PJSC PROMOMED demonstrates faster revenue growth, by 80% in Endocrinology and 41% in Oncology

PJSC PROMOMED demonstrates faster revenue growth, by 80%[1] in Endocrinology and by 41% in Oncology

February 20, 2025, Moscow – PJSC PROMOMED (MOEX: PRMD) (formerly "PROMOMED", the "Company", and together with its subsidiaries– the "Group") announces its operating results for 2024.

OPERATIONAL PERFORMANCE FOR 2024

• PROMOMED has created an endocrinological product portfolio that is unique in terms of breadth and capabilities in the fastest growing market segment both in Russia and abroad.
• In December 2024, the Company successfully launched the innovative drug Velgia® (INN[2] semaglutide) for the treatment of obesity of any severity. By December 31, 2024, more than 300 thousand packages of the drug were sold for a total amount of about one billion rubles.
• In 2024, the development of the latest generation of twinkretin class drug for the treatment of obesity and type II diabetes mellitus, Tirzetta® (INN tirzepatide), was completed ahead of schedule.
• The Company's endocrinology portfolio showed steady growth in 2024. The evolution index[3] was more than 142 (outstripping the growth of the relevant market by 8 INN by more than 42 percentage points).
• The oncology portfolio also showed steady growth. The evolution index for 2024 was 149 (outstripping the growth of the relevant 24 INN market by 49 percentage points).
• The evolution index for Other drugs in the Base Portfolio was 129 (outstripping the growth of the relevant 155 INN market by 29 percentage points).
• In 2024, PROMOMED sold through budget sales channels about 320 thousand packages of Rivaroxaban, developed as part of the Company's import substitution activities for vital medicines and intended for the prevention and treatment of thrombosis and other diseases of the cardiovascular system. Revenue from sales of Rivaroxaban amounted to more than one billion rubles, which indicates a high demand for high-quality affordable locally produced drugs.
• 8 innovative drugs from the key portfolio, including drugs for the treatment of endocrinological, oncological, antiviral, neurological, orphan diseases and over-the-counter analgesics, are at the final stage of registration. The launch of these drugs into the market is planned in 2025 in accordance with the initial forecast.
• By the end of 2024, 75 medical studies were conducted, registration certificates for 38 medicines were obtained, including export markets, 20 new patents were registered, and 46 more Russian and international applications for inventions were filed.
• In 2024, the number of proprietary trademarks increased to 550, which is 164 more than in 2023. The growing number of intellectual property objects is associated with the consistent implementation of innovation activities and the protection of the latest developments, and confirms the Company's attention to increasing the value of intangible assets.
• In the reporting period, the Company fully completed scientific research, which resulted in the localization of the synthesis of a number of key pharmaceutical substances, for example, Tirzepatide (treatment of obesity), Dolutegravir (treatment of HIV), Rivaroxaban (prevention and treatment of thrombosis) and Nilotinib (treatment of blood cancer).
• The plant of JSC Biochemik has successfully passed the inspection of Russian and foreign regulators: it has confirmed compliance with the requirements of good manufacturing practices of the EAEU, expanded the EAEU license with a permit for new types of activities (for example, work with blood products) and for the production of a number of new dosage forms (for example, suspensions for intramuscular injection with prolonged release).
• As part of the implementation of the strategy to expand the Company's export potential, the Biochemist JSC Plant has successfully passed an audit by the Ministry of Health of the Republic of Iraq, confirming that the production of a wide range of high-demand oral and injectable dosage forms meets the international requirements of good manufacturing practice. A wide range of PROMOMED drugs is planned for registration and further circulation in Iraq.
• The plant of JSC Biochemist has received a license and a certificate from the EAEU Good Manufacturing Practice (GMP) for the production of veterinary drugs. The development process has been completed and the registration process for a number of veterinary drugs has been launched. The sought-after pet treatment products are planned to be launched on the market in 2025. The target market for animal products exceeds 11.5 billion rubles and is growing at a high double-digit rate.

