0. Pharmstandard Roadshow Presentation
1H 2007 results September 2007
Roadshow Presentation

1. Disclaimer and Confidentiality Requirements
This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of OJSC Pharmstandard (the “Company”) or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever.
This presentation has been prepared solely for use in connection with the possible offering of ordinary shares (the “Shares”) and global depositary receipts representing shares (“GDRs” and, together with the Shares, the “Securities”) in the Company (the “Offering”). This document is an advertisement and not a prospectus and any purchase of Securities in the Offering should be made solely on the basis of information contained in the prospectus and any supplemental prospectus to be published in respect of the Offering. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of Augment Investments Limited (the “Selling Shareholder”) or the Company or any of their respective affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.
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The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice.
All information not separately sourced is from Company data.

2. 1. Company Overview
Dr. Igor Krylov, CEO

3. 3 Building a top-3 pharmaceutical company in Russia
Our Strategy
Promote our market-leading brands to drive sales growth and profitability
Launch new products on a regular basis
Expand sales and marketing effort
Continue to actively control costs
Grow through acquisitions
Exploit opportunities from Federal Reimbursement Programme (FRP) as they arise
3 Building a top-3 pharmaceutical company in Russia

4. Promote our market-leading brands to drive sales growth and profitability
Leading domestic pharma trademarks by sales value in 2006
6 leading brands
“Top of mind” position with consumers
Significant brand loyalty
Exclusively produced by Pharmstandard
Produced by Pharmstandard
Source: Pharmexpert. Based on consumer prices, Rx and OTC products
Note:
1 Masterlek Brands

5. Launch new products on a regular basis
OTC Rx
OTC Rx
New products sales achieved RUR 127 mln or 3.4% from
total Pharmaceutical sales in 1H 2007
Source: Pharmexpert,

6. Expand sales and marketing effort
Real time data - ETMS
HQ Sales and marketing
National manager
1 manager
Regional manager
20 managers
OTC sales force
(131)
Rx sales force
(157)
2 managers
29 managers
OTC Rx
(incl. ENDO-Team)
All sales reps have medical education/work experience
Covers 75% of the Russian pharma market
Incentivised sales force—up to 33% bonus of annual salary
In 2007 looking to:
Increase “feet on the street” to over 350 sales people
Further specialise sales force by therapeutic area
Electronic Territory Management System (ETMS) system improving efficiency
3 Experienced sales force up to 340 sales persons1
Source: Company
Note: 1 As of 30 June 2007

7. Diversified Product Portfolio in 1H 2007
Pharmaceuticals
85% of 1H 2007 sales
Medical Devices
15% of 1H 2007 sales
OTC
70% of 1H 2007 sales
Rx1
15% of 1H 2007 sales
Therapeutic focus:
Analgesics
Cough & cold
Vitamins
Anti-viral
Anti-fungal
Product portfolio includes:
Acid pump inhibitors
Nitrites & nitrates
ACE inhibitors
Alimentary tract metabolism
Product portfolio includes:
Sterilisers
Distillers
Medical disposables
63% growth % growth % growth
52% revenue growth in 1H 2007
Source: Company
Note: Includes Other sales

8. #3 pharmaceutical company on Russian market
Market Share of Top-10 Companies in the Russian Pharma Market (% 1H 2007 value)1
Market Share of Domestic Pharmaceutical Producers (% 2006 value)1
3 #3 pharma company in Russia overall
3 #1 domestic pharma company – more than 3 times the size of the #2 domestic player
Source: Pharmexpert
Notes:
1 Based on sales in wholesale prices

9. A Leader in the Russian Commercial Segment
Market Share—Top 10 Companies1
Market Share—Top 10 Domestic Companies1 2 2
3 PHS is #1 in commercial segment
(commercial segment is 77% of the total market)
Source: Pharmexpert
Notes:
1 Commercial segment 2006, based on sales in wholesale prices

10. Continue to actively control costs
Pharmstandard strong margin rates:
Gross profit remain stable at 57%,
S&D – is constant at 17%,
G&A – decreased by 1% to 6%,
Net profit – remained constant at 22%,
EBITDA margin became 38% (in 1H 2006 EBITDA was 35%).
Source: Company
1 Pharmexpert, in wholesale prices
2 As at 30 June 2007

