Moscow, May 20, 2014 –Pharmstandard OJSC (LSE: PHST IL, RTS: PHST RU) reports 1Q14 Sales Results.
In 1Q14, Pharmstandard sales reached RUB7,471 million demonstrating RUB1, 673 million or 18%y/y decrease (compared to RUB9,114 million in 1Q13).
Pharmaceutical products and medical equipment accounted for 98.7% and 1.3%. of the Company’s total sales, respectively.
Pharmaceutical products
Pharmaceutical sales reached RUB7,371 (-17%/-RUB1,493m), with organic sales accounting for 61.6% and third party products (“TPP”) for 34.8% in the pharmaceutical sales mix.
Organic pharmaceutical sales amounted to RUB4,603 million (-17%) vs RUB5,539 million in 2013 with 65.8% accounted for by OTC products and 34.2% by RX products.
Organic prescription product (Rx) sales grew 5.8% to reach RUB1,575 million. Key growth drivers were Phosphoglive® (25% of RX revenue in 1Q14; +82%/RUR177m), Octolipen®(+48%) and Formetine®(+42%).
Organic over-the-counter (ÎÒÑ) product sales reached RUB3,027 million showing a decline of 25% (RUB1,022 million). In 1Q14 Arbidol® demonstrated a drop of 58/% vs 1Q13 (RUB597million). The decrease of organic OTC product revenue was mainly driven by the unprecedented absence of pandemia for almost 2 seasons in a row which caused a significant revenue decrease in portfolios of antivirals, immunostimulants and symptomatic products, as well as corresponding therapeutic categories on the market overall. A brief overview of market retail sales will be available further in the text and in the presentation for the conference call which will be uploaded to our website.
TPP sales went down to RUB2,600 million (-15.2%) vs RUB3,067 million in 2013.
Production localization. 7 Nosologies Federal Program.
TPP sales decrease in 1Q14 is directly attributed to production localization segment decline due to lack of government purchases via public auctions under 7 Nosologies Federal Program. This particularly relates to the decrease in sales for Infibeta®(-RUB201m), Coagil®(-RUB279m) and Mabthera®(-RUB147m) that accounted for 76% of the total TPP sales a year before. The rest of the products within this segment demonstrated sales growth totaling 53% segment growth EXCLUDING Infibeta®, Coagil® and Mabthera®. The 2014 demand for these three products as well as Velcade® exceeds the 2013 demand bringing us positive outlook for this segment in 2014 (a close-up slide will be available in the presentation for the conference-call).
|
Brand |
Category |
1Q14 |
1Q13 |
Change |
|
Sales,
RUBm |
% of TPP
sales |
Sales,
RUBm |
% of TPP
sales |
RUBm |
% |
|
Mabthera® |
Rx |
268,6 |
10,3% |
416,1 |
13,6% |
-147,5 |
-35,4% |
|
Coagil® |
Rx |
61,4 |
2,4% |
340,6 |
11,1% |
-279,2 |
-82,0% |
|
Revlimid® |
Rx |
211,5 |
8,1% |
242,3 |
7,9% |
-30,8 |
-12,7% |
|
Infibeta® |
Rx |
0,0 |
- |
201,37 |
6,6% |
-201,4 |
- |
|
Velcade® |
Rx |
0,0 |
- |
0,0 |
0,0% |
- |
- |
|
Other TPPs |
Rx |
262,7 |
10% |
67,4 |
2,2% |
195,3 |
290,7% |
|
Total for the group |
Rx |
804,3 |
30.9% |
1 267,8 |
41,3% |
-463,6 |
36,6% |
|
Total TPPs |
OTC, Rx |
2 600,1 |
100,0% |
3 067,1 |
100,0% |
-466.9 |
-15,2% |
Commercial
Commercial TPP sales remained flat in 1Q14 y/y and reached RUB1,795 million primarily driven by Taufon®, IRS-19® and Imudon®.
