Alapis Consolidated Financial Results -- First Quarter 2010 (1/1 - 31/03/2010)

ATHENS, GREECE--(Marketwire - June 01, 2010) - ALAPIS HOLDING INDUSTRIAL AND COMMERCIAL SOCIETE ANONYME OF PHARMACEUTICAL, CHEMICAL AND ORGANIC PRODUCTS S.A. (ATHEX: ALAPIS) (“Alapis” or the “Group”) announced its consolidated financial results for the first quarter of 2010.

Consolidated turnover for the first quarter 2010, increased by 15.6% standing at EUR 272.2 mil. as opposed to EUR 235.6 mil. in the first quarter of 2009. The increase is mainly attributed to the pharma division, the sales of which increased by 24.5%.

Consolidated Earnings before Tax, Interest and Depreciation (EBITDA) increased by 6.4% in the first quarter of 2010 standing at EUR 80.7 mil. compared to EUR 75.8 mil. in the first quarter of 2009. The increase is mainly attributed to the significant growth of the pharma division that offset the slowdown of the other divisions.

The consolidated earnings after tax and minorities amounted in the first quarter of 2010 to EUR 20.5 mil. versus EUR 30.8 mil. in the first quarter of 2009 marking a 33.6% decrease, that is mainly attributed to the increase of the depreciation by 65.0%, which amounted to EUR 42.1mil. versus EUR 25.6 mil. in the first quarter of 2009.

Pharma Division
The turnover of the pharma division in the first quarter of 2010 amounted to EUR 202.3 mil. versus EUR 162.5 mil. in the first quarter of 2009 increasing by 24.5%. Earnings before Tax, Interest and Depreciation (EBITDA) formed at EUR 68.4 mil. versus EUR 56.0 mil. in the first quarter of 2009 marking a 22.2% increase. ΕΒΙΤDA margin stood at 33.8% versus 34.4% in first quarter of 2009. The aforementioned growth of sales and operating earnings, is attributed to the contribution of the generic products that the Group launched within 2009.

Medical Devices and Diagnostics Division
The turnover of the medical devices and diagnostics division in the first quarter of 2010 amounted to EUR 27.3 mil. versus EUR 27.5 mil. in the respective period last year, slightly decreased by 0.5%. Earnings before Tax, Interest and Depreciation (EBITDA) formed at EUR 6.9 mil. versus EUR 12.4 mil. in the first quarter of 2009 marking a 44.1% decrease. This decrease is attributed to the new market conditions.

Veterinary Division
The turnover of the veterinary division in the first quarter of 2010 amounted to EUR 13.2 mil. versus EUR 20.6 mil. in the first quarter of 2009 marking a 35.8% decrease. Earnings before Tax, Interest and Depreciation (EBITDA) formed at EUR 2.6 mil. versus EUR 6.5 mil. in the first quarter of 2009 marking a 60.8% decrease given that the demand of this division has been significantly affected by the financial crisis.

Non-health Division (Cosmetics and Detergents)
The turnover of the non-health division in the first quarter of 2010 amounted to EUR 29.3 mil. versus EUR 21.0 mil. in the first quarter of 2009 marking a 40.0% increase. The increase is mainly attributed to the detergent activity which has enhanced the Group’s competitive position in this specific market. Earnings before Tax, Interest and Depreciation (EBITDA) of the sector amounted to EUR 2.8 mil. in the first quarter of 2010 versus EUR 3.7 mil. in the first quarter of 2009 marking a 23.4% decrease. This decrease is mainly attributed to the lower profit margins of the cosmetics activity, which were not offset by the increasing, in absolute terms, EBITDA of the detergents activity.

First quarter business developments

• The Group completed the launch of eight (8) new generic products, in the fields of oncology, hematology, antibiotics, dermatology and Central Neurological System, enhancing in this way its portfolio in these crucial categories.
• The Group’s position in the generics field has been enhanced and empowered by the establishment of our already launched products which exceed one hundred and seventy five (175).
• The Group has successfully relaunched the Shiseido line of products in seventy (70) points of sales through Shiseido Hellas.
• The Group successfully completed four (4) new generics development and three (3) generic plus developments, for one of which there was a filling submitted for patent approval.
• Alapis Research & Development department, has completed its first three (3) publications in scientific journals on the research of prototype medicines in cardiology.
• The New York based Gerolymatos Inc was acquired, a fact which allows the Group to expand its activities in OTC, cosmetics and nutrition supplements, in the U.S. market.