The outstripping growth of EBITDA by 91% and net profit by 106% is predetermined by a well–chosen strategy - PROMOMED announces the results of the first half of 2025 according to IFRS

August 28, 2025, Moscow – PJSC PROMOMED (MOEX: PRMD) (formerly –PROMOMED", the "Company", and together with its subsidiaries, the "Group") announces the Group's IFRS financial results for the first six months ended June 30, 2025.

In the first half of 2025, the Group demonstrated solid growth in key financial and operational indicators compared to the same period in 2024:

• The growth of the pharmaceutical market in the reporting period, according to IQVIA, was 15%;

• The Group's revenue grew by 82%, which is 5.5 times more than the growth of the pharmaceutical market. Faster growth of EBITDA by 91% and net profit by 106%. The average annual revenue growth rate of the Group from 2019 to 2024 is 33% compared to 13% for the pharmaceutical market as a whole.;

• The strategic directions of the Group – Oncology and Endocrinology – the largest segments of the pharmaceutical market with a total share of 34.3% in the first half of 2025 grew at a faster pace (+20.6%);

• Significant sales growth compared to relevant markets: 

• Endocrinology: +118%, due to increased sales of innovative drugs for the treatment of diabetes and obesity – Quintenta®, Velgia® and Tirzetta®;

• Oncology: +188% due to organic growth in shipments of high-demand drugs, the leader in the group is Cabozantinib, and the launch of a new drug in the Company's Core Portfolio, Apalutamide-Promomed;

• The balanced ratio of Commercial and Budget sales is 49% and 51%, respectively.;

• Debt reduction: LTM Net debt/EBITDA as of June 30, 2025 was 2.0x (decrease of 0.1x compared to December 31, 2024 and 0.5x compared to June 30, 2024); 

• Growth in the number of newly registered medicines (+15) and patents (+12);

• An increase in the share of innovative drugs in revenue to 60% (from 57%) and biotechnological drugs to 53% (from 39%);

• The launch of the first subscription system for course-based drugs in the history of the Russian pharmaceutical industry, which allows you to purchase the Group's drugs at significant discounts and follow the prescribed therapy without interruptions in a comfortable financial regime;

• Confirmation of the forecast for 2025: revenue growth of 75% with an EBITDA margin of 40%. 

KEY OPERATIONAL AND FINANCIAL RESULTS

Alexander Yefremov, CEO of PJSC PROMOMED, commented:

"Innovation is embedded in the DNA of PROMOMED, and the results of the half-year are a visible confirmation of this. We are persistently moving according to the adopted and announced strategy of innovative development.

Our passion for leadership ensures vivid victories in fair and open competition. We create unique drugs and technologies, and put them into production. We are proud of our technological solutions in Amben Bio, in Brainmax, we have launched Tirzetta and Velgia ECO, the only drugs on the market for the treatment of obesity in disposable injectors without phenol and benzyl alcohol, there are no other such products in the markets from Britain to Japan. We are preparing the launch of Amberwin drugs. Pulmo", "Reitbufen", "Migrenium Neo" and other new developments in the second half of this year.

We have developed a new approach in the delicate care of patients to achieve the best therapeutic result – I am talking about the country's first subscription program for course-based drugs, and in the field of investment development, we were the first to issue new structural bonds for the Russian market, the income of which is linked to the price of our shares.

Our mission is to make the lives of patients and doctors better, and we are pleased that our new drugs are a keyThe iPad and the basic portfolio are in high demand, recognizable, and trusted by patients and healthcare professionals."

OPERATIONAL RESULTS

The market of medicines ²

In the first half of 2025, according to IQVIA, the pharmaceutical market grew by +15% compared to the same period last year. From 2019 to 2024, the average annual growth rate of the Russian pharmaceutical market was +13%, while the average annual revenue growth of PROMMED for the specified period was 2.6 times higher (+33%). 

