OTCPharm PJSC reports its FY/Q4 2014 sales results

Moscow, February 26, 2015 – OTCPharm PJSC announces its FY/Q4 2014 pro forma sales results.

On April 1, 2014 OTCPharm PJSC (further “OTCPharm”), OTC business that was spun-off from Pharmstandard OJSC, started independent operating activities.

As of Q2 2014 OTCPharm sales are recognized in OTCPharm independent statements.

FY2014 results include Q1 2014 revenue that was officially recognized in Pharmstandard OJSC statements.

All data presented below are pro forma statements.

FY/Q4 2014 Key Highlights

• OTCPharm demonstrated strong performance in 2014 driven by double-digit growth in most of the brands with total revenue growing by 12% y-o-y. FY2014 sales reached RUB16.6bn (+RUB1.8bn)
• In 2014 OTCPharm has successfully launched 2 new brands and 6 new sub-brands (16 SKUs in total) that accounted for 2% of company's total sales in FY2014 
• Q4 sales reached RUB4.7bn (+13%/+RUB525m)
• A significant increase in sales y/y was demonstrated by Amixin® (+11%), Pentalgin® (+23%), Rinostop® (+106%) in FY2014 as well as in Q4: +14%, +14%, +151% accordingly.
• One of the main sales drivers in FY2014 were TPP products Taufon® (+260%/RUB679m) and Pentalgin® (+23%/+RUB516m) 
• Listing of ordinary shares on Moscow Exchange. OTCPharm trading commenced on 30 December 2014 with the price of RUB165/share which subsequently increased to RUB230/share as at closing representing 39% growth. OTCPharm current market cap is US$433.2m

Market Highlights - FY 2014

• In 2014, Russian commercial OTC market grew by 9.5% y-o-y reaching RUB366bn (US$5.6bn).
• The average retail pack price in the commercial segment has increased by 11% in RUB terms to RUB112
• OTCPharm preserves leadership position across key segments of Russian pharma market, even though Arbidol® performance in Q1 2014 had been affected by the lack of cold season (as compared to Q1 2013)
• OTCPharm is a #2 company on a Russian OTC market in FY2014 by value with a 4.8% market share after Novartis/Sandoz (7.8%) 
• OTCPharm has 2 brands in TOP10 products of the total retail market in Russia – Arbidol and Pentalgin, 6 brands in TOP20 local products (Arbidol®, Pentalgin®, Aphobazolum®, Complivit®, Amixin®, Flucostat®)

 

SALES RESULTS

Porfolio Leaders are products in active marketing support that took up 57% of total sales in FY2014 (53% in Q4 2014). The following brands fall under this category of sales: Arbidol®, Aphobazolum®, Complivit®, Pentalgin®, Flucostat®. The category demonstrated a 4% decrease (-RUB406m) in sales y-o-y in FY2014 primarily due to Arbidol® revenue drop of RUB933m (-24%). On the contrary, Pentalgin® showed significant growth of +23% (RUB516m) in 2014FY reaching RUB2.8bn in revenue.

Arbidol® FY revenue dropped 24% as a result of an unprecedented absence of pandemia for two seasons in a row mainly driven by first 2 quarters of performance in 2014. In FY2014 Arbidol® held a #3 position in the category by revenue with an 11% market share.

The lack of cold and flu season had an effect on the consumption related category of vitamins. Complivit® lowered its sales in FY2014, following the trend of the category of vitamins and minerals on the market.

The leader of the analgesics category Pentalgin® - a second largest product of our portfolio and one of the main growth drivers – shows very good results in FY2014 climbing 23% (+RUB516m) and +14% (+RUB88m) in Q4. Pentalgin® holds a #1 position in the non-narcotics analgesics and antipyretics category by revenue and has a 27% market share in the category. 

Flucostat® is the largest product on a market of systemic agents and fungal infections by revenue with a 42% market share. Flucostat® revenue in FY2014 reached RUB840m staying flat y-o-y in terms of growth.

Aphobasolum®  – the absolute leader of the tranquilizers/sedatives category on the market with a #1 position and a 19% market share showed strong results growing  +12% (RUB157m) in FY2014.

High growth brands –actively promoted smaller brands that constitute 18% of the FY2014 revenue. These brand include Amixin®, Acipol®, Complivit®Calcium D3, Magnelis® B6 and Next®. This sales category showed very good growth of 12% in FY2014 y/y with Amixin® (+11%/+RUB136m) and Acipol® (+22%/+RUB136m) being main drivers. In Q4 these products demonstrated excellent performance as well: Amixin® grew 14% (+RUB40m) and Acipol® showed a 20% growth (+RUB40m). Next® increased its revenue +RUB45m (+27%).

Small brands with growth potential constitute 2% of the total FY2014 revenue demonstrating outstanding 48% growth y/y (+RUB98m). These brands include Maxycold® (+52%), Cinocap® (+20%), Cyclovita® (+117%), Lactonorm® (+60%) and Lactazar® (+22%).