|
Brand |
Category |
2014 |
2013 |
Change |
|
Sales,
RUBm |
% of TPP
sales |
Sales,
RUBm |
% of TPP
sales |
RUBm |
% |
|
Reduksin® |
OTC, Rx |
473,2 |
18,2% |
667,7 |
21,8% |
-194,6 |
-29,1% |
|
IRS®19, Imudon® |
OTC |
404,0 |
15,5% |
266,6 |
8,7% |
137,4 |
51,5% |
|
Mildronate® |
RX |
225,5 |
8,7% |
205,7 |
6,7% |
19,8 |
9,6% |
|
Taufon |
OTC |
316,5 |
12,2% |
34.2 |
1,1% |
282,3 |
825,1% |
|
Emoksipine |
Rx |
71,3 |
2,7% |
26,1 |
0,8% |
45,2 |
173,4% |
|
Other TPPs |
OTC, Rx |
305,5 |
11,8% |
599,0 |
19,5% |
-293,5 |
-49% |
|
Total for the group |
OTC, Rx |
1 796,0 |
69,1% |
1 799,3 |
58,7% |
-3 384,7 |
-0.2% |
|
Total TPPs |
OTC, Rx |
2 600,1 |
100,0% |
3 067,1 |
100,0% |
-466.9 |
-15,2% |
Medical equipment sales as of 1Q14 reached RUB100 million (-64%/-RUB180m).
Pharmstandard OJSC sales structure, 1Q 2014
|
1Q14 SALES |
1Q14 (RUBm) |
% of total sales |
1Q13 (RUBm) |
% of total sales |
Change, (RUBm) |
Change (%) |
|
Pharmaceutical products |
7 370,6 |
98,7% |
8 863,4 |
96,93% |
-1 492,8 |
-16,8% |
|
PHS production |
4 603,2 |
61,6% |
5 538,9 |
60,58% |
-935,7 |
-16,9% |
|
OTC |
3 027,6 |
40,5% |
4 049,6 |
44,29% |
-1 021,9 |
-25,2% |
|
Branded |
2 415,4 |
32,3% |
3 305,1 |
36,15% |
-889,7 |
-26,9% |
|
Non-branded |
612,2 |
8,2% |
744,5 |
8,14% |
-132,2 |
-17,8% |
|
Rx |
1 575,5 |
21,1% |
1 489,3 |
16,29% |
86,2 |
5,8% |
|
Branded |
1 389,0 |
18,6% |
1 262,8 |
13,81% |
126,2 |
10,0% |
|
Non-branded |
186,5 |
2,5% |
226,5 |
2,48% |
-40,0 |
-17,7% |
|
TPP |
2 600,1 |
34,8% |
3 067,1 |
33,54% |
-466,9 |
-15,2% |
|
Other sales – substances |
167,2 |
2,2% |
257,4 |
2,81% |
-90,1 |
-35,0% |
|
Medical equipment |
99,9 |
1,3% |
280,4 |
3,07% |
-180,5 |
-64,4% |
|
Pharmstandard Group total sales |
7 470,5 |
100,0% |
9 143,7 |
100,0% |
-1 673,3 |
-18.3% |
Pharmstandard OJSC sales structure (excluding TPP segment), 1Q 2014
|
1Q14 SALES, EXCLUDING TPPs |
1Q14 (RUBm) |
% of total sales |
1Q13 (RUBm) |
% of total sales |
Change, (RUBm) |
Change (%) |
|
Pharmaceutical products |
4 770,4 |
97,9% |
5 796,3 |
95,39% |
-1 025,9 |
-17,7% |
|
PHS production |
4 603,2 |
94,5% |
5 538,9 |
91,15% |
-935,7 |
-16,9% |
|
OTC |
3 027,6 |
62,2% |
4 049,6 |
66,64% |
-1 021,9 |
-25,2% |
|
Branded |
2 415,4 |
49,6% |
3 305,1 |
54,39% |
-889,7 |
-26,9% |
|
Non-branded |
612,2 |
12,6% |
744,5 |
12,25% |
-132,2 |
-17,8% |
|
Rx |
1 575,5 |
32,4% |
1 489,3 |
24,51% |
86,2 |
5,8% |
|
Branded |
1 389,0 |
28,5% |
1 262,8 |
20,78% |
126,2 |
10,0% |
|
Non-branded |
186,5 |
3,8% |
226,5 |
3,73% |
-40,0 |
-17,7% |
|
Other sales – substances |
167,2 |
3,4% |
257,4 |
4,24% |
-90,1 |
-35,0% |
|
Medical equipment |
99,9 |
2,1% |
280,4 |
4,61% |
-180,5 |
-64,4% |
|
Pharmstandard Group total sales |
4 870,3 |
100,0% |
6 076,7 |
100,00% |
-1 206,3 |
-19,9% |
OTCPharm business sales structure, 1Q14
1Q14 OTCPharm portfolio sales reached RUR2 451m comprising approximately 33% of the Group’s consolidated sales.
