PHARMSTANDARD – LEADING RUSSIAN PHARMACEUTICAL COMPANY

9M/3Q2013 Sales Results Presentation

Igor KrylovElena Arkhangelskaya

9M/3Q2013 Sales Results (24.10.13) 1

Market Dynamics and Structure. 1H2013.

29M/3Q2013 Sales Results (24.10.13)

287,3 328,1

371,6 408,9

+14,2%

+13,3%

+10,1%

0

50

100

150

200

250

300

350

400

450

1H2010 1H2011 1H2012 1H2013

Rtl

.RU

R,

bln

.

204,9 236,2

260,8

296,8

+15,3%

+10,4%

+13,8%

0

50

100

150

200

250

300

350

1H2010 1H2011 1H2012 1H2013

Rtl

.RU

R,

bln

.

Market structure, 1H2012 vs 1H2013

COMMERCIAL

HOSPITAL

REIMBURSEMENT

2012

2013

70%16%

14%

73%

14%

13%

Russian pharmaceutical market dynamics, total.

Russian pharmaceutical market dynamics, retail

Source:IMS

Leading Pharmaceutical company in Russia

The only Russian pharmaceutical company among the top-10 largest players, one of the market leaders

39M/3Q2013 Sales Results (24.10.13)

2,7%

2,9%

3,0%

3,0%

3,3%

3,4%

3,5%

4,0%

4,4%

5,0%

Russian Pharmaceutical Market – Retail (1H2013)Russian Pharmaceutical Market – Total (1H2013)

2,6%

2,8%

2,8%

2,8%

3,0%

3,4%

3,5%

3,6%

3,9%

5,2%

Source:IMS

# 1 OTC and Local Company with significant market shares on the Russian market

49M/3Q2013 Sales Results (24.10.13)

Russian Pharmaceutical Market – OTC Retail (1H2013)Russian Pharmaceutical Market – Local (1H2013)

Leading Pharmaceutical company in Russia (continued)

Source:IMS

5

Source: Company data

Key statistics and highlights. 9M2013

Key statistics(mln RUR)

9M/3Q2013 Sales Results (24.10.13)

Key achievements and developments

• Organic sales – pharmaceutical products produced by Pharmstandard - showed significant growth of 19% y/y

• Arbidol® sales demonstrate significant growth – 20% y/y

• Amixin remained it’s positions of a growth leader – 57% y/y reaching RUR922m in 9M2013 sales

• Government procurement auctions have been moved to 4Q causing a significant change in Pharmstandard revenue structure in 2013

• Pharmstandard holds #1 position on the Russian Retail OTC market and among local players by revenue

9M2013 9M2012 Change, (%)

Pharmaceutical products 27,888 30,262 -7.8%

Produced by Pharmstandard 16,463 13,802 19,3%

OTC 11,920 10,158 17,3%

Rx 4,543 3,644 24,7%

TPP 10,678 15,842 -32,6%

Other - API 747 618 20,8%

Medical Equipment 679 640 6,1%

Including Pharmapark LLC, Biomed named afted I.I. Mechnikov, LEKKO CJSC

1 087 341 219,0%

Total Sales 28,567 30,902 -7,6%

Brand Therapeutic segment

9M2013 sales

9M2012 sales

Sales growth

% growth

OTC

Arbidol® Anti-viral 3,038 2,540 498 20%

Complivit® Minerals and Vitamins 1 086 939 147 16%

Amixin® Anti-viral 880 544 336 62%

Afobazol® Tranquillizer 818 591 228 39%

Acipol® Anti-fungal 410 266 144 54%

Ingalypt® Throat preparations 333 197 136 69%

Next Analgesics 122 30 92 304%

Rx

Phosphogliv Insulin 811 718 93 13%

Biosulin Insulin 439 368 71 19%

Combilipen Vitamin B1 431 352 79 22%

Pentalgin Anti-viral 218 133 85 64%

Formetine Diabetes 168 78 90 114%

Azitrox® Antibiotics 158 107 51 48%

6

Source: Company data

Top Pharmaceutical Product Drivers, 9M2013

ОТС 9M2013 sales in went up to RUR11,920m (+17%).

Arbidol® demonstrated 20% growth vs 9M 2012 reaching RUR3,038 m in sales.

Rx 9M2013 sales demonstrated 25% growth and reached RUR4,543m. Key growth drivers were Phosphogliv, Combilipen, Pentalgin and Formetine.

