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How was #smartlabonline with Ozon Pharmaceutica?
On Friday, we had a successful broadcast with Ozon Pharmaceuticals, a leading Russian pharmaceutical company. The company announced its IPO and will go public in October of this year! Let's look at the key points raised in the broadcast.
Let's start with deployment options.
● IPO price range: 30-35 rubles per share.
● Market capitalization is 30–35 billion rubles.
● Investors can gain access to market shares issued through additional issues.
● Total offer amount: RUB 3–3.5 billion.
● Trading is scheduled to begin on October 17, 2024.
Did you learn anything interesting from the show?
Ozon Pharmaceuticals is the absolute leader in the production of generics in the Russian Federation. Generics are similar to the original drug with the same composition of active ingredients, but are usually used as the name of the active substance. There are exceptions when generics are branded, but their share is significantly smaller.
If we look at the Russian pharmaceutical market on a more global scale, we can see that this market has huge growth potential, and according to Alpha Research and Marketing, the share of generics will grow exponentially, reaching 56% by 2030 (36% by 2023), significantly exceeding the growth of the original drug.
Currently, the generics market is the main focus of Ozone Pharmaceuticals. Some important factors contributing to this are:
1. The price is cheaper than the original product.
2. The patent protection of the original drug expires, and we are facing a patent “collapse”.
3. Foreign drugs are gradually being removed from the market and replaced by Russian generics, the demand for which is growing every year.
Andrey Gorshkov, Director of External Communications, commented: "Ozon Pharmaceuticals is currently the dominant pharmaceutical company producing generics in the Russian Federation. The business continues to hold leading positions in key market segments."
The company also has an excellent strategy for increasing production assets. Currently, there are already production sites "Ozon" and "Ozon Pharm", producing finished drugs from synthetic active drugs (simply generics), and in the future, it is planned to launch commercial production of "Ozon Medica" (production of drugs to combat oncology and severe autoimmune diseases with special production requirements, under construction) and "Mabscale" (biotechnology, currently producing a small number of drugs for clinical trials).
Thanks to the deep diversification of its pharmaceutical portfolio, the company now ranks first in terms of the number of registered certificates. As of 2024, Ozone Pharmaceuticals already has more than 500 certificates and 248 drugs in the development and registration stage. New drugs are planned to be released every year for five years.
In terms of financial indicators, the company is performing well:
● Revenue in the first half of 2024 amounted to 12.6 billion rubles, an increase of 63% compared to the previous same period.
●adj.EBITDA grew to RUB 5 billion, increasing by 2.1 times compared to LTM in the first half of 2023.
● Net profit increased 4.4 times and amounted to RUB 2.9 billion.
The issue of dividends to shareholders was also discussed on air. The model is based on the ratio of net debt to EBITDA, and the criteria and scale of payments can be found here (slides). The company stated that the frequency of payments will be quarterly, and the basis for calculating dividends will be based on net profit under IFRS.
Ozone Pharmaceuticals is therefore a great addition to the healthcare sector on the stock market. Institutional investors have already confirmed significant interest in the company, taking 50% of their investments. We are monitoring the further financial results of our pharmaceutical business and awaiting the results of the order book closure.