PROMOMED DM Holding Company has been awarded a long-term ruBBB+ credit rating.

On November 27, 2020, the Expert RA rating agency assigned a long-term ruBBB+ credit rating to PROMOMED DM LLC, a non-financial company. This is the highest rating in its category, and its assignment was made possible by PROMOMED Group's balanced financial policy and comfortable debt burden. The rating outlook is "stable".

To assign a credit rating, the Agency used the consolidated financial statements of PROMOMED DM according to IFRS standards. Over the past few years, the company's audit has been conducted by Deloitte, one of the four largest global companies providing audit and consulting services. As noted in the release of Expert RA, the company is one of the largest pharmaceutical manufacturers, as well as a leader in the segment of endocrinology for the treatment of obesity and eating behavior management, treatment of coronavirus infection, and is one of the TOP 5 largest manufacturers of antibiotics in Russia.

The Agency's experts emphasize that PROMOMED DM continues to increase production volumes and expand the scale of its business. The main development focus will be on increasing the diversification of the product portfolio. The expansion of the range of antibacterial and antiviral drugs, including COVID-19, is a priority. The company also plans to create new products in the oncology and neurology segments.

"The large investment program includes the development and production of active pharmaceutical substances and ready-made dosage forms, for the implementation of which, during the active investment phase, the company plans to allocate about 7 billion rubles by 2023. The investment program also includes the construction of new laboratories, workshops for the production of oncological drugs, and the expansion of tablet production. New therapeutic groups and more than 100 new molecules will appear in the product portfolio. Registration of our own active pharmaceutical substances for the production of our finished medicines is already underway," the press release says. "The company is in an active investment phase, to finance which, among other things, it plans to place a debut bond issue in the amount of 1 billion rubles," the agency's analysts explain.

Earlier, on October 13, 2020, the Moscow Exchange registered a PROMOMED DM 001P series bond program with a volume of up to 1.5 billion rubles inclusive or the equivalent of this amount in foreign currency. The program has been assigned the registration number 4-00560-R-001P-02E. The maximum maturity of the bonds placed under the perpetual program will be 10 years.

PROMOMED DM LLC is a 100% subsidiary of Promomed Holdings (Cyprus) Limited, the parent company of the PROMOMED Group business. The Group operates in the pharmaceutical market of the Russian Federation for the production and wholesale of pharmaceutical products. PROMOMED DM LLC is a management company for the group's structures and a trading house for the wholesale of manufactured products. PROMOMED DM is part of the consolidation perimeter of the PROMOMED Group, which accounts for more than 30% of its assets and cash flow in consolidated financial statements. As of 31.12.2019, according to the consolidated financial statements according to IFRS standards, assets amounted to 6.1 billion rubles, capital – 1.9 billion rubles. Revenue in 2019 amounted to 5.2 billion rubles, net profit – 875 million rubles.