Artgen Biotech operating results for 2024 according to the IFRS

Artgen Biotech (MOEX: ABIO), a biotechnology company with a portfolio of innovative developments for the diagnostics, treatment and prevention of socially significant diseases, published their operating results for 2024 prepared in accordance with the International Financial Reporting Standards (IFRS).

Artgen Biotech's consolidated revenue for 2024 increased by 11% compared to 2023 and amounted to 1,521M rubles. The revenue growth was driven by a diversified portfolio of developments that the company is introducing into healthcare practice. In particular, sales of Gemabank’s biomaterial storage services increased by 22%, and the revenue from sales of genetic testing services increased by 24%.

The main events related to research and development at Artgen Biotech:

• Artgen Biotech's Board of directors approved an updated development strategy and included objectives for financing new early developments to create a portfolio of 30 candidate drugs for the treatment of genetic, age-related, infectious and oncological diseases for 2024–2026.
• The MoH of Russia authorized clinical trials of a combination vaccine for the prevention of influenza and coronavirus infection.
• RBT conducted preclinical trials of the effect of Betusphere, a new immunomodulating drug, on the immune system at systemic intramuscular administration.
• Histograft is conducting clinical trials of gene-activated osteoplastic material for the treatment of patients with degenerative-dystrophic diseases of the spine.
• Histograft patented in the USA the composition and technology of manufacture of Histograft gene-activated material for bone grafting.
• Nextgen began clinical trials of Neovasculgen, a gene therapy drug for the treatment of interstitial cystitis.
• Nextgen began preclinical studies of Neovasculgen, a gene therapy drug for the treatment of androgenetic alopecia.
• The MoH of Russia authorized Nextgen's phase III clinical trials of Neovasculgen gene therapy drug for the treatment of diabetic foot disease.
• Genotarget completed preclinical trials of GTDF102, a new gene therapy drug for the treatment of muscular dystrophy — dysferlinopathy.
• Genetico Center (CGRM, MOEX: GECO) received a patent for Onconetix panel for genetic testing of tumors and selection of target therapy of oncological diseases.
• Gemabank's (IMCB, MOEX: GEMA) cryostorage has been expanded by 25 thousand additional pieces.

The main events related to Artgen Biotech's financial and economic operations:

• ACRA increased the company's credit rating to ВВВ-(RU).
• Based on the results of 2023, the company paid dividends in the amount of 1 ruble 20 kopecks per one ordinary share.
• Artgen Biotech signed an investment agreement with Histograft, whereunder they will invest 40M rubles in the development of 5 new medical devices for tissue engineering.
• Artgen Biotech provided a 20M ruble convertible loan to the developer of innovative drugs and vaccines — Adena, a biotech startup.
• Artgen Biotech invests 80M rubles in the development of the RBT company platform production component.
• Betuvax raised about 100M rubles of venture investment during a private placement.
• ACRA increased Gemabank's credit rating to ВВВ-(RU).
• Based on the results of 2023, Gemabank paid dividends in the amount of 2 rubles 20 kopecks per one ordinary share.
• Gemabank's net profit increased by 20% in 2024.
• The Moscow Exchange has included shares of Genetico Center in a new index — the Moscow Exchange IPO Index (MIPO).
• Genetico shareholders have decided to increase the company's authorized capital by 70 thousand rubles. It will be made by means of a closed subscription of 7 mio. additional shares, which will be bought out by companies of Artgen Biotech group.
• Genetico increased their revenue by 23% in 2024.

Review of Artgen Biotech consolidated operating results for 2024 according to the IFRS

In 2024, Artgen Biotech group (hereinafter — the Group) demonstrated the following consolidated financial results:

¹EBITDA adjusted is profit before interest on loans and borrowings, income tax and depreciation, excluding interest received and expenses related to the conversion of a loan into shares of a subsidiary. This indicator reflects the cash flow from the Company's operating activities, which remains at the disposal of creditors, investors and founders.

² EBITDA R&D is profit before interest on loans and borrowings, income tax and depreciation, excluding interest received and expenses on scientific research. This indicator reflects the cash flow from the Company's operating activities, which remains at the disposal of creditors, investors and founders before investment to scientific research.

Consolidated revenue and income of the main companies of Artgen Biotech group

The Group's consolidated revenue for 12 months of 2024 was 1,521,488 thousand rubles, which is 11.2% higher than in 2023. Reduction of revenue from sales of Neovasculgen was caused by lower reimbursement by the FCMIF for a number of genetically engineered drugs used in the hospital segment, including Neovasculgen, a gene therapy drug. However, Neovasculgen has been long trusted by the physicians and has become part of routine medical practice, so sales started to recover after the decline.

Operating expense, operating profit / (loss), EBITDA, EBITDA R&D

Consolidated operating expense in 2024 increased by 11.7% against the previous year.

The Group’s operating profit was 300.8M rubles, with an operating margin of 19.8%. EBIDTA increased by 18.7% against 2023. EBITDA R&D providing for a more objective understanding of the Group's operating profitability and marginality increased to 365.4M rubles by the end of 2024, which is 11.1% higher than in 2023. This indicator excludes expense on scientific research and development (10,267 thousand rubles), which, although reflected as per the accounting standards in the Profit and Loss Statement, actually represent investments in the development and creation of new drugs and medical devices.

Other profit and loss, profit / (loss) before tax

In 2024, The company demonstrated other losses in the amount of 83,412 thousand rubles (the amount resulting from participation in associates, net interest, other net non-operating expense and net exchange rate differences), which is 30.1% higher than in 2023. As a result, the Company's profit before tax was 217.4M rubles (+2.9%).

Profit / (loss) for the reporting period (net profit / (loss))

The Company’s consolidated net profit was 241,160 thousand rubles (+23.9%).

Consolidation

The consolidated financial statements for 12 months of 2024 include the results of Artgen Biotech PJSC and their subsidiaries: IMCB PJSC, CGRM GENETICO PJSC, Reprolab LLC, NextGen JSC, HSCI PHARMA LLC, Vitacel LLC, Skincel LLC, HSCI Ventures LLC, Betuvax JSC, Histograft JSC, Medtechpark LLC, HSCI Consulting LLC as well as associated companies BioTechnology Developments JSC, Genotarget LLC and New Medical Technology Institute JSC.

ATTACHED:

Consolidated statement of profit or loss and other consolidated income for 2024 and 2023 (in thousands of rubles — abbreviated).
Consolidated statement of financial position as of January 31, 2024 and January 31, 2023 (in thousands of rubles — abbreviated).
The consolidated financial statements of Artgen Biotech PJSC and its subsidiaries as per the IFRS can be found on the Company's corporate website in the “For Investors” section (Financial statements / IFRS reports): https://artgen.ru/investors/raskrytie-informaczii/msfo/