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. Last Updated: 07/27/2016

IPO Values Drug Firm At $2.2Bln

Pharmstandard, the drug maker part-owned by Roman Abramovich's Millhouse Capital, has raised $880 million in an initial public offering that the company said Friday valued it at $2.2 billion.

Pharmstandard, the largest Russian pharmaceuticals company operating on the domestic market and the first from the sector to float, said it had sold shares in Moscow at $58.20 apiece and global depositary receipts in London at $14.55 each.

The combined offering of existing shares and GDRs represents 40 percent of Pharmstandard's equity, and raised $880 million for its shareholders, before an overallotment option.

Core owners Viktor Kharitonin, Yegor Kulkov and Millhouse Capital, Abramovich's investment vehicle, sold shares via the IPO. Citibank and UBS advised on the offering.

The company, a maker of generic drugs, operates five manufacturing facilities in the country and sells medical equipment.

The float follows Pharmstandard's acquisition last year of Masterlek and with it a product portfolio including antiviral drug Arbidol, the market leader in the country ahead of Pfizer's Viagra anti-impotence treatment.

In its 2006 results, Pharmstandard said sales rose 50 percent to 8.52 billion rubles ($324 million) while net profits gained 109 percent to 1.9 billion rubles ($72 million). Only 8 percent of overall sales were tied to a government drug reimbursement program.

Reuters, MT