRS®-19 & Imudon®

� Coagil VII

� Presista®

� Mildronate®

� Others

43.7% total revenue growth in 20115.7% revenue organic* growth for 2011

-0.9% decline 15.3% growth 119.6% growth

TPP


Rx


Medical Equipment

1.6% of sales

Company’s organic sales¹


Others

0,9%

*Excluding Phramstandard-Biolek


Revenue Analysis 4Q 2011*

4,9104,213

1 057

1 330

241346

152151

3,774

9,987

,0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

4Q 2010 4Q 2011

OTC Rx Medical Equ ipment Others Third parties products

Sales structure, mln RUR

Total sales decreased by 58.2%

Third Parties Products – 62.3% of Total Sales (4Q 20 10: 37.2%)

10 132.9

16 026.5

OTC: - 14.2%

- RUR 697.1 mln

ME: + 44.0%

+RUR 105.8 mlnRx: +25.9%

+RUR 273.4 mln

Third parties products: +164.6%

+RUR 6213.0 mln

58.2%

*Excluding Phramstandard-Biolek

2011 9m Trade Update 19

Best Selling Brands 4Q 2011

№ BRANDVolume


RUR)% of total

salesVolume (mln

packs)Sales (mln

RUR)% of total

sales Change % Change %

1 Arbidol 6.405 969 17.5% 12.322 1739 29.1% -5.917 -48.0% -770 -44.3%

2 Complivit 6.288 559 10.1% 6.100 492 8.2% 0.188 3.1% 67 13.7%

3 Pentalgin 9.093 506 9.1% 11.632 613 10.3% -2.539 -21.8% -106 -17.4%

4 Phosphogliv 0.827 313 5.7% 0.671 229 3.8% 0.157 23.3% 84 36.7%

5 Afobazol 1.920 295 5.3% 1.780 263 4.4% 0.140 7.8% 32 12.0%

6 Therpincod 1.802 275 5.0% 2.191 314 5.3% -0.389 -17.8% -39 -12.3%

7 Codelac 2.491 216 3.9% 2.532 204 3.4% -0.041 -1.6% 12 6.0%

8 Flucostat 1.749 214 3.9% 1.710 202 3.4% 0.039 2.3% 12 5.9%

9 Rastan 0.146 210 3.8% 0.101 124 2.1% 0.045 44.6% 86 69.3%

10 Amixin 0.368 158 2.8% 0.331 138 2.3% 0.037 11.2% 19 13.8%

TOP 10 total 31.089 3 717 67.1% 39.369 4 319 72.4% -8.280 -21.0% -602 -13.9%

Other brands 145.885 1 826 32.9% 166.529 1 647 27.6% -20.644 -12.4% 178 10.8%

TOTAL SALES 176.974 5 543 100.0% 205.899 5 966 100.0% -28.925 -14.0% -424 -7.1%

Volume 11/10 Sales 11/104Q 2011 4Q 2010


Top 10 OTC Brands 4Q 2011

№ BRANDVolume


RUR)% of total

salesVolume (mln

packs)Sales (mln

RUR)% of total

sales Change % Change %1 Arbidol 6.405 969 23.0% 12.322 1739 35.4% -5.917 -48.0% -770 -44.3%2 Complivit 6.288 559 13.3% 6.100 492 10.0% 0.188 3.1% 67 13.7%3 Pentalgin 9.093 506 12.0% 11.632 613 12.5% -2.539 -21.8% -106 -17.4%4 Afobazol 1.920 295 7.0% 1.780 263 5.4% 0.140 7.8% 32 12.0%5 Therpincod 1.802 275 6.5% 2.191 314 6.4% -0.389 -17.8% -39 -12.3%6 Codelac 2.491 216 5.1% 2.532 204 4.2% -0.041 -1.6% 12 6.0%7 Flucostat 1.729 210 5.0% 1.710 202 4.1% 0.018 1.1% 8 4.1%8 Amixin 0.325 143 3.4% 0.308 131 2.7% 0.017 5.5% 12 9.1%9 Korvalol 14.599 90 2.1% 10.411 61 1.2% 4.188 - 29 -