9M/3Q2013 Sales Results (24.10.13)

7

9M2013 Sales Structure

Pharmaceutical products

97.6%

OTC 71.5%

TPP

38.3%

Rx28.5%

Medical equipment

2.4%

Organic sales

59.8%

API

1.9%

Therapeutic focus:• Analgesics• Cough & cold • Vitamins • Anti-viral • Anti-fungal

Product portfolio includes:• Coronary Therapy• Acid pump inhibitors• Nitrites & nitrates• ACE inhibitors• Alimentary tract

metabolism

Product portfolio includes:• Mabtera®• Velcade®• Pulmozyme®• IRS-19® & Imudon®• Coagil VII• Presista®• Mildronate®• Other

9M/3Q2013 Sales Results (24.10.13)

Third Party Products. Close-up.

-

2 000

4 000

6 000

8 000

10 000

12 000

9M2012 9M2013

0

1000

2000

3000

4000

5000

6000

9M2012 9M2013

9

Source: Company data

Third Party Products, 9M2013

Government procurement(mln RUR)

Commercial segment (mln RUR)

(53%)

5,400

11,472

Commercial TPP sales reached RUR5,278m (+21%)primarily driven by Reduksin®, Tamiflu and Atimos®

TPP sales decrease as of 9M2013 is directly attributed toGovernment procurement segment decline due tochanges in government purchases system of auctionsunder7 Nosologies Federal Program

21%5,278

4,370

9M/3Q2013 Sales Results (24.10.13)

Other

Insivo®

Tamiflu®

Mildronate®

IRS-19®,Imudon®

Reduksin®

OTHER

Velcade®

Intellence®

Presista®

Mabthera®

Coagil-VII®

Infibeta®

Velcade®

The partner of choice for multinational players

10

The Company is a partner of choice for major international pharmaceutical corporations in their entering the Russian market and with respect to product localization, primarily due to its experience, transparent operations and high quality manufacturing

Partners Areas of co-operation Products Capacity

• Partnership since 2010• Secondary packaging• Distribution• Participation in public tenders

• Pharmstandard-UfaVITA JSC, Ufa (Mabthera®, Pulmozyme®)

• Pharmstandard-Leksredstva JSC,Kursk (Tamiflu®)

• Partnership since 2009• Registration• Full cycle manufacturing• Secondary packaging• Distribution• Participation in public tenders

• Pharmstandard-UfaVITA JSC, Ufa

• Partnership since 2008• Full cycle manufacturing• Distribution and promotion• Participation in public tenders

• Pharmstandard-Leksredstva JSC, Kursk (Cyclodol®)

• Pharmstandard-UfaVITA JSC, Ufa (Mildronate®)

• Partnership since 2007• Full cycle manufacturing• Distribution

• Pharmstandard-Tomskhimpharm JSC, Tomsk

Pulmozyme® Tamiflu® Mabthera®

Intelence® Velcade® Prezista®

Cyclodol® Mildronate®

IRS-19® Imudon®

Insivo® Edurant®

10

Auctions. 2013.

1111

9M2013 TPP sales amounted to RUR 10,678m. Significant amount of auctions were moved to 3Q and 4Q of 2013 causing a significant change to the allocation of revenuein 2013 in comparison with 2012

Brand Status Partner Revenue, 9M2013, RURm Budgeted revenue, year-end 2013, RURm

Auctions announced for year-end 2013, RURm*

Velcade® RX Johnson&Johnson 499,3 6 640,2

Intellence® RX Johnson&Johnson 288 165,6 49,2

Infibeta RX LLC Generium 220,6 1,1 596,7

Coagil® RX LLC Generium, Lekko 407,8 - 3 021,4

Mabthera® RX Hoffman-la-Roche 294,1 168,4 8 099,1

Prezista® RX Johnson&Johnson 949,5 329,6 51,3

Pulmozyme® RX Hoffman-la-Roche 621,6 28,8 1 185,7

Rastan RXPharmstandard-UfaVita JSC

- 201 180

Revlimid RXCelgene International Holdings Corporation

247,3 - -

Total 2 408,2 1 193 19 823,6

*might be subject to insignificant changes

Appendix I. Top Brands.