FINANCIAL PERFORMANCE FOR 2024

• In 2024, the Company's revenue grew by more than 33% compared to 2023, significantly outpacing the market growth rate, and amounted to 21.1 billion rubles. The growth rate of the entire pharmaceutical market in 2024 was 18%[4].
• Adjusted EBITDA margin for 2024 based on management reports will exceed forecast, published during the placement of shares.
• The share of revenue from the sale of innovative products increased to 58%, which is 10 percentage points higher than a year earlier (48% in 2023).
• The volume of export sales increased by 46% compared to 2023.
• The share of Endocrinological and Oncological portfolios in revenue for 2024 was 63% (52% in 2023).
• In the Endocrinology segment, revenue in 2024 increased by 80% compared to 2023 and amounted to 7.9 billion rubles, while the growth of the relevant market in the Endocrinology segment was 77%. The outstripping growth was made possible by the launch and successful sales of new products for the treatment of overweight and obesity – Velgia®, Enligria®, and for the treatment of diabetes mellitus – Quincenta®.
• In the Oncology segment, revenue in 2024 increased by 41% compared to 2023 and amounted to 5.4 billion rubles, while the growth of the relevant market in the Oncology segment over the comparable period was 9%. The main growth driver was the launch of new drugs in hematology and oncourology on the market.

staff

As of December 31, 2024 compared to December 31, 2023:

• The total number of employees increased by 14% to 2,215 people.
• The number of employees in R&D increased by 18% to 444 people.
• The main drivers of headcount growth are R&D divisions, Sales, Marketing, and IT-Digital transformation.

Timofey Solovyov, Chief Financial Officer of PJSC PROMOMED, commented:

"The strategy announced during the initial public offering has fully justified itself. In 2024, we grew at a rate that was many times faster than the growth rate of the pharmaceutical market as a whole and, especially, of generic companies. This growth was made possible primarily by bringing key drugs from our product pipeline to the market. We have huge, fast-growing target market segments ahead of us, and our portfolio is constantly being updated with innovative drugs. Thus, in Q4 2024, we successfully launched the revolutionary weight loss drug Velgia®, which sold almost one billion rubles within a month.

Tight monetary policy and macroeconomic uncertainty have had a restraining effect on all sectors of the economy. We are closely monitoring the situation, relying on our innovation strategy in the development of the Group, successfully managing working capital and expecting that the EBITDA margin by the end of 2024, as predicted, will be more than 35%, and the debt burden will continue to decrease. The audited results for 2024 and a detailed forecast for 2025 will be presented on April 22."

About the Company

PJSC PROMOMED is a leading innovative biopharmaceutical company with the potential for significant growth in promising segments of the pharmaceutical market.

The Company's structure includes its own unique world-class R&D center and a high-tech enterprise, the Biochemist plant. Thanks to this, PROMOMED implements the concept of a full production cycle "from Idea to Molecule, from Molecule to Patient", promptly responds to the current needs of the industry, and also implements the latest technologies to create innovative medicines. The company develops a diversified portfolio of more than 330 medicines in the TOP 10 segments of the pharmaceutical market. The Company's portfolio includes "blockbuster" drugs and innovative biotechnological drugs that have no analogues on the Russian market. Based on its own developments, the Company produces drugs for the treatment of socially significant diseases: oncology, diabetes, obesity, neurology, infectious diseases, rheumatology, etc. Thanks to its own innovative chemical technologies and biotechnologies, as well as modern production facilities, the Company is an active participant in the system of ensuring national drug safety and import independence of the country.

Contacts

For investors	For the media
ir@promomed.pro	pr@promomed.pro

 

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[1] Hereafter: financial indicators according to management reporting data.

[2] INN: international nonproprietary name.

[3] Evolution Index (EI) is an evolution index calculated to assess the progress of a product and/or a company's product portfolio in the market, reflecting the growth rate of a product compared to the growth of its relevant market. Values above 100 indicate by how many percentage points the product or portfolio is growing faster than the market.

[4] Source: IQVIA, secondary sales data in producer prices.