The Analytical Credit Rating Agency (ACRA) the credit rating of Medical Center for Biomaterials PJSC (Gemabank, MOEX: GEMA) at BB+ on the Russian national rating scale with a stable outlook. The company’s credit rating was first published by ACRA on July 20, 2022.
The confirmation of the credit rating is caused by the company’s maintaining a very high commercial viability, strong liquidity and a very good cash flow.
IMCB (International Medical Center for Processing and Cryostorage of Biomaterials) is part of the Institute of Human Stem Cells group of companies (HSCI, MOEX: ISKJ) and, under the Gemabank brand, it has been providing services of individual storage of cord blood stem cells for the treatment of critical diseases since 2003. The company also works in the field of medical genetics, providing genetic testing services based on HSCI’s own developments. Gemabank is actively working to extend its range of products and services by developing drugs for the treatment of blood diseases using stem cells.
As part of its operational risk profile, ACRA notes Gemabank’s leading position in the narrow industry segment of human cell and tissue banking, despite the declining demand in the bioinsurance market due to demographic and economic factors. The agency also takes into account the average corporate governance score and very high geographic diversification.
As of the end of 2022, Gemabank had over 38 thousand samples in storage, so the company’s share in the Russian market was about 40%. IMCB operates in 85 cities of Russia and is currently represented in Kazakhstan and Armenia.
According to the IMCB director, Alexander Viktorovich Prikhodko: “Gemabank celebrates its 20th anniversary this year and is one of the first banks to introduce the concept of bioinsurance. Gemabank has exceeded the global level of demand for cord blood samples for the treatment of serious diseases. In our bank, it is 1 in every 700 samples. This was precisely Gemabank’s objective: to be in demand for medical practice.”
At the end of 2022, Gemabank’s revenue amounted to RUB 255 million. As biomaterial storage contracts are predominantly long-term (for up to 20 years), Company is guaranteed stable revenue from cell storage services.
The company prepares financial statements in accordance with IFRS on a semi-annual basis. Its performance is also consolidated and published as part of HSCI’s financial statements in accordance with IFRS. ACRA views the availability of a board of directors in the Company, the regulation of basic procedures and the publication of its key operational and financial indicators positively.