INNOVATIONS. AFFORDABILITY. QUALITY

13

Source: Company data

9M2013 / 3Q2013 Best Selling Brands

1H2013 Sales Results (25.07.13)

9M2013 9M2013 9M2012

BrandVolume

(mln packs)Sales

(RURm)% of total

salesVolume

(mln packs)Sales

(RURm)% of total

salesChange

(mln RUR) %

Arbidol 15,13 3 037,63 18% 15,76 2 540,09 18% 498 19,6%Pentalgin 20,84 1 618,31 10% 28,70 1 844,33 13% -226 -12,3%Complivit 10,83 1 085,93 7% 9,93 938,55 7% 147 15,7%Amixin 1,98 921,66 6% 1,30 585,73 4% 336 57,4%Aphobazolum 4,51 818,78 5% 3,80 591,00 4% 228 38,5%Phosphogliv 1,91 810,95 5% 1,89 717,86 5% 93 13,0%Flucostat 5,01 638,48 4% 4,60 561,57 4% 77 13,7%Biosulin 0,67 439,46 3% 0,64 368,15 3% 71 19,4%Combilipen 3,94 430,80 3% 3,39 351,98 3% 79 22,4%Codelac 5,27 429,19 3% 4,52 370,96 3% 58 15,7%Top 10 total 70,09 10 231,19 62% 74,52 8 870,23 64% 1 361 15,3%

Other brands 341,63 6 231,53 38% 321,67 4 931,65 36% 1 179 24,4%

Total Sales 411,73 16 462,71 100% 396,19 13 801,87 100% 2 540 18,5%

3Q2013 2Q2013 2Q2012

BrandVolume

(mln packs)Sales

(mln RUR)% of total

salesVolume

(mln packs)Sales

(mln RUR)% of total

salesChange

(mln RUR) %

Arbidol 9,64 1 901,60 28% 11 1 889,29 31% 12 0,7%Pentalgin 7,64 581,92 8% 9 647,51 11% -66 -10,1%Amixin 0,89 447,88 6% 1 317,99 5% 130 40,8%Complivit 3,59 358,27 5% 3 273,88 5% 84 30,8%Aphobazolum 1,93 349,69 5% 2 293,57 5% 56 19,1%Phosphogliv 0,68 285,75 4% 1 249,21 4% 37 14,7%Flucostat 3,36 239,09 3% 2 208,08 3% 31 14,9%Codelac 2,03 165,21 2% 1 94,37 2% 71 75,1%Combilipen 1,33 146,10 2% 1 127,66 2% 18 14,4%Biosulin 0,21 133,21 2% 0 130,41 2% 3 2,1%Top 10 total 31,29 4 608,72 67% 31,23 4 231,98 70% 377 8,9%

Other brands 115,53 2 305,13 33% 117,44 1 799,28 30% 3 164 186,6%

Total Sales 146,82 6 913,84 100% 148,67 6 031,26 100% 3 541 59,7%

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Source: Company data

9M/3Q2013 TOP-10 OTC Brands

1H2013 Sales Results (25.07.13)

9M2013 9M2013 9M2012

BrandVolume

(mln packs)Sales

(mln RUR)% of total

salesVolume

(mln packs)Sales

(mln RUR)% of total

salesChange

(mln RUR) %

Arbidol 15,13 3 037,63 25% 15,76 2 540,09 25% 498 19,6%Pentalgin 17,52 1 400,51 12% 26,18 1 711,48 17% -311 -18,2%Complivit 10,83 1 085,93 9% 9,93 938,55 9% 147 15,7%Amixin 1,77 880,22 7% 1,17 543,85 5% 336 61,9%Aphobazolum 4,51 818,78 7% 3,80 591,00 6% 228 38,5%Flucostat 5,00 637,94 5% 4,56 556,17 5% 82 14,7%Acipol 2,39 409,58 3% 1,78 266,05 3% 144 54,0%Codelac 4,67 366,78 3% 4,07 330,36 3% 36 11,0%Ingalypt 5,27 333,37 3% - - 0% 333 -Corvalol 33,43 240,45 2% 31,55 223,33 2% 17 7,7%Top 10 total 100,53 9 211,19 77% 98,81 7 700,88 76% 1 510 19,6%

