Russian pharmaceutical company, Protek, has posted a 1H 2010 net profit of 489.6 million roubles under IFRS.

The net result was sharply lower than the 2.3 billion roubles posted in 1H 2009, with EBITDA of 1.3 billion roubles, despite consolidated revenues increasing 10% year on year to 45.5 billion roubles.

Protek says its results reflect a range of factors that include a “new regulation on the Life Essential medicines pricing, a new procedure of setting of the wholesale and retail prices, strengthening of state control over every part of the goods producing chain, and as the result of the above – the strengthening of heavy price competition throughout the pharmaceutical market.”

Vadim Muzyaev, President of the Protek Group, was upbeat on the results and said the Group even managed to outpace the market in terms of revenue.

“In the reporting period, the Group has demonstrated sustainable revenue growth, its segments mostly exceeded the market growth. Our biggest company, CV Protek, strengthened its leadership position in wholesale distribution, this was achieved due to its strategy to increase market share in the first half of 2010: this is being confirmed by Pharmexpert ratings – both on an aggregate index and on gross sales volume. Revenue growth took place against a backdrop of lowering trade mark-ups, which was the consequence of new rules on state price control policy and a number of measures, connected to this, on re-structuring and revaluation of inventory, as well as the strengthening of price competition on the market.”