11. Pharmstandard 1H 2007 achievements
Leading domestic pharmaceutical company in Russia (measured by sales)
#3 pharma company overall in Russia by sales value in 1H 20071
#1 pharma company in the commercial segment by sales value in 1H 20071
Industry leading growth and profitability
Revenue growth +52% and achieved $169.7 mln in 1H 2007
EBITDA growth +67% and achieved $65.0 mln in 1H 2007 or 38% as % from sales
Market leading brands
6 brands among top-20 best selling domestic brands in Russia1
Arbidol®, Pentalgin®, Complivit®, Terpincod®, Codelac®, Flucostat®
Experienced sales force and modern and efficient manufacturing facilities
More than 340 sales reps2
Russian GMP compliant facilities, including lines at Kursk, some of which are EU GMP compliant
Fully integrated MasterLek company (distribution, SG&A cost, production ahead schedule)
Source: Company
1 Pharmexpert, in wholesale prices
2 As at 30 June 2007

12. 4. Financial Overview
Elena Arkhangelskaya, Chief Financial Officer

13. Our Portfolio growth in 1H 2007
IFRS basis
Pro-Forma basis

14. Rapidly Growing Revenue Profile
3,619
2,917
4,426
68%
15%
64%
19%
69% 1
3 Achieved 52% revenue growth in 1H 2007
Source: Company
Note:
1 Pro Forma assumes inclusion of Masterlek as part of Pharmstandard as of 1 January 2006

15. Competitive Cost Structure 1H 2007
Selling and Distribution Costs
General and Administration Costs
Source: Company reports
Note:
1 Pro Forma assumes inclusion of Masterlek as part of Pharmstandard as of 1 January 2006

16. Margin Expansion 1H 2007 Gross Profit EBITDA Source: Company reports
Note:
1 Pro Forma assumes inclusion of Masterlek as part of Pharmstandard as of 1 January 2006

17. Attractive Profitability Growth
HY Net Profit 2006–2007
21.4%
50% Net Profit growth in 1H 2007 (pro-forma)
Source: Company reports
Note:
1 Pro Forma assumes inclusion of Masterlek as part of Phamstandard as of 1 January 2006

18. Consolidated Balance Sheet and Capex
IFRS basis
Capital Expenditure
Debt summary
Facility A: US$91m (maturity Dec-2009/L+150)
Facility B: US$55m (maturity Dec-2011/L+190)
Net debt: US$128m

19. International companies
Growth Analysis Across Market Segments1
Domestic companies
International companies
3 Pharmstandard is growing in-line with its peers in the commercial segment
Source: Pharmexpert,
Note:
1 Based on sales in wholesale prices

20. Appendix

21. Russia—The World’s Fastest Growing Pharma Market
(in retail prices, US$bn)
Pharma market size (US$bn)
8.4
11.4
13.7
8.1
197.8
11.6
25.6
15.7
27.7
14.9
5.8
56.7
Population (in million)
142
187
1,315 33
108
340 45 61 60 83 58 25
128
Source: DSM, EIU
3 Russia was the fastest growing pharma market in 2005–2006

22. Russian Pharma Market Set to Expand
Pharmaceutical Consumption Per Capita in Russia($)
Drug consumption per capita amongst lowest in Europe
Rapid market growth expected to continue
Russia was the fastest growing market globally in
Pharmaceutical Consumption Per Capita by Country($)
Source: Pharmexpert, EIU Market Indicators

23. Pharmstandard Key Development Milestones
Leksredstva plant (Kursk)
4Q03:
Acquisition of ICN’s business in Russia (five factories, distribution centres and pharmacy chain)
2Q04:
Close Polypharm (pharma production facility)
3Q05:
Sale of Marbiopharm (pharma production facility)
May 2006:
Legal name changed from Biovit LLC to OJSC Pharmstandard
3Q06:
Acquisition of Masterlek (3.5% share of domestic Russian Pharma market by sales value)
4Q06:
New production of spray, tablets and capsules; central manufacture laboratory and renovation of production facilities
Total investment since 2004: approximately RUR 600m
Pre 2003:
Group consisted of two manu-facturing facilities (Ufa and Phytopharm) operating under Biovit LLC
2003
2004
2005
2006
2007
Q104:
New management team brought in with experience in international and domestic pharma companies
Jan 05:
Acquisition of TZMOI (Tyumen)—manufacturer of medical equipment
1H05:
Open centralised warehouse for pharmaceutical products in Moscow
End 2005:
Creation of holding company/ legal restructuring finalised
2H06:
Termination of production in Oktyabr plant in St Petersburg, production transferred to other existing sites
1H06:
New production of solutions, production of vitamins and insulin
Total investment since 2004: approximately RUR 730m
2007:
New production workshops for Rastan® and Phosphogliv®
Ufavita plant (Ufa)
Source: Company
Note: OJSC – Open Joint Stock Company, LLC – Limited Liability Company

