Cifra Broker has published an analytical report on the Artgen Biotech’s performance (MOEX: ABIO) for the first half of 2024. Target price: RUB 130 per share.
Cifra Broker’s analysts have given a positive assessment of Artgen Biotech’s performance during the first half of 2024. In healthcare segments where Artgen Biotech is represented, the market is still far from saturation, and the company’s developments remain in demand. Analysts are particularly optimistic about the fact that investments in R&D are already bearing fruit, and the company is profiting from the developments implemented and off-the-shelf products.
Artgen Biotech showed good financial results in the first half of 2024. Over the first six months of 2024, the company’s consolidated revenue increased by 20% compared to the same period in 2023, amounting to RUB 745 million. The revenue growth was driven by a diversified portfolio of developments Artgen Biotech is implementing in healthcare practice. In particular, sales of Neovasculgen increased by 18.6%, sales of Gemabank’s biomaterial storage services increased by 18%, and the revenue from genetic research services increased by 15.8%.
Neovasculgen sales remain the main driver of the company’s revenue growth, and the scope of application of this drug is being actively expanded. Clinical trials of using Neovasculgen to treat diabetic foot syndrome and interstitial cystitis are underway. If the trials are successful, the product could be released on the market for these indications as early as 2026-2027.
Taking into account the seasonality of the company’s business and the strong first half of the year, analysts have increased their forecast for Artgen Biotech’s revenue for 2024. They believe that the figure will increase by 22% compared to 2023.
At the same time, despite good financial results and optimistic forecasts, the key rate growth and the hawkish stance of the Bank of Russia did not allow analysts to increase the fair valuation of Artgen Biotech’s shares at this stage, so the target price remains at RUB 130 per share.