Pharmstandard Rallies on Foreigner Limit Report: Moscow Mover
OAO Pharmstandard, Russia’s largest drugmaker, is poised for the biggest gain in three months following a report the country plans to limit exposure of foreign pharmaceutical companies to the local market.
Pharmstandard rallied as much as 6.2 percent before trading up 5.1 percent at 1,639 rubles by 3:35 p.m. in Moscow. The company’s global depositary receipts increased 2.3 percent to $16.37 in London. The stock is down 2.1 percent in 2012, compared with a 5.6 percent advance for Moscow’s Micex index.
The Russian government plans to limit state imports of foreign pharmaceuticals to stimulate domestic production, Vedomosti reported today, citing draft decrees by the Economy Ministry. Foreign drug suppliers, with the exception of Belorussian companies, may be banned from participating in state auctions if the Russian list of approved drugs already contains two or more similar products, Vedomosti said.
Pharmstandard will “benefit from state procurement” as the company “produces a wide range of third-party products for its foreign partners,” Ksenia Arutyunova, an analyst at Rye, MAN & Gor Securities, said in an e-mailed note.
OAO Veropharm (VRPH), a Russian drugmaker, added 0.8 percent to 840 rubles. The stock has lost 4.9 percent this year.
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