24. Modern Production Facilities
Tomsk
Tyumen
Moscow
Ufa
Kursk
Tomskhimpharm
Capacity: 208m
TZMOI
Ufavita
Capacity: 169m
Leksredstva
Capacity: 645m
Nizhny Novgorod
Phytopharm
Capacity: 48m
Pharmstandard HQ
Source: Company
Note: Capacity in packs. Figures shown are as of 31 December 2006

25. Pharma Portfolio by Therapeutic Segment
Company sales split as at 1H 2007
Sales = RUR 4,426 million (1H 2007) OTC = 81% / Rx = 18%
Source: Company sales

26. Production Facilities – Summary Overview
Source: Company.
Note: Total capacity for pharmaceutical production in 2006 excludes capacity from Oktyabr factory (St. Petersburg) which closed in Q3 2006
Total capacity calculations assume 8-hour shifts and 7 day working week

27. Breakdown of Sales for 1H 2007 by Distributor
Top 5 distributors accounted for 50% of pharmaceutical product sales in 1H 2007
Typical payment terms for distributors:
Regional and export distributors: 30–60 days
National distributors: 60–90 days
FRP program: 180 days
Top 5 Distributors – 2006
Distributor
% of sales
Genesis 19
SIA International 9
Katren 8
Protek
Rosta 6
Total 50
Source: Company
Note: Manufacturers’ prices

28. Our Portfolio – Top 15 Pharmaceutical Products1) 1)
Source: Company
Notes:
1 Sales only formed part of consolidated results from 2 August 2006

29. Pharmstandard has a lower exposure to the FRP compared to its peers
Low Exposure to FRP
Composition of Leading Companies’ Sales in Russia by Market Segment in 2006
Pharmstandard has a lower exposure to the FRP compared to its peers
Source: Pharmexpert
Note: Based on wholesale prices in US$

30. Product Pipeline
Near term pipeline Products in registration
Products in development
OTC Rx
3 Pipeline of OTC and Rx products supports Pharmstandard’s growth story

31. Core Comparables Benchmarking
Sales growth (2006)
Gross margin (2006)
EBITDA margin (2006)
Net profit margin (2006)
Source: Company reports. Veropharm figures based on equity research as 2006 results not available
3 PHS has industry leading growth and profitability

32. Arbidol®—#1 Pharma Brand in Russia
Leading Products in Anti-infective Systemic Use Segment (1H 2007)
Arbidol®
Captured #1 brand position, in part, through active promotion by Pharmstandard sales force
Acquired as part of Masterlek transaction
Original product developed in 1987, active marketing launched in 2000
Segment Sales Dynamics1,2
Source: Pharmexpert
Note: Remodelled to reflect current categories
Source: Company
1 Source: Pharmexpert
2 Based on consumer prices

33. Pentalgin—#1 Pain Reliever (Non-Narcotic)
Top-10 Products in Analgesics Segment (2006)
Looking to launch new (improved) formulation of Pentalgin in 2007 to capitalise on Pentalgin’s brand recognition
Franchise includes Pentalgin-N® and Pentalgin-ICN®
First launched Pentalgin-ICN® in 1999 and followed with launch of Pentalgin-N® in 2002
Steadily gained market share since 2001
Annual Segment Sales Dynamics1,2
Source: Pharmexpert
Source: Company
1 Source: Pharmexpert
2 Based on consumer prices

34. Phosphogliv® – Successful Rx Product Launch
Top products in Hepatic Protectors segment (2006)
Launched in 2005
Novel product in-licensed from the Institute of Biomedical Chemistry
Premium priced product based on superior efficacy
Patent protected until 2018
Clinically validated
2nd generation combination therapy with anti-viral, anti-inflammatory and immunomodulating properties
Annual segment sales dynamics1
Source: Pharmexpert
Source: Company
1 Source: Pharmexpert
2 Based on consumer prices