27.03.2008

According to the aggregate results of the STADA Group, overall sales in 2007 reached €1.57 billion, which beats the results in 2006 by 26 percent; €990.7 million out of the figure (63 percent) fell on international sales (sales beyond Germany). The dynamics growth figure for international sales of the STADA Group’s produce rose by 30 percent as compared to 2006.

According to volume of proceeds, the STADA Group rates the Russian pharmaceutical market as the 2nd amongst all those abroad, where the STADA is represented.

David Melik-Gusseynov, Director of the Market Research Centre ‘Pharmexpert’, observes on the results:

Today, the STADA is among the first overseas pharmaceutical companies having their stake on the long-term development of the Russian pharmaceutical market. In this context, the STADA’s dynamics of sales growth for Russia is self-explanatory: the company’s sales volume, which operated in the Russian market independently, reached €0.7 million in 2004; after acquiring the ‘Nizhpharm’ company, the STADA grew to be €56.6 million worth in 2005. The figure of sales volume in the Russian market for 2007 was estimated €133.8 million (as compared to €87.5 million in 2006); the increase by 53 percent was also ensured by finishing the purchase of the Makiz-Pharma company.

In point of fact, the purchase of the ‘Nizhpharm’ company in 2005 introduced a new stage in the Russian market development and its integration into the world pharmaceutical market. Now, the STADA is represented in Russia in both the business sector and that of Additional Pharmacological Support (Note: this is to enlist persons with conditions requiring expensive treatment). The Holding was the 11th in the business segment of the market in 2007.

Besides, the STADA has already managed four production sites: Nizhpharm (Nizhny Novgorod), Makiz-Pharma (Moscow), Skopinpharma (Ryazan oblast), Khemopharm (Obninsk). In 2007, the Holding was the 3rd largest among Russian pharmaceutical producers according to volumes of their output covering an 8.1 percent segment (excluding the products of Khemopharm, which did not take part in the rating), giving way to the Pharmstandart and Otechestvennye (Domestic) Drugs companies.

Meanwhile, other companies may follow the STADA’s example very soon. Thus, for instance, the Gedeon Richter Company currently owns two production sites in Russia; one of these was built independently by the Company and has been in operation since 2001, while the second site was the Akrikhin Venture, which the Company acquired as a result of merging the Polpharma company.

Rapid development of the Russian pharmaceutical market, in particular, of the business sector, makes it very attractive for overseas businesses making opportunities for developing the relatively free operating space.

Market Research Centre ‘Pharmexpert’ Press Service