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July 22, 2010 Octapharma AG Announces First Half Year Results and Gives Mid Term Market Outlook LACHEN, SWITZERLAND (July 29, 2010) – In the first half of 2010, Octapharma AG realized a turnover of €483M, a decrease of 10% compared to the same period in 2009.The cost of sales over the same period increased, resulting in a reduction in gross margin from 43% in 2009 to 38% in 2010. The increase in costs of sales was driven by a combination of lower turnover, a continued investment programme to increase production capacity, and investment in efficiency measures - the benefits of which will be seen in coming periods.. In addition, increased plasma costs reduced gross margin further. Continued development of new markets and increased R&D activities, including successful clinical trials of recombinant FVIII, increased operating expenses versus the same period in 2009. The operating income through June 2010 (earnings before interest and taxes) reached €107M (22% margin), compared with €173M (32% margin) in the first half of last year. “We expect that operating costs will lower in the second half of 2010 as we start to realize the investments we have made in making our operations more efficient, particularly related to plasma collection and production costs. ~Hence we also expect operating margins to improve from the second half of this year onwards”, commented Kim Björnstrup, Vice Chairman, Octapharma Group. Plasma Protein Industry’s Outlook for the Second Half 2010 and 2011 The first half of 2010 showed a slow down in the growth in the IVIG market – in part due to inventory reductions but also a general trend towards reduced growth of this market. In the area of plasma, collection a number of centres are closing for certain periods, which may bring down the present plasma glut. Prices are declining in government and hospital tenders worldwide as a consequence of oversupply as industry players attempt to bring down stocks levels. The pressure from the governments with special taxes on pharmaceutical sales will reduce the margins further in some countries. “We expect monthly sales to stay at the present level, though with increased volumes for the rest of 2010 to compensate for price reductions”, commented Kim Björnstrup.  Source: Octapharma’s corporate estimation based on available market information “Octapharma intends to overcome the present trend through the launch of new products including the novel human cell bases recombinant Factor VIII for the treatment of Hämophilia A”, added Kim Björnstrup. About Octapharma The Octapharma Group is an independent, Swiss-based biopharmaceutical company operating worldwide. Octapharma’s core business is the development, production, and sale of high-quality human proteins for the treatment of life-threatening diseases. The Group has more than 4,200 employees in 28 countries, and owns five modern, state-of-the-art production facilities in Austria, France, Germany, Sweden and Mexico, respectively. Octapharma’s company mission is to provide safe and effective biopharmaceutical products derived from human cells or blood plasma to patients in need of lifesaving therapy. For more information about the company please click here. © Octapharma AG, 2010
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