|
BRAND |
1Q13 (RUBm) |
% of total sales |
1Q14 (RUBm) |
% of total sales |
Change, (RUBm) |
Change (%) |
|
Amixin® |
400,52 |
11,72% |
270,91 |
11,05% |
-129,60 |
-32,36% |
|
Arbidol® |
1 026,50 |
30,04% |
429,38 |
17,52% |
-597,12 |
-58,17% |
|
Asvitol® |
27,49 |
0,80% |
23,61 |
0,96% |
-3,88 |
-14,11% |
|
Ascophenum-P® |
33,59 |
0,98% |
33,31 |
1,36% |
-0,28 |
-0,84% |
|
Aphobazolum® |
194,08 |
5,68% |
185,49 |
7,57% |
-8,58 |
-4,42% |
|
Acipol® |
138,95 |
4,07% |
143,77 |
5,87% |
4,82 |
3,47% |
|
Aerovit® |
0,92 |
0,03% |
0,97 |
0,04% |
0,05 |
5,77% |
|
Klarisens® |
2,32 |
0,07% |
2,91 |
0,12% |
0,59 |
25,38% |
|
Codelac® |
189,96 |
5,56% |
88,12 |
3,59% |
-101,84 |
-53,61% |
|
Complivit® |
426,09 |
12,47% |
335,51 |
13,69% |
-90,59 |
-21,26% |
|
Lactazar® |
5,42 |
0,16% |
5,66 |
0,23% |
0,24 |
4,39% |
|
Lactonorm® |
1,12 |
0,03% |
2,19 |
0,09% |
1,07 |
95,82% |
|
Magnelis B6® |
49,99 |
1,46% |
45,24 |
1,85% |
-4,75 |
-9,49% |
|
Maxycold® |
25,47 |
0,75% |
30,36 |
1,24% |
4,89 |
19,22% |
|
Medira® |
0,42 |
0,01% |
0,00 |
0,00% |
-0,42 |
-99,88% |
|
Next® |
47,46 |
1,39% |
24,05 |
0,98% |
-23,41 |
-49,32% |
|
Neosmectin® |
17,22 |
0,50% |
13,72 |
0,56% |
-3,51 |
-20,36% |
|
Nitrocor® |
8,11 |
0,24% |
8,18 |
0,33% |
0,06 |
0,76% |
|
Noopept® |
25,26 |
0,74% |
22,49 |
0,92% |
-2,77 |
-10,96% |
|
Pentalgin® |
506,57 |
14,82% |
489,86 |
19,99% |
-16,71 |
-3,30% |
|
Rinostop® |
49,16 |
1,44% |
57,24 |
2,34% |
8,08 |
16,43% |
|
Selmevit® |
46,82 |
1,37% |
42,73 |
1,74% |
-4,08 |
-8,72% |
|
Spasmol® |
1,10 |
0,03% |
0,70 |
0,03% |
-0,40 |
-36,40% |
|
Termicon® |
31,50 |
0,92% |
19,36 |
0,79% |
-12,14 |
-38,55% |
|
Flucostat® |
149,77 |
4,38% |
159,47 |
6,51% |
9,70 |
6,48% |
|
Ciklovita® |
2,45 |
0,07% |
6,65 |
0,27% |
4,20 |
171,75% |
|
Cinocap® |
9,20 |
0,27% |
9,25 |
0,38% |
0,05 |
0,51% |
|
Total: |
3 417,44 |
100,00% |
2 451,12 |
100,00% |
-966,32 |
-28,28% |
A significant decrease it 1Q14 total sales for OTCPharm is mainly attributed to the anti-cold & flu portfolio which suffered a significant drop due to unprecedented absence of pandemia for almost 2 seasons in a row. Complementary and related products have also demonstrated a decrease in revenues.