Other brands 261,53 2 708,89 23% 238,09 2 457,34 24% 480 21,6%

Total Sales 362,06 11 920,08 100% 336,91 10 158,22 100% 1 991 20,1%

3Q2013 3Q2013 3Q2012

BrandVolume

(mln packs)Sales

(mln RUR)% of total

salesVolume

(mln packs)Sales

(mln RUR)% of total

salesChange

(mln RUR) %

Arbidol 9,64 1 901,60 36% 11,44 1 889,29 41% 12 0,7%Pentalgin 6,23 499,33 9% 7,81 571,78 12% -72 -12,7%Complivit 0,86 447,88 8% 0,62 292,22 6% 156 53,3%Amixin 3,59 358,27 7% 3,00 273,88 6% 84 30,8%Aphobazolum 1,93 349,69 7% 1,88 293,57 6% 56 19,1%Flucostat 1,82 239,09 5% 1,68 206,56 4% 33 15,7%Ingalypt 2,61 166,67 3% 1,59 72,03 2% 95 131,4%Codelac 1,91 150,38 3% 0,92 67,92 1% 82 121,4%Acipol 0,85 145,60 3% 0,57 84,81 2% 61 71,7%Corvalol 9,09 65,88 1% 10,29 73,45 2% -8 -10,3%Top 10 total 38,52 4 324,39 82% 39,80 3 825,52 82% 499 13,0%Other brands 91,10 960,47 18% 87,93 821,71 18% 1 505 186,9%

Total Sales 129,62 5 284,86 100% 127,73 4 647,23 100% 2 004 43,3%

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Source: Company data

9M2013 / 3Q2013 TOP-10 Rx Brands

1H2013 Sales Results (25.07.13)

9M2013 9M2013 9M2012

BrandVolume

(mln packs)Sales

(mln RUR)% of total

salesVolume

(mln packs)Sales

(mln RUR)% of total

salesChange

(mln RUR) %

Phosphogliv® 1,91 810,95 18% 1,89 717,86 20% 93 13,0%Biosulin® 0,67 439,46 10% 0,64 368,15 10% 71 19,4%Combilipen® 3,94 430,80 9% 3,39 351,98 10% 79 22,4%Pentalgin® 3,31 217,80 5% 2,51 132,85 4% 85 63,9%Octolipen® 0,94 210,17 5% 0,93 194,79 5% 15 7,9%Altevir® 0,16 179,47 4% - - 0% 179 -Formetine® 1,57 168,26 4% - - 0% 168 -Terpincodum® 0,94 160,63 4% - - 0% 161 -Azitrox® 0,90 158,30 3% 0,65 106,91 3% 51 48,1%Picamilonum® 3,07 135,73 3% 2,95 124,63 3% 11 8,9%Top 10 total 17,41 2 911,57 64% 12,95 1 997,17 55% 914 45,8%

Other brands 32,25 1 631,06 36% 43,38 1 646,48 45% 113 8,7%

Total Sales 49,66 4 542,63 100% 56,33 3 643,66 100% 1 027 31,2%

3Q2013 3Q2013 3Q2012

BrandVolume

(mln packs)Sales

(mln RUR)% of total

salesVolume

(mln packs)Sales

(mln RUR)% of total

salesChange

(mln RUR) %

Phosphogliv® 0,68 285,75 18% 0,65 249,21 18% 37 14,7%Biosulin® 0,21 133,21 8% 0,24 130,41 9% 3 2,1%Combilipen® 1,33 146,10 9% 1,21 127,66 9% 18 14,4%Octolipen® 0,33 76,09 5% 0,30 62,46 5% 14 21,8%Pentalgin® 1,41 82,59 5% 1,40 75,74 5% 7 9,0%Azitrox® 0,36 64,07 4% 0,25 42,08 3% 22 52,3%Altevir® 0,09 107,58 7% - - 0% 108 -Formetine® 0,57 61,76 4% - - 0% 62 -Terpincodum® 0,40 69,73 4% 0,27 43,12 3% 27 61,7%Picamilonum® 1,00 44,75 3% 1,08 46,17 3% -1 -3,1%Top 10 total 6,39 1 071,63 66% 5,40 776,85 56% 295 37,9%

Other brands 10,82 557,35 34% 15,13 607,18 44% 1 402 306,4%

Total Sales 17,21 1 628,99 100% 20,53 1 384,03 100% 1 697 137,5%

Appendix II. Spin-off. Details.

