Holding company PROMOMED DM received long-term credit rating ruBBB +

Promomed 16 April 2024

On November 27, the Expert RA rating agency assigned a credit rating at the ruBBB + level to the non-financial company PROMOMED DM LLC. This is the highest rating in the category, its assignment became possible due to the balanced financial policy of Promomed Group and a comfortable level of debt burden. Rating outlook – stable.

To assign a credit rating, the Agency used the consolidated financial statements of PROMOMED DM in accordance with IFRS standards. Over the past years, the company has been audited by Deloitte, one of the four largest global companies providing audit and consulting services. As noted in the release of «Expert RA», the company is one of the largest pharmaceutical manufacturers, as well as a leader in the segment of endocrinology for the treatment of obesity and management of food consumption behavior, treatment of coronavirus infection; the company is also included in the TOP-5 largest manufacturers of antibiotics in Russia.

The Agency's experts highlight that PROMOMED DM continues to increase production volumes and expand the scale of its business. The main focus of development will be aimed at increasing the diversification of the product portfolio. The priority area is to expand the line of antibacterial and antiviral drugs, including those for COVID-19. The company also plans to create new products in the segments of oncology and neurology.

«The large investment program includes the development and production of active pharmaceutical ingredients and finished dosage forms, for the implementation of which during the active investment phase the company plans to allocate about 7 billion rubles until 2023. The investment program also includes the construction of new laboratories, a workshop for the production of cancer drugs, and the expansion of tablet production. The product portfolio will include new therapeutic groups and more than 100 new molecules. The approval process of own active pharmaceutical substances for the production of own finished drug products is already underway,» the press release informs. «The company is in an active investment phase and among all plans to place a debut bond issue in the amount of one billion rubles to finance investments,» the agency's analysts explain.

Earlier, on October 13, 2020, the Moscow Exchange registered the Series 001P Bond Program of PROMOMED DM LLC amounting up to 1.5 billion rubles inclusive or the equivalent of this amount in foreign currency. The program has been assigned registration number 4-00560-R-001P-02E. The bonds placed under the perpetual program have a maximum maturity of 10 years.

PROMOMED DM LLC is a 100% subsidiary of Promomed Holdings (Cyprus) Limited – the parent structure for the business of PROMOMED. The Group operates in the pharmaceutical market of the Russian Federation for the production and wholesale of pharmaceutical products. PROMOMED DM LLC is a management company for the group's business units and a trading house for the wholesale of manufactured products. PROMOMED DM, which share of assets and cash flow in the consolidated statements exceeds 30%, is included in the consolidation perimeter of the PROMOMED GROUP. As of December 31, 2019, according to the consolidated financial statements in accordance with IFRS, assets amounted to RUB 6.1 billion, capital – RUB 1.9 billion. Revenue at the end of 2019 amounted to 5.2 bln rubles, net profit - 875 mln rubles.