10 Acipol 0.635 83 2.0% 0.605 75 1.5% 0.030 4.9% 8 10.7%TOP 10 total 45.286 3 348 79.5% 49.591 4 094 83.4% -4.305 -8.7% -746 -18.2%Other brands 116.373 864 20.5% 142.357 816 16.6% -25.984 -18.3% 49 6.0%TOTAL SALES 161.658 4 213 100.0% 191.947 4 910 100.0% -30. 289 -15.8% -697 -14.2%

4Q 2011 4Q 2010 Volume 11/10 Sales 11/10


Top 10 Rx Brands 4Q 2011

№ BRANDVolume


RUR)% of total

salesVolume (mln

packs)Sales (mln

RUR)% of total

sales Change % Change %1 Phosphogliv 0.827 313 23.6% 0.671 229 21.7% 0.157 23.3% 84 36.7%2 Rastan 0.146 210 15.8% 0.101 124 11.8% 0.045 44.6% 86 69.3%3 Biosulin 0.340 157 11.8% 0.250 128 12.1% 0.091 36.4% 30 23.1%4 Combilipen 1.367 136 10.2% 1.078 101 9.6% 0.289 26.8% 35 34.4%5 Octolipen 0.354 72 5.4% 0.144 29 2.8% 0.210 145.4% 43 147.2%6 Picamilonum 1.299 54 4.1% 1.432 57 5.4% -0.133 -9.3% -3 -5.3%7 Azitrox 0.193 33 2.4% 0.238 37 3.5% -0.045 -18.8% -4 -11.8%8 Liptonorm 0.127 30 2.2% 0.109 24 2.3% 0.018 16.5% 6 23.7%9 Cyclodol 0.644 29 2.2% 0.778 35 3.3% -0.134 -17.3% -5 -15.6%

10 Artrosan 0.203 29 2.2% 0.101 14 1.3% 0.102 100.7% 15 112.5%TOP 10 total 5.501 1 064 80.0% 4.902 778 73.6% 0.599 12.2% 286 36.7%Other brands 9.815 266 20.0% 9.050 279 26.4% 0.765 8.5% -13 -4.5%TOTAL SALES 15.316 1 330 100.0% 13.952 1 057 100.0% 1.364 9 .8% 273 25.9%

Volume 11/10 Sales 11/104Q 2011 4Q 2010

Collaboration projects – TPP (3rd parties products) 4Q2011


Third parties products Description Status for the 2011

RUR mlnStatus for the 2010

RUR mlnGrowth

%

Mabthera® F.Hoffmann-La Roche Manufacturing & Open

auctions3983.8 0 %

Velcade® Johnson & Johnson Manufacturing 1,945.7 2,188.5 - 11.1%

Pulmozym® Hoffmann-La Roche Open auctions 786.2 0 %

IRS®-19, Imudon®

Abbott Products Manufacturing & Sales 292.8 236.3 23.9%

Coagil VII Generium\Lekko Open auctions & Marketing 1,064.3 687.5 54.8%

Prezista® Johnson & JohnsonManufacturing & Open

auctions0 0 %

Midronate® GrindexManufacturing & Distribution

& Sales394.0 431.6 -8.7%

Reduxin Distribution 793.5 178.3 345.1%

Others TPP around 15 productsManufacturing & Open

auctions Distribution & Sales1,483.3 467.9 1,015.4%

Total: 9,986.5 3,773.5 165%

This increase was due to TPP sales which took place in December 2011 within the framework of the 7 nosologies program following the state auctions in October.


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 aninducement 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 connection with, any contract or commitment or investment decision whatsoever.

This presentation may contain 'forward-looking statements'. These statements may include the words "anticipate", "believe", "intend","estimate", "expect" and words of similar meaning. All statements other than statements of historical facts, possibly contained in this presentation, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations (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 or implied by such forward-looking statements. Risks and uncertainties include, without limitation, general industry conditions and competition; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; andtrends toward health care cost containment. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this presentation.

The Company does not undertake to update any forward-looking statements as a result of new information or future events or developments.

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, unless expressly specified herein, is from Company data.

Contacts


JSC PharmstandardLikhachevsky drive, 5 «B» Moscow region,Dolgoprudny, Russia, 141700.Tel/Fax: (495) 970-0030/32IR ex.2416www.pharmstd.ru

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PHARMSTANDARD – LEADING RUSSIAN PHARMACEUTICAL … · About Pharmstandard (based on 2011 results) • №1 Company among domestic pharmaceutical companies Market Share of 15% ¹