Russia's biggest drug manufacturing company, OAO Pharmstandard (PHST), intends to sell its over-the-counter medicine business to raise funds, according to sources.
With assets valued at about $2.5 billion, the sale of Pharmstandard would provide a gateway to outsiders to the Russian market which is not easily accessible to foreign drug makers due to limitations set by the Russian government.
According to Pharmstandard's financial data, over-the-counter drug sales dropped by 4.5 percent to $451 million last year, accounting for 29 percent of the company's revenue, while revenue from prescription drugs rose by 33 percent due to sales growth. Revenue from third party over-the-counter products also increased by 30 percent.
Citigroup Inc. is reportedly helping Pharmstandard in the sale process but the firm's spokesperson had declined to comment.
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