Genetico’s performance for 6 months of 2023

GENETICO Center for Genetics and Reproductive Medicine (MOEX: GECO) published its performance statement the first 6 months of 2023 in accordance with Russian Accounting Standards (RAS).

Genetico Center, a resident of Skolkovo and Medtech Technopark, is an Artgen Biotech company (ex. Human Stem Cell Institute, HSCI: MOEX: ISKJ). The company works in the field of medical genetics and genetic research, implementing into medical practice innovative solutions for the diagnosis, prevention, and treatment of genetic and socially significant diseases.

Key events affecting the valuation of the company:

IPO on the Moscow Exchange

On April 25, 2023, the company conducted an IPO on the Moscow Exchange, placing all its shares. The order book was oversubscribed 2.5 times, the total demand was over RUB 439 million. The company offered 10 million shares and raised RUB 178.8 million, its market capitalization as of the offering date was RUB 1.48 billion. Genetico’s shares are traded in the IIM (Innovation and Investment Market) sector, the exchange sector for high-tech companies with significant growth potential. Genetico’s shares are listed as high-tech economy sector securities. The funds raised during the IPO will be used to develop genetic services in the country, enter foreign markets, register their own test systems, and create drugs to treat orphan diseases.

Development of focus areas

Genetico is developing the following focus areas:

• Development of gene therapy drugs for the treatment of orphan diseases.
  The company is currently at the stage of selecting candidate drugs for the treatment of ophthalmological diseases, hereditary cardiomyopathies, and neurodegenerative diseases.
• Development of assays. Genetico develops its own assays for early diagnosis and prevention of various diseases. For instance, Prenetix (NIPT) was approved by Roszdravnadzor on June 23 for use as a medical device for detecting chromosomal abnormalities of the fetus using the mother’s blood. This was the first NIPT system registered in Russia under Decree of the Government of the Russian Federation No. 2026 dated 11/24/2021. Health care institutions now can legally provide prenatal screening services using Prenetix. The company also expects to have other assays, such as Embryotest and Onconetics, approved by the end of 2023.
• Services. Genetico provides a wide range of medical and genetic services for medical facilities and their patients. The company conducts research aimed at identification, early diagnosis, and prevention of genetic, oncological, orphan, and other socially significant diseases.
  In addition to genetic research, the Company provides medical and genetic consulting and bioinformatics analysis for patients and medical facilities.

Medical center construction

Genetico began construction of a new medical genetic center on the premises of Medtech Moscow, the Technopark of the Moscow Center for Innovative Technologies in Healthcare. Construction, equipment, and licensing of the medical center is scheduled to be completed in September 2023. Patients of all ages will be able to receive consultations from leading geneticists, and experienced nursing staff will collect biomaterial for molecular and genetic testing. By locating the medical genetic center in a modern cluster of innovative healthcare technologies, the company will unite the expertise of physicians and developers. Exchange of experience and cooperation will accelerate the introduction of advanced genetic technologies in Moscow’s healthcare practice.

Entering foreign markets

The company is analyzing the profitability of entering new markets and is negotiating with Kazakhstan and the UAE to expand its presence abroad.

Genetico consolidated performance review for the first 6 months of 2023 according to RAS

Revenue increased by 9% over the past 6 months compared to 2022. The growth drivers were genetic screening for chromosomal abnormalities (Embryotest), exome sequencing services, and an increase in bidding sales.

The loss on sale decreased by 7.7 times. Over the 6 months, EBITDA became positive and amounted to 6% of the Company’s revenue.

Key indicators of the financial statement

Key indicators of the balance sheet

Capital and reserves increased by 31.9% as a result of the successful IPO on the Moscow Exchange. The debt burden decreased by 35%. Currently, the Company’s entire debt is in the form of a bond-secured loan.

For the consolidated financial statements of Genetico Genetics and Reproductive Medicine Center, PJSC for the first 6 months of 2023 according to RAS, please visit the corporate website: https://investors.genetico.ru/

For additional information, please email krasotkin@Nextgene.ru