Overview of Branded OTC Spin-Off Structure

17

Current Structure

Pharmaceutical Products

Medical Equipment

Other

Rx OTCActive

PharmaceuticalIngredients

Third Party Products

Branded OTC (1)

Non-brandedOTC

Own Products

Branded OTC (1)

Branded OTC Post Spin-Off

OTCPharm JSC

• 27 brands / 114 SKUs

• Key therapeutic categories

– Anti-cold and flu

– Non-narcotics and antipyretics

– Multivitamins with minerals

• 2012 sales volume: 153m packs

• 2012 net revenue: RUR12.7bn

• 2012 operating income: RUR4.5bn

• Supported by fully fledged marketing

Infrastructure

• Contract manufacturing with Pharmstandard

• Other contracts as necessary for operations

• 9M2013 sales demonstrated 19% growth and

reached RUR10.2bn y/y

2012 net revenue: RUR51.4bn2012 EBITDA: RUR13.5bn

25% of Pharmstandard 2012 net revenue

33% of Pharmstandard 2012 profitability

2012 net revenue: RUR50.1bn

2012 EBITDA: RUR13.2bn

2012 net revenue: RUR12.7bn

2012 EBITDA:RUR4.5bn

Spin-Off Timeline

18

27 Sep 2013

�ESM to discuss and vote on spin-off

Jul’13 Oct’13 Nov’13 Dec’13 Jan’14 Feb’14

11 Nov 2013

� Second publication of spin-off approval by ESM

�Period for Pharmstandard shareholders to apply for buy-back ends

15 – 18 Nov 2013

�Pharmstandard acquires shares from shareholders that applied for buy-back

13 Nov 2013

�Documents on OTCPharmregistration are filed with tax authorities

28 Nov 2013

�Registration of OTCPharm

� Issue of the OTCPharmshares

30 Jan 2014

�Recordal of the IP transfer from Pharmstandard to OTCPharm and of the license agreements

Feb - Mar 2014

�OTCPharm is fully operational

�OTCPharm obtains pharmaceutical license

�Certain assets, medicine registration certificates and employees are transferred from Pharmstandard to OTCPharm

�Execution of the product manufacturing contracts

Sep’13

5 Jul 2013

�Pharmstandard BoD convened two Extraordinary Shareholders Meetings (“ESMs”)

Upon

Spin-Off

Approval by

Shareholders

Pharmstandard gained full support of voting shareholders – 95% votes were in favor of the spin-off

19

Disclaimer and Confidentiality RequirementsThis presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of anoffer to buy or acquire securities of Pharmstandard JSC (the “Company”) or any of its affiliates in any jurisdiction or an inducementto enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied onin connection with, any contract or commitment or investment decision whatsoever.

This presentation may contain 'forward-looking statements'. These statements may include the words "anticipate", "believe","intend", "estimate", "expect" and words of similar meaning. All statements other than statements of historical facts, possiblycontained in this presentation, including, without limitation, those regarding the Company’s financial position, business strategy,plans and objectives of management for future operations (including development plans and objectives relating to the Company'sprojects and services) are forward-looking statements. Such forward-looking statements involve known and unknown risks,uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to bematerially different from results, performance or achievements expressed or implied by such forward-looking statements. Risks anduncertainties include, without limitation, general industry conditions and competition; economic conditions, such as interest rateand currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in newproduct development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental lawsand regulations; and trends toward health care cost containment. Such forward-looking statements are based on numerousassumptions regarding the Company's present and future business strategies and the environment in which the Company willoperate in the future. These forward-looking statements speak only as at the date of this presentation.

The Company does not undertake to update any forward-looking statements as a result of new information or future events ordevelopments.

The Company will use reasonable efforts to include up-to-date and accurate information in this Internet site, but make norepresentations, warranties, or assurances as to the accuracy, currency, or completeness of the information provided. The Companyshall not be liable for any damages or injury resulting from your access to, or inability to access, this Internet site, or from yourreliance on any information provided at this Internet site.

The information and opinions contained in this document are provided as at the date of this presentation and are subject to changewithout notice.

All information, unless expressly specified herein, is from Company data.

1H2013 Sales Results (25.07.13)

Contacts

20

JSC PharmstandardLikhachevsky drive, 5 «B» Moscow region,Dolgoprudny, Russia, 141700.Tel/Fax: (495) 970-0030/32IR ex.2824www.pharmstd.ru

1H2013 Sales Results (25.07.13)