OTCPharm portfolio leaders[1].
OTCPharm portfolio leader brands like Arbidol®, Codelac® and Complivit® demonstrated a decrease in sales in line with their respective therapeutic categories.
Due to the absence of pandemia in Russia since 2H13 anti-cold and flu category dropped 16% in RUB and 20% in packages with all top-10 category leaders dropping along. Kagocel® (Niarmedik-Plus), the leader of the category by revenue and the main competitor of Arbidol®, decreased sales for 16% in RUB and 13% in packages. Arbidol® showed a decline of 35% in RUB according to 1Q14 retail sales IMS Data but kept its #2 market position by revenue in the category. One of the factors that confirms the decline of the total antiviral category in OTC and RX is the significant drop of Tamiflu® (Roche) sales for 45%. OTCPharm remains #1 in the Anti-cold and flu therapeutic category with a 17.5% market share.
OTCPharm growth drivers[2].
OTCPharm growth driving brands like Acipol, Aphobazolum, Magnelis and Next continued to demonstrate growth in retail sales and have keeping thei TOP-5 positions and increased their market shares in respective therapeutic categories.
Acipol® showed +44% growth in RUB and +38% in packages in 1Q14 raising its market share from 8.1% to 10.5% in the category Antidiarrheal microorganisms y/y.
Aphobazolum® has also increased its share in the Sedatives category from 16.5% to 20.8% 1Q14 vs 1Q13 accordingly. Retail sales increased +39% in RUB and +26% in packs.
Magnelis B6 grew +57% in RUB and +42% in packs; share in the category went up to 13.2% in 1Q14 vs 11.4% in 1Q13.
The critical point here is that the consumption of these products has grown despite the decrease in IFRS revenue which its turn is the result of spin-off process which required normalization of stock before the start of the independent operating activities on April 1, 2014.
[1]IMS Health Data. Retail sales in 1Q14.
[2]IMS Health Data. Retail sales in 1Q14.
1Q14 sales results Conference Call
Moscow, May 20, 2014 – OJSC Pharmstandard (LSE: PHST LI, RTS: PHST RU) will be announcing its 1Q14 sales results on Tuesday, May 20, 2014 at 17:00 PM Moscow time.
Pharmstandard takes pleasure to invite you to participate in 1Q14 sales results Conference Call followed by a Q&A session.
Conference Call will take place on
Tuesday, May 20, 2014
09:00 New York
14:00 London
17:00 Moscow
UKCall-in Number: +44(0)20 7138 0813
US Call-in Number: +1212 444 0481
RussiaCall-in Number: +7495 213 0978
Confirmation code: 1761966
Pharmstandard will be represented by:
Igor Krylov, CEO
Irina Bakhturina, Head of IR
Conference call presentation
will be available on Tuesday, May 20, 2014
on our web-site:
https://pharmstd.com/
The conference call replay will be available through May 27th, 2014
International Replay Number: +44 (0)20 3427 0598
US Replay Number: +1 347 366 9565
RussiaReplay Number: +7 (495) 705 9453
Replay Access Code: 1761966
Contacts:
Irina Bakhturina
Head of Investor Relations
OJSC Pharmstandard
Tel: +7 495 970 0030 ext. 2824
E-mail: ir@pharmstd.ru
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