Small brands with a stable market share constitute 12% of the total sales in FY (15% in Q4) demonstrating 21% growth of revenue y/y in FY2014. The largest product in this category by revenue is Codelac®: RUB679m (+8%) in FY2014 and RUB243m (+23%) in Q4. It has a #6 position on the total expectorant category of the market with a 5% share in FY2014.

The main growth driver is Rinostop® of the topical nasal preparations category which demonstrated significant growth of 106% or RUB204m in FY2014 y/y.

Third Party Products are showing significant growth of +158% (+RUB1.3bn) in FY2014 increasing its share in the products portfolio up to 13%.

New Products. In 2014 OTCPharm successfully launched 2 new brands that include Univit® and Dinolac® and 6 new sub-brands which are Arbidol Maximum®, Rinostop® (spray), Maxycold®Lor, Codelac®Neo, Complivit®Siyanie (former Medira® brand) and Complivit®Ophtalmo. The revenue generated by the launch of new products adds up to RUB328m and accounts for 2% of the Company’s total sales in FY2014 and 5% of Q4 sales.

 

OTCPharm business sales structure, FY2014

BRAND	FY 2013PF (RUBm)	% of total sales	FY 2014 (RUBm)	% of total sales	FY 2014/ FY 2013PF y/y growth (RUBm)	FY 2014/ FY 2013PF y/y growth (%)
ORGANIC
Arbidol®	3 822,4	26%	2 889,8	17%	-932,6	-24%
Pentalgin®	2 242,3	15%	2 758,5	17%	516,3	23%
Complivit®	1 669,4	11%	1 532,3	9%	-137,2	-8%
Aphobasolum®	1 269,1	9%	1 425,8	9%	156,8	12%
Amixin®	1 205,4	8%	1 341,6	8%	136,2	11%
Flukostat®	848,4	6%	839,5	5%	-8,8	-1%
Acipol®	611,9	4%	747,9	4%	136,0	22%
Codelac®	627,2	4%	679,1	4%	51,9	8%
Rinostop®	191,3	1%	395,0	2%	203,7	106%
Magnelis®	318,2	2%	358,7	2%	40,5	13%
Next®	168,5	1%	213,4	1%	44,9	27%
Ascophenum-P®	148,1	1%	191,7	1%	43,6	29%
Selmevit®	150,3	1%	165,6	1%	15,3	10%
Termicon®	182,5	1%	164,8	1%	-17,8	-10%
Maxycold®	105,5	1%	160,0	1%	54,5	52%
Other	470,86	3%	612,45	4%	141,6	30%
Total organic:	14 031,20	94%	14 476,0	87%	444,8	3%
THIRD PARTY PRODUCT
Taufon®	261,4	2%	940,8	6%	679,4	260%
Lactofiltrum®	336,9	2%	720,5	4%	383,6	114%
Mikrazime®	155,7	1%	293,1	2%	137,4	88%
Filtrum-STI®	88,3	1%	211,9	1%	123,6	140%
Dinolac®	-	0%	4,1	0%	4,1	-
Total TPP:	842,3	6%	2 170,5	13%	1 328,2	158%
Total:	14 873,55	100%	16 646,50	100%	1 773,0	12%

 

OTCPharm business sales structure, Q4 2014

BRAND	Q4 2013PF (RUBm)	% of total sales	Q4 2014 (RUBm)	% of total sales	Q4 2014/ Q4 2013PF y/y growth (RUBm)	Q4 2014/ Q4 2013PF y/y growth (%)
ORGANIC
Pentalgin®	624,8	15%	713,1	15%	88,3	14%
Arbidol®	784,9	19%	618,1	13%	-166,8	-21%
Complivit®	581,6	14%	541,0	12%	-40,5	-7%
Aphobasolum®	450,6	11%	432,6	9%	-18,0	-4%
Amixin®	283,4	7%	323,3	7%	39,9	14%
Codelac®	197,2	5%	243,4	5%	46,2	23%
Acipol®	202,3	5%	242,5	5%	40,3	20%
Flukostat®	210,0	5%	184,1	4%	-25,9	-12%
Rinostop®	59,1	1%	148,5	3%	89,4	151%
Magnelis®	108,8	3%	114,2	2%	5,4	5%
Noopept®	48,5	1%	61,2	1%	12,7	26%
Ascophenum-P®	38,3	1%	59,8	1%	21,5	56%
Next®	46,2	1%	54,1	1%	7,9	17%
Asvitol®	34,3	1%	54,0	1%	19,7	57%
Maxycold®	29,4	1%	50,9	1%	21,5	73%
Other	149,2	4%	211,7	5%	62,5	42%
Total organic:	3 848,5	92%	4 052,5	86%	204,0	5%
THIRD PARTY PRODUCTS
Taufon®	100,9	2%	204,2	4%	103,3	102%
Lactofiltrum®	124,8	3%	253,3	5%	128,6	103%
Mikrazime®	62,4	1%	113,7	2%	51,4	82%
Filtrum-STI®	33,8	1%	67,9	1%	34,1	101%
Dinolac®	-	0%	4,1	0%	4,1	-
Total TPP:	321,8	8%	643,3	14%	321,5	100%
Total:	4 170,4	100%	4 695,8	100%	525,4	13%