Gemabank results for 2023 according to RAS

The International Medical Center for the Processing and Cryostorage of Biomaterials (IMCB, MOEX: GEMA) published its operating results for 2023, prepared in accordance with Russian Accounting Standards (RAS).

IMCB (Gemabank) is a biotechnology company, part of the Artgen Biotech group of companies (MOEX: ABIO), engaged in the personal storage of biomaterials, primarily hematopoietic stem cells, and the development of gene therapy drugs for the treatment of blood and immune system diseases.

In 2023, Gemabank's net profit increased by 28.1% and amounted to RUB 125.780 mln. The Company's revenue increased by 11.3% to RUB 283.512 mln. At the same time, EBITDA amounted to RUB 158.595 mln (55.9% of revenue).
 
Key events for 2023:

• At the end of 2023, the total number of biomaterial samples in the Gemabank database was about 40 thousand. The number of samples accepted for storage increased by 15.8% compared to 2022.
• Gemabank began financing the development of gene therapy drugs for hemophilia A and B, and HIV infection. The development of candidate drugs is carried out jointly with biotech company Swiftgen and will enable Gemabank to form a portfolio of gene therapy drugs in the next 2-3 years. Development is at the stage of design and evaluation of drug candidates and testing them in vitro.
• ACRA confirmed the credit rating at BB+(RU), especially noting the company's high profitability and strong liquidity.
• In 2023, the company increased the cost of cryogenic storage of biomaterial to RUB 9,000 per year, with annual payment.
• The shares were split 1 to 10.
• During 2023, RUB 122.8 mln of dividends were paid.

Despite the falling birth rate, Gemabank managed to increase revenue by 11.3%. Thanks to constant work with doctors and new clients, the growth potential for the umbilical cord stem cell storage service has been maintained. The growth rate of demand for the service of preserving umbilical cord blood samples will have a significant positive impact on the increase in the number of examples for the practical use of stem cells for the treatment of serious diseases and media coverage both in Russia and in the world.

The development of new gene therapeutic drugs for the treatment of blood diseases and immunodeficiencies will make it possible in the future to diversify the company's income, and in the coming years of 2024-2025 will have a positive impact on the company's image.

Strategic goals that the company sets for itself for 2024 – 2026:

• Maintaining the leading position and market share of 40% among cord blood banks in the Russian Federation, as well as arranging activities that promote the use of cord blood in practical healthcare.
• Development of new innovative gene therapy drugs in the next 2 years, with the aim of creating our own product portfolio, which will allow diversifying the sources of funds in the future.
• Increase in sales volume by 25-30% due to strengthening of work in the Siberian Federal District, Northwestern Federal District, Central Federal District, as well as with the planned entry into the newly annexed territories.
• Expanding the partner network of clinics to use hematopoietic stem cells in the field of regenerative medicine in Moscow and other regions.
• If possible, carrying out a transaction to purchase a business from a cord blood bank/s (M&A transaction).
• Expanding the geographic presence of Gemabank in the Russian Federation.

Key Income Statement indicators in 2023

Key balance sheet indicators in 2023

The financial statements of IMCB PJSC for 2023 can be found on the Company’s corporate website in the "For investors" section.