OTCPharm OJSC reports its Q1 2015 sales results

Moscow, May 19, 2015 – OTCPharm OJSC announces its Q1 2015 sales results.

Company profile

OTCPharm OJSC (since 10 December 2014 – OTCPharm PJSC) was incorporated on 23 December 2013 following Pharmstandard OJSC reorganization by spinning-off the branded OTC business into the Company.

Since 1 April 2014, OTCPharm has started its operations independently of Pharmstandard Group.

Since 30 December 2014, the Company’s shares are traded on the Moscow Exchange.

OTCPharm PJSC is a #3 company in the Russian OTC pharmaceutical market by the market share in value terms, the Company’s product portfolio is represented in most of the largest therapeutic categories.

To date OTCPharm PJSC owns the exclusive rights for 28 brand names. The Company’s product portfolio comprises such well-recognized brands like: Arbidol®, Pentalgin®, Complivit®, Flucostat ®, Aphobazolum®, Codelac®, Amixin®, Acipol®, Maxycold®, Rinostop®, Magnelis® В6, Noopept®, Asvitol®, Askophenum-P®, Next®, Lactazar®, Selmevit ®, Termicon®, Lactonorm®, Ciklovita®, Cinocap®, Univit®, Nitrocor®, Neosmectin®, Klarisens®, Spasmol®, Medira®, Aerovit®.

In addition to the promotion of its own brands, OTCPharm is engaged in marketing and promotion of third party branded pharmaceutical products: Lactofiltrum®, Filtrum-STI®, Mikrazym®, Dinolak® and Taufon®. These products are complementary to the current product portfolio and allow the Company to gain expertise in the relevant therapeutic categories.

Q1 2015 Key Sales Highlights

• OTCPharm demonstrated increase in sales for a major part of its brands. Revenue increased 24% q-o-q and reached RUR3.6 bn;
• A significant q-o-q increase in sales in the 1Q2015 was demonstrated by products of Anti-cold and Flu segment: Amixin® (+52%), Codelac® (+126%), Maxicold® (+48%), Rinostop® (+137%). Arbidol® also demonstrated positive q-o-q dynamics (+11%).

Q1 2015 Market Highlights

• Russian retail OTC market demonstrated a 13% q-o-q growth and reached RUR107.5 bn;
• The average retail pack price increased by 21% in RUR to RUB 134;
• OTCPharm maintained leadership in key segments of Russian pharmaceutical market and is #2 company on a Russian OTC market by revenue with a market share of 5.3%;
• OTCPharm has 2 brands in TOP10 products of the total retail market in Russia – Arbidol® and Pentalgin®, as well as 7 brands in TOP20 local products (Arbidol®, Pentalgin®, Aphobazolum®, Complivit®, Amixin®, Acipol® and Codelac®).

SALES RESULTS

Porfolio Leaders are those products which are actively supported by the marketing team, and which share equals to 50% of total sales in Q1 2015 (54% in Q1 2014). The following brands fall under this category of sales: Arbidol®, Aphobazolum®, Complivit®, Pentalgin®, Flucostat®. These products demonstrated 15% growth in Q1 2015, mostly following growth in sales of: Arbidol® (+11%), Complivit® (+36%) and Aphobazolum® (+29%). Complivit® showed solid growth in sales. According to our estimates, this is a result of increase in demand for Multivitamins segment medicine, which is interfacing to Anti-cold and Flu segment medicine demand during the periods of colds and flu.

The leader in Analgesics segment Pentalgin® showed a slow q-o-q decrease in sales but maintained its leadership as #1 medicine in this segment for adults.

Flucostat®, which is the largest product on a market of fungal infections by revenue, demonstrated a 10% q-o-q increase.

Aphobasolum® – the absolute leader of the tranquilizers/sedatives category, showed 29% growth in revenue in Q1.

High growth brands –actively promoted smaller brands that constitute 20% of the Q1 2015 revenue. These brand include Amixin®, Acipol®, Complivit®Calcium D3, Magnelis® B6 and Next®. This category showed significant q-o-q growth of 53% in Q1 2015 with growth in sales of Amixin® of 52% and Acipol® of 28%. Next® and Magnelis® B6 demonstrated 59% and 133% growth respectively.

Small brands with growth potential constitute 6% of the total Q1 2015 revenue demonstrated outstanding 96% growth q-o-q (+RUR107 mln). These brands include Rinostop® (+137%), Maxycold® (+48%), Cinocap® (+60%), Cyclovita® (+24%), Lactonorm® (+173%) and Lactazar® (+62%). 

Small brands with a stable market share constitute 24% of the total sales in Q1 2015. The largest product in this category by revenue is Codelac®, which demonstrated a significant increase in sales q-o-q of 126%. Codelac® is the 6 largest brand in the total Expectorant category on the market.

Third Party Products showed decrease in sales q-o-q first of all as a result in decrease in sales of Taufon® of 32%.

OTCPharm business sales structure, 1Q2015