PROMOMED DM's long-term credit rating has been confirmed at giA-, with a stable outlook

November 06, 2024, Moscow – PJSC PROMOMED (MOEX: PRMD) (formerly "PROMOMED", the "Company", and together with its subsidiaries, the "Group") announces that the rating agency Expert RA has confirmed the credit rating of the subsidiary PROMOMED DM LLC at ruA(-). The rating outlook is stable.

The Agency notes that the domestic pharmaceutical industry belongs to socially significant industries, and the low elasticity of demand for medicines, in particular vital ones, ensures its stable position. The long-term and sustainable development of the industry is facilitated by an increase in the number of clinical trials by Russian manufacturers in order to import substitution and market new medicines.

According to Expert RA, the Group has developed competencies and practical experience in the development of innovative drugs, one of which (Enligria®) entered the Top 10 new brands in the commercial market by value according to the results of the reporting period (according to DSM Group). The Group's advantages also include a diversified customer base and the absence of dependence on hard-to-replace suppliers.

According to the agency's calculations, the company's operating cash flow, combined with the cash balance as of the reporting date and the available limits on credit lines over the next 12 months, are sufficient to meet all planned costs. A qualitative assessment of liquidity is characterized by a low risk of debt refinancing and a comfortable repayment schedule, and the Group's debt portfolio is diversified. The Agency positively evaluates the Group's policy on the allocation of available funds, and also notes that the updated dividend policy of the Group after the IPO includes a condition for determining the amount of dividends depending on the ratio of net debt to EBITDA.

By the end of 2023, the Group's EBITDA margin, as well as a year earlier, exceeded the maximum industry benchmarks and was at the level of more than 40%.

The Agency evaluates the Group's corporate governance at an above-average level and is characterized by the presence of a Board of Directors, including independent directors.

The press release of the rating agency "Expert RA" is published on the website raexpert.ru

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.

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