Moscow, 2 September 2010 – JSC «Pharmstandard» (LSE: PHST IL, RTS: PHST RU)  reports about acquisition of 100% shares of the ZAO «Vindexpharm».

Details of the deal:

ZAO «Vindexpharm», whose shares are purchased during the transaction, owns the trademark Acipol®, as well as two related trademarks which protect the original package and the logo of the drug.

In June 2010, Pharmstandard addressed the Federal Anti-Monopoly Service requesting a permit for purchase of 100% shares in ZAO «Vindexpharm». In August 2010, all the permitting documents required were obtained for entering into the purchase agreement.

The purchase will be paid for from own cash funds of Pharmstandard by the end of 2010.

About Acipol®

Acipol® is within the segment of probiotics. For the first time it was presented to the market in November 2006. Acipol® is used for prevention and treatment of disbacteriosis of the gastrointestinal tract and for prevention and treatment of conditions causing it, for adults and children starting the age of 3 months. Unlike other drugs used for treating disbacteriosis, Acipol® contains a bacterial culture of alive acidophilic bacteria and polysaccharide of kefir fungus, thereby Acipol® raises the immunologic responsiveness of the body, rather than only affects correctively the gastrointestinal microflora. Acipol is an over-the-counter medicine, and this fact makes it possible to increase the recognizability of the brand name by means of mass media. Acipol has a good track record among general practitioners. Starting June 2010,
JSC «Pharmstandard» is the exclusive distributor of Acipol® on the Russian market.

Russia’s total consumer market of probiotics in 2009 was 31 million packs and 5.2 billion rubles. The segment has been growing noticeably in monetary terms since 2007, up to 25% per annum according to the data Market Research Center «Pharmexpert».

After entry of Acipol to the Russian market, its retail sales amounted to more than 500 million rubles and 2.88 million packs from 2007 till 2009*. Acipol is one of the fastest-growing brand names in the probiotics segment, with annual growth exceeding 50%. The share of Acipol in the probiotics segment was 4.3% in 2009.

In the first half of 2010 retail sales of Acipol®  achieved 116,4 million RUR,  demonstrating increase in sales for 12% in comparison  with the same period of the 2009.