Russia's Veropharm posts higher profits, sales

MOSCOW (Reuters) - Russian drug maker Veropharm (VFRM.MM) said Thursday its first-half earnings rose about 76 percent to $19.4 million amid growing sales and a bigger share of high-margin medications in its product portfolio.

Veropharm, part of Russian Pharmacy Chain 36.6 (APTK.MM), posted first-half sales of $86.5 million, up 45.4 percent from $59.5 million in the first half of 2007.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) came in at $28.6 million, an increase of 67.9 percent year-on-year.

Its EBITDA margin improved to 33 percent from 28.6 percent in the first six months of last year.

"The company stakes more on high-margin oncological and medicare prescription drugs ... It also continues to control costs and actively promote its products," Maxim Arkhipov, corporate finance and investor relations director at Pharmacy Chain 36.6, told Reuters.

Veropharm said the share of prescription drugs in first-half sales rose to 65 percent from 54 percent a year ago, while the share of over-the-counter (OTC) drugs that may be sold without a prescription was unchanged at 8 percent.

Veropharm did not provide separate second-quarter results. According to Reuters calculations, quarterly earnings were $13.1 million, revenues $51.8 million and EBITDA $19.4 million.

Veropharm is one of the largest Russian pharmaceutical producers, with a market value of about $460 million. The company's net debt totalled $18.2 million at the end of June.

(Reporting by Maria Kiselyova; editing by Karen Foster)