Pharmstandard Roadshow Presentation 1 H 2007 results September

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

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”). 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Each of the Company and the Selling Shareholder and their respective agents, employees and advisers, expressly disclaims any obligation or undertaking to update any forward-looking statements contained herein. 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. 1 Roadshow Presentation

1. Company Overview Dr. Igor Krylov, CEO Roadshow Presentation

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 3 Roadshow Presentation Building a top-3 pharmaceutical company in Russia

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 4 Roadshow Presentation

Rx OTC Launch new products on a regular basis New products sales achieved RUR 127 mln or 3. 4% from total Pharmaceutical sales in 1 H 2007 Source: 5 Pharmexpert, Roadshow Presentation

Expand sales and marketing effort HQ Sales and marketing § All sales reps have medical education/work experience § 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 OTC Rx (incl. ENDO-Team) National manager 1 manager National manager 2 managers Regional manager 20 managers Regional manager 29 managers OTC sales force (131) Rx sales force (157) therapeutic area – Electronic Territory Management System (ETMS) system improving efficiency 3 Source: Note: 6 Company 1 As of 30 June 2007 Roadshow Presentation Experienced sales force up to 340 sales persons 1 Real time data - ETMS pharma market Real time data - ETMS § Covers 75% of the Russian

Diversified Product Portfolio in 1 H 2007 Pharmaceuticals Medical Devices 85% of 1 H 2007 sales 15% of 1 H 2007 sales OTC 70% of 1 H 2007 sales Rx 1 15% of 1 H 2007 sales § Therapeutic focus: § Product portfolio includes: Ø Analgesics Ø Cough & cold Ø Vitamins Ø Anti-viral Ø Anti-fungal Ø Acid pump inhibitors Ø Nitrites & nitrates Ø ACE inhibitors Ø Alimentary tract metabolism 63% growth Source: Company Note: 1 Includes Other sales 7 Roadshow Presentation 54% growth 52% revenue growth in 1 H 2007 § Product portfolio includes: Ø Sterilisers Ø Distillers Ø Medical disposables 18% growth

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

A Leader in the Russian Commercial Segment Market Share—Top 10 Companies 1 Market Share—Top 10 Domestic Companies 1 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 9 Roadshow Presentation

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 1 H 2006 EBITDA was 35%). Source: Company 1 Pharmexpert, in wholesale prices 2 As at 30 June 2007 10 Roadshow Presentation

Pharmstandard 1 H 2007 achievements § Leading domestic pharmaceutical company in Russia (measured by sales) – #3 pharma company overall in Russia by sales value in 1 H 20071 – #1 pharma company in the commercial segment by sales value in 1 H 2007 1 § Industry leading growth and profitability – Revenue growth +52% and achieved $169. 7 mln in 1 H 2007 – EBITDA growth +67% and achieved $65. 0 mln in 1 H 2007 or 38% as % from sales § Market leading brands – 6 brands among top-20 best selling domestic brands in Russia 1 – Arbidol®, Pentalgin®, Complivit®, Terpincod®, Codelac®, Flucostat® § Experienced sales force and modern and efficient manufacturing facilities – More than 340 sales reps 2 – Russian GMP compliant facilities, including lines at Kursk, some of which are EU GMP compliant § Fully integrated Master. Lek company (distribution, SG&A cost, production ahead schedule) Source: Company 1 Pharmexpert, in wholesale prices 2 As at 30 June 2007 11 Roadshow Presentation

4. Financial Overview Elena Arkhangelskaya, Chief Financial Officer Roadshow Presentation

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

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

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

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

Attractive Profitability Growth HY Net Profit 2006– 2007 21. 4% 50% Net Profit growth in 1 H 2007 (pro-forma) Source: Company reports Note: 1 17 Pro Forma assumes inclusion of Masterlek as part of Phamstandard as of 1 January 2006 Roadshow Presentation

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

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

Appendix Roadshow Presentation

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 21 Roadshow Presentation Russia was the fastest growing pharma market in 2005 – 2006

Russian Pharma Market Set to Expand Pharmaceutical Consumption Per Capita in Russia($) § Drug consumption per capita amongst lowest in Europe § Rapid market growth expected to continue Pharmaceutical Consumption Per Capita by Country($) § Russia was the fastest growing market globally in 2004 -2006 Source: 22 Pharmexpert, EIU Market Indicators Roadshow Presentation

Pharmstandard Key Development Milestones Leksredstva plant (Kursk) 4 Q 03: 2 Q 04: 3 Q 05: Acquisition of ICN’s business in Russia (five factories, distribution centres and pharmacy chain) Sale of Close Polypharm (pharma production Marbiopharm (pharma production facility) May 2006: 3 Q 06: 4 Q 06: Legal name changed from Biovit LLC to OJSC Pharmstandard Acquisition of Masterlek (3. 5% share of domestic Russian Pharma market by sales value) New production of spray, tablets and capsules; central manufacture laboratory and renovation of production facilities Total investment since 2004: approximately RUR 600 m Pre 2003: Group consisted of two manufacturing facilities 2003 (Ufa and Phytopharm) operating under Biovit LLC 2004 2005 2006 2007 Q 104: Jan 05: 1 H 05: End 2005: 2 H 06: 1 H 06: New management team brought in with experience in international and domestic pharma companies Acquisition of TZMOI (Tyumen)— manufacturer of medical equipment Open centralised warehouse for pharmaceutical products in Moscow Creation of holding company/ legal restructuring finalised Termination of production in Oktyabr plant in St Petersburg, production transferred to other existing sites New production of solutions, production of vitamins and insulin Source: Note: 23 Company OJSC – Open Joint Stock Company, LLC – Limited Liability Company Roadshow Presentation Total investment since 2004: approximately RUR 730 m 2007: New production workshops for Rastan® and Phosphogliv® Ufavita plant (Ufa)

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

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

Production Facilities – Summary Overview Source: Note: 26 Company. Total capacity for pharmaceutical production in 2006 excludes capacity from Oktyabr factory (St. Petersburg) which closed in Q 3 2006 Total capacity calculations assume 8 -hour shifts and 7 day working week Roadshow Presentation

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

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

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

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

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 31 Roadshow Presentation PHS has industry leading growth and profitability

Arbidol®—#1 Pharma Brand in Russia Arbidol® Leading Products in Anti-infective Systemic Use Segment (1 H 2007) § 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 Dynamics 1, 2 Source: Pharmexpert Note: Remodelled to reflect current categories Source: 1 2 32 Company Source: Pharmexpert Based on consumer prices Roadshow Presentation

Pentalgin—#1 Pain Reliever (Non-Narcotic) Pentalgin 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 Dynamics 1, 2 Source: Pharmexpert Source: 1 2 33 Company Source: Pharmexpert Based on consumer prices Roadshow Presentation

Phosphogliv® – Successful Rx Product Launch Phosphogliv® 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 – 2 nd generation combination therapy with anti-viral, anti-inflammatory and immunomodulating properties Annual segment sales dynamics 1 Source: Pharmexpert Source: 1 2 34 Company Source: Pharmexpert Based on consumer prices Roadshow Presentation

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