The innovative biopharmaceutical company PROMOMED announces its intention to hold an IPO on the Moscow Stock Exchange

The innovative biopharmaceutical company PROMOMED announces its intention to hold an IPO on the Moscow Stock Exchange
June 28, 2024, Moscow – PJSC PROMOMED (formerly "PROMOMED", the "Company", the "Issuer" and, together with its subsidiaries, the "Group") announces its intention to conduct an initial public offering (hereinafter referred to as the "IPO" or "Offering") of ordinary shares (hereinafter referred to as "Shares") with a listing on the Moscow Stock Exchange.

• PROMOMED is a leading innovative biopharmaceutical company with impressive growth potential in the most promising and high-margin market segments, based on its own world-class research center, which allows it to develop and market innovative high-tech drugs, and its own large-scale full-cycle production facility.


• PROMOMED holds leading market positions in Endocrinology (diabetes and obesity therapy) and in relevant segments of Oncology, and has a wide portfolio of innovative drugs in the most high-tech sectors of biopharmaceuticals.


• PROMOMED's business model, "from idea to molecule, from molecule to patient," focuses on full-cycle R&D and manufacturing, which makes it possible to respond effectively and promptly to the current needs of the industry.


• The company plans to use the funds raised during the IPO to further develop its portfolio of innovative drugs in target categories, strengthen leadership in the production of technologically advanced and complex dosage forms, and develop biotechnological drugs and technologies for personalized medical solutions, which will ensure further growth and diversification of the portfolio, which currently includes more than 330 medicines in the most important therapeutic areas.

• As part of the IPO, investors may be offered Shares issued by the Company as part of an additional issue.


• The main objectives of the IPO


• Accelerate portfolio development in target categories through the development, registration and market launch of new innovative drugs, including biotech and drugs for personalized medical solutions.


• Ensuring the liquidity of Shares and expanding the shareholder base.


• Long-term motivation of key employees to increase the value of the organization.


• Reducing the debt burden and optimizing the capital structure.


• Improving the business reputation and attractiveness of the Company's brand.


• Enhancing the attractiveness of the Company to customers, employees and partners.


• The Company plans to list its Shares and expects trading to begin on the Moscow Stock Exchange in July 2024.


• Following the results of the IPO, the shareholder who founded the business will retain the predominant share in the share capital.


• The Company expects the Shares to be included in the second quotation list of the Moscow Stock Exchange.


• The offer will be available to Russian qualified and unskilled individual investors, as well as to Russian institutional investors. It will be possible to apply for the purchase of Shares through leading Russian brokers.

The issue documents will be available on the Company's official website in the relevant section, as well as in the regulatory news feed.
(https://www.e-disclosure.ru/portal/company.aspx?id=38533

Commitments and stabilization mechanisms In the event of an IPO, the Company and the current shareholder will assume obligations limiting the disposal of Shares within 180 days after the completion of the IPO. A stabilization mechanism will also be structured for a period of 30 days after the start of trading.

• An innovative biopharmaceutical company with leading positions in Endocrinology, Oncology and other fields


• The company has occupied more than 50% of the obesity drugs market for more than 10 years and continues to increase its share in one of the key segments of the target market, including through constant updating of the portfolio of innovative drugs.


• In 2023, PROMOMED developed and marketed a whole line of drugs for the treatment of diabetes and obesity, and took over a share of drugs that left Russia from the Danish company Novo Nordisk.


• The Company's top 5 cancer drugs occupy significant positions in relevant markets with shares ranging from 7% to 41%.


• The share of innovative drugs in revenue is 56%.


• A diversified and significant portfolio of innovative developments in the most important therapeutic areas


• PROMOMED's diversified portfolio includes more than 330 drugs.


• The company develops a portfolio of innovative biopharmaceuticals in Endocrinology, Oncology, Neurology, Antiviral segment, and Immunology. More than 150 drugs are at the stages of research and registration.
• The company is also showing double-digit sales growth in other key therapeutic areas.



• An effective business model based on strong R&D and full-cycle production


• The effectiveness of the business model is confirmed by many years of successful experience in implementing projects that allow for multiple increases in operational performance while maintaining a high level of profitability.


• Over the past 3 years, the Company has managed to obtain 124 new registration certificates.


• The company has carried out a large-scale modernization of the production complex and increased the number of production lines for finished medicines and active pharmaceutical substances (APIs).


• A unique combination of biotechnological and chemical technologies in all sought-after areas of biopharmaceuticals


• The company has developed a wide range of technological platforms that allow to unify and optimize the process of drug development and withdrawal in the most technologically complex and demanded areas of the pharmaceutical market. PROMOMED's Key biotechnological platforms:


• The RNA platform is a biotechnological drug based on RNA.


• The ADC platform is a "compound" of a monoclonal antibody with a chemical agent through a specific linker.


• RNA virus therapy is the targeted treatment of RNA viruses (COVID-19 / influenza / the main types of acute respiratory viral infections, etc.).


• Peptide technologies – Synthesis of substances based on peptide molecules.


• Biocatalytic synthesis – Optimization of synthesis and improvement of API purity.


• A modern and efficient world-class research center that allows you to go from searching for a molecule to transfer to production and registration


• Over the past 3 years, PROMOMED has invested about 4.5 billion rubles in R&D, and historically the Company has invested about 10% of its revenue in development.


