Artgen Biotech’s IFRS Results for 6 Months of 2025

Artgen Biotech (MOEX: ABIO), a biotechnology company with a portfolio of innovative drugs and therapies for the effective treatment of human diseases, has published its financial results for the six months of 2025 prepared under the International Financial Reporting Standards (IFRS).

Artgen Biotech's consolidated revenue for the six months of 2025 increased by 13 % compared to the same period in 2024, reaching RUB 839 million. This growth was driven by the company's diversified portfolio of developments implemented in healthcare. Specifically, revenue from genetic research services increased by 57 %, sales of reproductive material banking services grew by 26 %, and sales of Gemabank biomaterial storage services rose by 11 %.

Artgen Biotech's net profit for the first half of 2025 increased by 28 % compared to the same period in 2024, reaching RUB 132 million.

Key Artgen Biotech R&D Developments:

• Artgen Biotech and the Skolkovo Foundation (Foundation for the Development of the Center for the Development and Commercialization of New Technologies) signed a cooperation agreement to foster technology leadership.
• Artgen Biotech established Artgen Seed Fund, a venture seed fund investing in healthcare startups.
• Histograft, a member of Artgen Biotech Group, continues clinical trials of a gene-activated osteoplastic material for the treatment of patients with degenerative dystrophic spinal diseases, with more than 200 patients already enrolled.
• Nextgen, which is also part of Artgen Biotech Group, has begun preclinical trials of the gene therapy drug Neovasculgen for the treatment of androgenetic alopecia.
• Nextgen has received approval from the Ministry of Health of the Russian Federation to conduct Phase III clinical trials of Neovasculgen for the treatment of diabetic foot syndrome (DFS).
• Vascular surgeons at National Medical Research Center for High Medical Technologies A.A. Vishnevsky Central Military Clinical Hospital, a Federal State Budgetary Institution of the Russian Ministry of Defense, for the first time used the Neovasculgen gene therapy drug to treat patients with injuries to major vessels of the extremities.
• Genetico, a member of Artgen Biotech Group, received a patent for the Onconetix panel for genetic tumor research and targeted cancer therapy selection.
• Genetico invested in the biotech startup Retinostar, which is developing advanced gene therapy drugs for the treatment of genetic and age-related eye diseases.
• Biotechnology Developments (RBT) and the Almazov Center have signed a cooperation agreement to conduct research and development aimed at creating and implementing innovative medical technologies and products for practical healthcare.

Key Highlights Related to Artgen Biotech's Financial and Economic Activities

• Artgen Biotech shares became available for trading on weekends on the Moscow Exchange.
• Artgen Biotech decided not to increase its authorized capital through a public offering.
• Cifra Broker published an analytical report on Artgen Biotech's 2024 results, setting a target price of RUB 101 per share.
• ACRA affirmed Artgen Biotech's credit rating at BBB- (RU), with a stable outlook.
• ACRA also affirmed Gemabank's credit rating at BBB- (RU), with a stable outlook.
• Gemabank increased prices for biomaterial collection and storage services.
• Gemabank's Board of Directors recommended paying dividends for the six months of 2025 amounting to RUB 5 per ordinary share.
• Genetico fully repaid its RUB 145 million bond loan.
• Genetico completed a private placement of 7 million shares, all of which were acquired by Artgen Biotech Group. The total investment of Artgen Biotech Group amounted to RUB 238 million.

Overview of Artgen Biotech's Consolidated Financial Results for 6 Months of 2025 (IFRS)

For the six months of 2025, Artgen Biotech Group (hereinafter also referred to as the Group) demonstrated the following consolidated financial results:

1 EBITDA means earnings before payment of interests on loans and borrowings, income tax, and depreciation, excluding interest received. This indicator reflects the cash flow from the Company's operating activities available to creditors, investors, and shareholders.

2 EBITDA adj. means earnings before payment of interests 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 available to creditors, investors, and shareholders.

3 EBITDA R&D adj. means earnings before payment of interests 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 and excluding research expenses. This indicator reflects the cash flow from the Company's operating activities available to creditors, investors, and shareholders before investments in research.

Consolidated Revenue and Income by Major Companies of Artgen Biotech Group

The Group's consolidated revenue for the six months of 2025 amounted to RUB 838,873 thousand, representing a 13 % increase compared to the same period in 2024.

Operating Expenses, Operating Profit / (Loss), EBITDA, and EBITDA R&D

Consolidated operating expenses in the first half of 2025 increased by 24.51 % compared to the previous period.

The Group's operating profit amounted to RUB 118,328 thousand, representing an operating margin of 14.11 %.

EBITDA increased by 15.24 % to RUB 173,477 thousand compared to the same period in 2024.

EBITDA adjusted decreased by 5.65 % to RUB 173,477 thousand compared to the same period in 2024, as in the first half of 2024, this indicator included RUB 33,337 thousand from the conversion of a subsidiary's loan into its shares, and there were no similar transactions in the first half of 2025. Excluding this nonrecurrent transaction, EBITDA would have increased by 15.24 %.

EBITDA R&D, which, in our opinion, provides a more objective measure of the Group's operating profitability and margin, decreased to RUB 185,160 thousand in the first half of 2025, a 0.23 % decline compared to the same period in 2024. Excluding the nonrecurrent loan conversion, this indicator increased by 21.62 %. This figure excludes research and development expenses, which, although recorded under accounting rules in the profit and loss statement, represent investments in the development and creation of new drugs and medical devices.

Other Profit and Loss, Profit / (Loss) Before Tax

For the six months of 2025, Other Income of the Company totaled RUB 5,946 thousand. This figure represents the sum of results from membership in associates, net interest, other non-operating net expenses and negative net foreign exchange differences, reflecting a 109.13 % increase compared to the same period in 2024.

Profit / (Loss) for the Reporting Period (Net Profit / (Loss))

The Company's consolidated net profit amounted to RUB 132,433 thousand (+27.86 %).

Consolidation

The consolidated financial statements for the 6 months of 2025 include the profit or loss of Artgen Biotech, PJSC, and its subsidiaries: IMCB, PJSC, CGRM Genetico, PJSC, Reprolab, JSC, NextGen, JSC, HSCI Pharma, LLC, Betuvax, JSC, Histograft, JSC, Vitacel, LLC, Skincel, LLC, HSCI Ventures, LLC, Medtechpark, LLC, Artgen Seed Investments, LLC, and associated companies Biotechnology Developments, JSC, and Genotarget, LLC.

The interim consolidated financial statements of Artgen Biotech, PJSC, and its subsidiaries in compliance with IFRS are available at the section for investors of the Company's corporate website (Financial Statements / IFRS Reports): https://artgen.ru/investors/raskrytie-informaczii/msfo/