The share of original drugs in the pharmaceutical market in monetary terms remains at a high level — 60%, while foreign companies have sharply reduced the number of clinical trials conducted. Thus, there is a steady demand for modern high-tech solutions in the market, while the supply of foreign innovative medicines is decreasing. In these conditions, a unique opportunity is created for domestic manufacturers with their own R&D platforms and full-cycle production. The Group successfully ensures the development and production of innovative drugs that meet the critically high demand of the healthcare system for modern original solutions.

The Group focuses strategically on Oncology and Endocrinology, the ⁴ largest segments of the pharmaceutical market. These segments together occupied more than 34.3% of the pharmaceutical market in the first half of 2025 and grew faster than the market (+15.8%). At the same time, the market segments relevant to the Group's Onco and Endo portfolio in the first half of 2025 demonstrated growth rates that outstripped the growth of the segments as a whole (+20.6%).

The growth rate of PROMOMED in strategic areas is many times higher than the market dynamics. Particularly high growth rates are observed in the most marginal segments with a high level of demand for innovation and technology. It is in them that the Group's evolution index is significantly higher than 100. In the first half of 2025, the relevant market in Oncology temporarily decreased compared to the same period last year due to the calendarization of public procurement and is expected to return to growth by the end of the full year.

Information about the sales structure

In the first half of 2025, the Group increased the share of priority Endocrinological and Oncological drugs in revenue by 20 percentage points – the share of these drugs reached 74%. The Group's drugs sold through Commercial and Budget Sales channels accounted for 49% and 51% of revenue in the first half of 2025, respectively. This distribution is optimally balanced.

In the first half of 2025, the share of innovative drugs in the Group's revenue increased to 60%, and biotechnological products to 53%, compared with 57% and 39% in the first half of 2024. This progress is a witnessThis indicates the implementation of the stated strategy to bring high-tech modern drugs to the market.

The development of sales channels is an integral part of the PROMOTIONAL strategy. In April 2025, the Group initiated the first subscription program for course-based drugs in the history of the Russian pharmaceutical industry. The initiative allows patients to purchase the Group's drugs with significant discounts in a comfortable financial regime and adhere to the prescribed therapy without interruptions. 

The Group is also actively expanding its partnership programs with pharmacy chains to scale Subscriptions and reach new user categories. Shareholders registered in the PROMMED register as of April 22, 2025, can receive a Subscription on preferential terms. Thus, the Group fulfills the promises made during the IPO and provides shareholders with easy access to the PROMOMED product ecosystem.

Operational results

The Group continued to implement its strategy for developing Key Innovation and Core Portfolios, and increased the number of registered medicines and intellectual property objects. Compared to the same period last year, the number of medical studies conducted has increased significantly, which creates a scientific basis for further expansion of the product line and is a driver of long-term sustainable business growth.

In addition, the Group is systematically improving the quality of its research, which accelerates the creation and launch of new drugs on the market. In the first half of 2025, an agreement was signed between PROMMED, Sber and the AI Institute to expand the use of artificial intelligence in the research process. As part of the partnership, a joint specialized platform is being created for the integrated application of AI solutions in the pharmaceutical industry. Based on the platform, tools for modeling new molecules, bioinformatic analysis, processing biomedical and market data, as well as decision support services will be available in a single software package. 

Progress in the development of the drug portfolio

Notable progress has been made across the entire pipeline of Key Innovative Drugs announced during the IPO. By 2030, 31 drugs are planned to be withdrawn, of which Velgia® and Tirzetta® have already been released into civilian circulation ahead of schedule. In the 2nd quarter of 2025, registration certificates for the innovative analgesics Reitbufen and Migrenium® were received. Neo, as well as for two veterinary drugs. The target markets for new drugs are estimated at several billion rubles.

At the same time, the Group continues to actively develop its Core Portfolio as a reliable foundation for sustainable growth. In the first half of 2025, the Group launched 2 new oncological drugs of the Basic Portfolio — Apalutamide-Promomed and Dasatinib®, with total revenue of more than 1.8 billion rubles in the reporting period. 