• The active use of modern technological platforms, as well as artificial intelligence, allows PROMOMED to reduce the process of bringing innovative drugs to the market and effectively manage their cost.


• The company ranks first in the Russian pharmaceutical market in terms of the number of medical studies in 2022-2023.


• A proven model of outstripping growth and consistently high profitability


• A proven model of outstripping growth and consistently high profitability


• PROMOMED has demonstrated steady double-digit growth in its core portfolio since the end of the COVID-19 wave. The average annual revenue growth rate for the period from 2021 to 2023 for this portfolio exceeded 58%.


• The Company's EBITDA margin has been about 40% over the past two years.


• A highly motivated team with unique expertise, focused on results


• PROMOMED's top management consists of professionals with significant experience in the largest Russian and international pharmaceutical companies, such as Novartis, Sanofi, AbbVie, GSK, MSD, Roche, AstraZeneca, etc.

• Revenue from the core portfolio (excluding sales of drugs for the treatment of coronavirus infection COVID-19) amounted to 14.2 billion rubles in 2023, which is twice as much as the same indicator in 2022. The main factors of revenue growth were the expansion of the Company's product portfolio and the growth in sales of medicines in strategic therapeutic areas (Endocrinology and Oncology). The total revenue by the end of 2023 amounted to 15.8 billion rubles.regions


• Gross profit for the Company's core portfolio (excluding sales of drugs for the treatment of coronavirus infection ("COVID-19") in 2023 increased by 94% YoY to 9.2 billion rubles. The total gross profit in 2023 amounted to 10.0 billion rubles.


• The Company's EBITDA increased to 6.3 billion rubles in 2023. The company demonstrates a high level of marginality (40%) due to the launch of innovative drugs aimed at combating socially significant diseases and a diversified product portfolio in the most sought-after therapeutic areas.


• Net profit in 2023 amounted to 3.0 billion rubles. Last year's net profit was significantly affected by the windfall tax payment of income tax for previous periods, as well as large-scale investments in new intellectual developments in 2021-2022.

• Expanding the horizons of therapy through innovative drugs


• The share in the relevant market of innovative drugs is more than 35% over a 10-year horizon.


• Focus on the production of innovative biotechnological drugs.


• Creating affordable high-tech therapies for the healthcare system.


• Solving the problems of chronic diseases.


• Changing the prognosis of previously incurable diseases.


• Outpacing the market growth rate of the underlying portfolio


• Deepening penetration in socially significant therapeutic areas.


• Replacement of outgoing foreign manufacturers with self-developed drugs.


• Ensuring National drug safety. Synthesis of proprietary APIs.


• Maintaining high standards of operational efficiency


• EBITDA margin growth to 55% over a 10-year horizon.


• Scaling and adapting the operating model while expanding production.


• Accelerated capacity development in the field of biotechnology and R&D.


• Deep digitalization of internal processes and the use of AI.


• Well-established SnOP process and processes in Project Management.

Contacts

For investors
ir@promomed.pro

For the media
pr@promomed.pro

This message and the information contained therein are not:

• an offer to purchase any securities,


• an invitation to make offers for the purchase of any securities,


• as part of such offers or invitations,


• securities advertising in the Russian Federation or other jurisdictions,


• by encouraging or recommending transactions,


• it is also not subject to interpretation as such.

Neither this communication nor any part of it is the basis for concluding any transaction or incurring any obligation, they cannot be used in connection with any transactions or obligations or serve as an incentive to conclude any transactions or assume any obligations. Neither this announcement nor any part of it should serve as a basis for making any investment decisions. The publication of this communication does not imply investment consulting (in the meaning defined in the legislation of the Russian Federation (including Federal Law No. 39-FZ of April 22, 1996 "On the Securities Market"). The information provided in this message is not an individual investment recommendation, and the financial instruments or transactions mentioned in it may not meet your investment profile and investment goals (expectations). It is your task to determine whether a financial instrument or operation matches your interests, investment goals, investment horizon, and acceptable risk level. PJSC PROMOMED (hereinafter referred to as the Company) is not responsible for possible losses in the event of transactions or investments in financial instruments mentioned in this information, and does not recommend using this information as the sole source of information when making an investment decision. See you laterWhen making an investment decision on making or not making transactions with the Company's shares, it is necessary, among other things, to familiarize yourself with the prospectus of securities – ordinary shares of the Company and other information disclosed on the Company's website. https://e-disclosure.ru/portal/company.aspx?id=38533 . The information contained in this announcement may include estimates and other forward–looking statements regarding the intentions, plans, future events, financial, operational or other activities of the Company and a group of persons controlled by the Company (hereinafter referred to as the Group). Actual events, calculations and results of their activities may differ materially from those contained or anticipated in the forward-looking statements, words and expressions provided in this communication or related materials due to the influence of various external and internal factors (general economic conditions; risks associated with the specifics of the Company's activities, including those that cannot be controlled by the Company; changes in market conditions in the industry in which the Company and the Group operate; geopolitical and other factors and risks). The methodology for determining and calculating the operational and financial indicators of a Company may differ from the methodology used by other individuals, companies or organizations. The Company or persons belonging to the Group, their directors, participants (shareholders), employees, representatives do not provide any guarantees or assurances confirming the accuracy, completeness or unambiguous nature of the information and information contained in this communication or related materials, and do not assume any obligations or obligations to updating them.