Moscow, 21 July, 2009 – JSC Pharmstandard (LSE: PHST LI, RTS: PHST RU) announces its unaudited 1H2009 sales results. The total revenue of the Company for the first six months of 2009 amounted to RUR10,062, an increase of 62% over 1H2008.

Highlights:

· Pharmstandard won the government tender under 7 nosologies programme (part of FRP) for oncology diseases treatment preparations. Pharmstandard acts as a distributor of Velcade® (bortezomib), original prescription product of Janssen-Cilag, and supplied Velcade® for the total amount of RUR2,505 mln;

· Pharmstandard signs an agreement with Pharmapark on marketing and exclusive sales of Altevir® (gepatology). Starting from April 2009, sales of Altevir® reached RUR14 mln;

· The efficacy of Arbidol® for prevention and treatment of “swine influenza” (À / H1N1/ «California 04/2009» strain) has been proven by major Russian virology scientific centres;

· In June 2009, Pharmstandard-Ufavita receives a visit from Deputy Minister of Industry and Trade Denis Mansurov. Mr.Mansurov examines major production lines for Complivit®, Biosulin® and Rastan® manufacturing;

· Pharmstandard has become a full member of the International Pharmaceutical Excipients Council (IPEC) Europe.

· Pharmstandard and ZAO “Apteki 36.6” signed an agreement on direct collaboration. Pharmstandard delivers its products directly to Pharmacy Chain 36.6.

· For the purpose of concentration of assets and strengthening of manageability, Pharmstandard plans to acquire its subsidiaries OJSC “Pharmstandard-Octybr” and CJSC “Masterlek”. OJSC Pharmstandard-Oktybr and CJSC Masterlek have no operating activity. The EGM dedicated for approval of reorganization scheduled for 2 September 2009.

Sales

Pharmstandard’s sales for the six months of 2009 increased by 62% to RUR10,062 million, which represents the increase of RUR3,863 million in comparison with RUR6,199 million reported in first half of 2008. Pharmaceutical products and medical equipment sales contributed 97% and 3% of total sales respectively.

The Company’s sales of pharmaceutical products achieved RUR9,789 million for the first six months of 2009 and increased by 73% compared to prior-year period.

The sales of OTC products were RUR5,732 million in the first half of 2009 and grew by 33% in comparison with prior-year period. Arbidol®, Pentalgin®, Codelac®, Complivit®, Amixin® and Afobazol® generated key sales growth in OTC segment.  OTC segment organic growth excluding Afobazol®, IRS 19® and Imudon® was 24% in first half of 2009.

The Company’s revenue from prescription (Rx) products amounted to RUR4,015 million and increased by 203% compared with the same period of 2008. The prescription products sales were driven by an increase in leading brands sales, such as Phosphogliv®, Biosulin®, Combilipen® (launched in 2008), Cyclodol®, Pikamilon® and Azitrox®. Rx segment organic growth excluding Velcade® and Mildronate® sales was 52%.

By Company’s view, the consumption of pharmaceutical products in Russia moved to old-fashioned and traditional drugs, because of the changes in the disposable income of population in Russia. Pharmstandard’s sales of pharmaceutical products were driven not only by top-line products but also by non-branded generics (bulk products). OTC non-braned generics sales grew by 51% to RUR896 million, Rx non-braned generics sales grew by 64% to RUR174 million in the first 6 months of 2009.

The Company’s revenue from its medical equipment business totaled RUR273 mln for the first six months of 2009, which represents a 48% decline in comparison with the same period of 2008. Nevertheless, sales in 2Q2009 grew by 54% in comparison with 1Q2009.

Pharmstandard launched 4 new products in 1H2009. New products contribution was RUR9 million for 1H2009.

Sales structure – 1H 2009, RUR mln.

Conference Call

Pharmstandard is pleased to invite the investment community to a sales results conference call with the management of the company followed by a Q&A session.

Tuesday, July 21, 2009

09:00 New York

14:00 London

17:00 Moscow

To join the conference please register on-line in advance using the link below:
https://eventreg1.conferencing.com/webportal3/reg.html?Acc=916302&Conf=167425

or dial:

International Call-in Number:  +44 (0)20 7162 0025

US Toll Number : +1 334 323 6201

*We recommend that participants start dialling in 5-10 minutes prior to ensure a timely start to the conference call.
Conference call presentation will be available on Tuesday,21 July 2009 on Company’s web-site:
https://www.pharmstd.ru/investors_en/investor/p2/

Pharmstandard will be represented by:

Igor Krylov, CEO

Elena Arkhangelskaya, CFO

Anton Golubok, IR

The conference call replay will be available through July 26, 2009.
International Replay Number: +44 (0)20 7031 4064
US Toll Replay Number: +1 954 334 0342
Replay Access Code: 841046