In the first half of 2025, the Group launched:

• The latest drug Tirzetta® (INN tirzepatide), designed for the treatment of obesity and type II diabetes mellitus. Tirzetta® combines clinical and technological innovation. The effect on two types of GIP and GLP-1 receptors at once provides a more pronounced effect of reducing body weight, forming a beautiful silhouette and controlling glucose levels compared to traditional methods of therapy. The unique composition, without phenol and without benzyl alcohol, makes Tirzetta the only preparation outside the USA.a drug with INN tirzepatide, which does not contain any preservatives, which is especially important for increasing safety during long-term, course use, and especially in patients with liver and kidney diseases.

• The drug Velgia® Ivf (INN semaglutide) for the treatment of overweight and obesity is the only semaglutide in the Russian market without phenol, without preservatives, which makes it possible to use it in patients with hypersensitivity and various liver and kidney diseases. The Ministry of Health estimates that about 44 million people in Russia are obese. At the same time, only 1 million people are covered by modern therapy.

• The drug of the Basic portfolio Apalutamide-Promomed (INN apalutamide) for the treatment of two types of prostate cancer is the first domestic second–generation androgen receptor inhibitor. In 2023, prostate cancer in Russia became the 1st most common cancer in men and the 3rd leading cause of cancer death. The cost of the drug is 40% lower compared to foreign analogues. 

International markets

PROMOMED is actively developing cooperation with foreign companies. In the reporting period, the Group, together with Ogarev Mordovian State University and the Riyadh Group of Companies (Kingdom of Bahrain), signed a trilateral memorandum of understanding. The agreement provides for the creation of a joint R&D hub, training of personnel for the pharmaceutical industry in the region and the launch of local production of innovative drugs based on Russian technologies.

A significant step in expanding its international presence was the successful passage of the international GMP (Good Manufacturing Practice) inspection by the regulators of Iraq by the plant of JSC Biochemik. Foreign experts highly appreciated the modern production lines and the work of quality control laboratories at the enterprise in Saransk. This opens up prospects for the Company to enter the pharmaceutical market in Iraq, where a wide range of the Group's drugs is planned for registration and subsequent circulation.

Kira Zaslavskaya, Director of New Products, noted:

"PROMOMED's leadership position in research and development is based on the synergy of science, advanced technological and digital infrastructure, and team expertise. The quality of our work is recognized by both the domestic and international pharmaceutical community. We have created a full—cycle ecosystem, from forming the structure of a molecule and synthesizing our own substances, to conducting clinical trials and bringing ready-made drugs to the market. This approach allows us to create a wide portfolio of drugs and accelerate the movement of each promising molecule on the way from the laboratory to the patient. Since the IPO, each drug from the Key Pipeline has advanced to a new stage of development or registration, which is fully consistent with our stated plans.

In the first half of the year, Tirzetta®, Apalutamide Promomed, and the Company's first drug for the treatment of childhood orphan disease were launched ahead of schedule, and registration certificates for high-speed and highly active painkillers, Velgia, were obtained. Ivf, as well as in-demand veterinary drugs. In parallel, the registration process for a number of new medicines from the Basic Portfolio has been completed. This is how we ensure diversification, additional sustainability, and faster business growth.

In order to further improve the efficiency of development, we are strengthening the integration of artificial intelligence methods into all drug creation processes. Together with leading experts in this field, we are creating new standards for the digitalization of scientific activity and thereby expanding patients' access to the most modern methods of therapy."

FINANCIAL RESULTS ⁹

Revenue In the first half of 2025, the Group's share increased by 82% to RUB 13.0 billion. compared to 7.1 billion rubles in the first half of 2024. The Company's revenue growth rate was 5.5 times faster than the pharmaceutical market growth rate, which was about 14.9%^.10 Revenue growth was driven by increased sales of drugs in the Core Portfolio (+25%), shipments in the Core Portfolio (+27%), and launches of new drugs in the Core Portfolio (+31%). The main growth factors in consolidated revenue were the launch of new medicines in Endocrinology and Oncology, strategic therapeutic areas, as well as a significant increase in sales of the tissue repair stimulator Ambene®Bio (16 times) and the anticoagulant Rivaroxaban (3 times).

