Moscow, February 15, 2013 – Pharmstandard OJSC (LSE: PHST LI, MICEX-RTS: PHST RU) Board of Directors approved a buyback program in respect of ordinary shares of Pharmstandard OJSC (the "Shares) and/or Global Depositary Receipts representing Shares (each Share representing 4 GRDs) (the “Program”) in the aggregate amount of up to 8 billion roubles. Duration of program: December 31, 2013
The Program has been designed in full compliance with applicable legal requirements following a review of best market practices for similar transactions. All purchases of Shares and/or GDRs will be made for the account of Pharmstandard-Leksredstva OJSC, an indirect wholly owned subsidiary of the Company (the "Purchaser").
Any Shares and GDRs acquired pursuant to the Program may be used for purposes of financing the Company's operations or for M&A transactions.
Acquired Shares and GDRs will retain all rights.
The decision of the Board of Directions to approve the Program is based on the belief that current share price dynamics do not reflect management’s and BoD’s views on the fundamental business value of Pharmstandard OJSC. It is expected that the return of capital to shareholders through this medium-term buyback program will, firstly, increase the liquidity of stock held by other shareholders who have counter views on business value and, secondly, will provide substantial support to the stock price and will send a strong message of confidence in company’s future from management to shareholders.
"Given the leading positions of Pharmstandard on an attractive Russian pharmaceutical market, we can state that the current share price does not reflect the real business value of Pharmstandard. Therefore, we a certain that the buyback program will in best interests of all our shareholders” – said Igor Krylov, the CEO of Pharmstandard.