ACRA Rating Agency has affirmed Artgen Biotech's (MOEX: ABIO) credit rating at BBB– on the national rating scale for the Russian Federation, with a stable outlook. ACRA first assigned Artgen Biotech a credit rating in March 2021.
According to ACRA, Artgen Biotech has maintained a strong weighted-average debt service ratio and reduced its overall debt. However, the expected bond loan repayment in 2026 continues to exert pressure on the company's liquidity.
ACRA believes that Artgen Biotech's project portfolio remains limited to the medical and healthcare sectors. Within this field, however, operating companies provide a moderately diversified set of services, including gene therapy, genetic research and diagnostics, bio insurance, reproductive material preservation and provision for infertility treatments, innovative aesthetic medicine, the development and deployment of new coronavirus and influenza vaccines, etc.
Gemabank (MOEX: GEMA, ACRA rating: BBB–(RU), outlook: Stable), the largest personal cord stem cell bank in Russia remains one of Artgen Biotech's key operating companies. ACRA highlights Gemabank's leading position in the niche segment of cell technologies, its moderate level of corporate governance, and its broad geographic reach. Gemabank's financial profile is characterized by a small business size, high liquidity, strong cash flow, and consistently very high profitability.
Genetiko Center (MOEX: GECO) is a leader in the Russian genetic testing market. According to ACRA, the company offers a moderately diversified range of services, including preimplantation genetic testing, non-invasive prenatal testing, tumor genetic testing for targeted therapy selection, NGS sequencing for diagnostic and research purposes, and other services. The company gained operating profit in 2024 and successfully repaid its bond loan in June of this year.
NextGen and HSCI Pharma, companies engaged in the development, production, and sale of gene therapy drugs, hold significant stakes within Artgen Biotech's investment structure. ACRA notes that both companies have a moderate operational risk profile, low leverage, and moderate liquidity, combined with strong cash flow.
ACRA's press release is available through the link