• In Endocrinology, revenue growth in the first half of 2025 was 118% compared to the first half of 2024, primarily due to successful sales of new products Velgia® and Tirzetta® and sales growth of the drug Quincenta®.

• In Oncology, revenue growth in the first half of 2025 was 188% compared to the first half of 2024. The main growth driver was the introduction of new drugs from the Basic Portfolio to the market.

• In the Other drugs segment, revenue growth in the first half of 2025 was 5% compared to the first half of 2024. The dynamics is also due to the seasonality of sales of a number of antiviral drugs and antibiotics, which peak sales in the 2nd half of the year. 

Gross profit In the first half of 2025, the Group grew by 92% to RUB 8.0 billion. compared to 4.2 billion rubles in the first half of 2024. The dynamics is due to the successful preservation of the average cost per unit of production, as well as a change in the set of drugs in the current sales basket compared to the 1st half of 2024. 

• Gross profit margin in the first half of 2025 increased to 61% compared to 58% in the first half of 2024.

EBITDA in the first half of 2025 increased by 91% to 4.4 billion rubles. compared to 2.3 billion rubles in the first half of 2024.

• The EBITDA margin in the first half of 2025 increased to 34% compared to 32% in the first half of 2024. Profitability increased due to increased sales of innovative drugs in the most promising therapeutic areas.

Financial expenses in the first half of 2025 increased by 114% to 2.2 billion rubles. compared to 1.0 billion rubles in the first half of 2024. The increase in interest expenses is due to an increase in the loan portfolio related to ongoing investments in R&D, as well as an increase in the key interest rate of the Bank of Russia.

Net profit in the first half of 2025 amounted to 1.4 billion rubles. compared to 5 million rubles in the first half of 2024. Net profit, adjusted for one-time expenses related to the organization of the Company's IPO, as well as the created income tax reserve for previously recognized expenses, amounted to RUB 690 million in the first half of 2024. The Group has reflected the created reserve in its financial statements, however, it estimates the likelihood of additional tax collection as unlikely. 

Key liquidity indicators

LTM net debt/EBITDA decreased by 0.1x to 2.0x as of June 30, 2025, compared to 2.1x as of December 31, 2024 (compared to June 30, 2024, a decrease of 0.5x from 2.5x).

In June 2025, the Expert RA rating agency confirmed the credit rating of PROMOMED DM LLC, the Group's bond issuer, at the level of ruA-, with a stable outlook. 

Key cash flow indicators

Cash flow from operating activities in the first half of 2025 amounted to (743) million rubles. compared to (1,472) million rubles in the first half of 2024, demonstrating a significant improvement. As of June 30, 2025, net working capital increased by 19% and reached RUB 21.7 billion. compared to 18.3 billion rubles at the end of 2024.

The increase in net working capital reflects the active growth phase of the Group and the expansion of inventories associated with the introduction of new drugs to the market. PROMOMED expects to optimize its net working capital in future periods, including through increased sales of innovative drugs from its Core and Core Portfolios. Capital turnover over the past 12 months has remained at the same level: 485 days as of June 30, 2025 versus 510 days as of June 30, 2024.

Cash flow from investing activities in the first half of 2025 amounted to 1.6 billion rubles. compared to 1.4 billion rubles in the first half of 2024.

• R&D expenses in the first half of 2025 increased by 26% to 763 million rubles. compared to 604 million rubles in the first half of 2024. This dynamic is consistent with the Group's strategy of focusing on the development and commercialization of innovative drugs and is fully consistent with previously announced plans to launch new products. 

• Capital expenditures in the first half of 2025 decreased by 14% to RUB 629 million. compared to RUB 735 million in the first half of 2024 due to the planned completion of the production capacity development cycle, as well as changes in the capital investment schedule.

FORECAST FOR 2025

Based on the strong results for the first half of 2025, PROMOMED confirms its financial forecast for 2025: revenue growth of 75% with an EBITDA margin of 40%.

SUSTAINABLE DEVELOPMENT

Corporate governance:

Since the IPO, the composition of the Board of Directors and its structure have not changed – PROMMED's Board of Directors was re-elected in June 2025 at the Annual General Meeting of Shareholders and consists of 9 people, including 4 independent directors. The Board of Directors consists of an Audit Committee, a Nomination and Remuneration Committee, and a Strategy and Sustainable Development Committee. 

In order to increase the Group's shareholder value, PROMOMED launched a long-term management motivation program with buy-back tools in the reporting period.

In the first half of 2025, the Information Policy of PROMOMED was approved and disclosed on the official website.

The Group developed and approved a Shareholder Value Growth Strategy and was among the first 6 companies included in the Value Creation Index (ticker: MVBI), which was formed as part of the Program of the Bank of Russia and the Moscow Exchange.

Staff:

The total number of employees of the Group as of June 30, 2025 increased by 16% to 2,491 people compared to 2,151 people as of June 30, 2024. The growth in numbers confirms the Group's Development Strategy and is driven by the planned development of R&D, IT-Digital transformation, Marketing and Sales areas.

EVENTS AFTER THE REPORTING DATE

In July 2025, the Group placed RUB 5 billion of bonds. with a circulation period of 2 years. The attraction of financing is aimed at refinancing debt and accelerating the development of innovative drugs.

The Group raised 3.3 billion rubles through 2 issues of structural bonds linked to the value of PROMOMED shares. These instruments are aimed at reducing the cost of financing, increasing the liquidity of the secondary stock market and do not involve additional issuance of shares and coupon payments. 

The webinar dedicated to the operational and financial results of PJSC PROMOMED for the first 6 months of 2025 will begin at 3 p.m. on September 02, 2025. 

To participate in the webinar, you must register using the link: registration

About the Company

PJSC PROMOMED is a leading innovative biopharmaceutical company with the potential for significant growth in promising segments of the pharmaceutical market. In 2025, PROMOMED celebrates the 20th anniversary of the Company's founding.

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 relevant the needs of the industry, as well as implements the latest technologies to create innovative medicines. The company develops a diversified portfolio of more than 350 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

Statement of limitation of liability

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,

• an offer to purchase medicines,

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• 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 and/or decisions on the use of any medicines.

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 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 only source of information when making an investment decision. 

Before 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 information disclosed on the Company's web page.: 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 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). An indication of goals, potential, growth opportunities or other indicators is not a guarantee of the realization of these goals, potential, opportunities.

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,They do not confirm the accuracy, completeness or unambiguous nature of the information and information contained in this message or related materials, and do not assume any obligations or obligations to update them.

1]  The dynamics of net profit in the first half of 2024 was significantly affected by one-time expenses related to the IPO and the creation of an income tax reserve for previously recognized expenses. The Group has reflected the created reserve in its financial statements, however, it estimates the likelihood of additional tax collection as unlikely.

[2] Source of IQVIA

[3] Source of IQVIA

[4]  Anatomical, therapeutic and chemical classification L (Antitumor and immunomodulatory drugs) and A (Digestive tract and metabolism).

[5]  Source: IQVIA, Secondary sales data in producer prices

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

[7] 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.

%D1%8F%20%D0%BE%D1%82%D1%87%D0%B5%D1%82%D0%BD%D0%BE%D1%81%D1%82%D1%8C%20%D0%BF%D0%BE%20%D0%9C%D0%A1%D0%A4%D0%9E%20%D0%B7%D0%B0%201%D0%BF%D0%B3%202024%20%D0%9F%D0%A0%D0%9E%D0%9C%D0%9E%D0%9C%D0%95%D0%94.docx#_ftnref1">[8] Vital and essential medicines

[9] IFRS data, management reporting

[10] Source IQVIA

[11] Corresponds to the line "Payments in connection with the acquisition and creation of intangible assets" Cash Flow statement of IFRS reporting, R&D.  

[12] Corresponds to the line "Payments in connection with the acquisition, creation, modernization, reconstruction and preparation for the use of the operating system" Cash Flow statement of IFRS reporting, CapEx.