Artgen Biotech (formerly Human Stem Cell Institute)

A Russian biotechnology company established in 2003, developing and promoting medical drugs and services based on cellular and gene technologies. One of the activities of ISKCh is the cord blood stem cell personal storage bank - Gemabank.

Hemabank has been providing services for the isolation and long-term storage of hematopoietic stem cells (HSCs) from cord blood since 2003, and is a leader in this direction in the Russian market. Today, more than 22,000 cord blood samples are stored in Gemabank. Gemabank collaborates with the world's leading transplant centers and has issued 18 cord blood samples for its clients since 2004.

Hematopoietic stem cells are the source from which all cells of the hematopoietic and immune system develop, as well as some other types of cells. If, for some reason (chemotherapy, hereditary diseases), immune and hematopoietic cells are badly damaged in a person, then with the help of hematopoietic stem cell transplantation, as some kind of insurance reserve, it is possible to re-restore and "reboot" the patient's entire hematopoietic and immune system.

Hematopoietic blood stem cells are used for transplantation to treat a number of severe diseases. Today, these are primarily oncohematological diseases (leukemias), blood diseases (for example, various types of anemia) and the immune system, as well as certain hereditary diseases. Transplants of such cells are carried out around the world to restore hematopoiesis and immunity after high-dose chemotherapy.

Allogeneic (including related) transplants of HSC from cord blood, bone marrow and peripheral blood are most often used for the treatment of both children and adults, as well as autologous transplants of HSC from peripheral blood. The latter are mainly used for the treatment of adults, since personal cord blood banks exist only 20 years in the world and 10 years in Russia, and diseases in the therapy of which autotransplantation can be used, more often arise at an older age than current investors of cord blood banks.

Cord blood-derived HSCs are much younger than bone marrow and peripheral blood cells of the same type, since they are preserved at the very beginning of life and are in a state of high biological activity. It has been proven that in allogeneic transplantation, cord blood cells are less likely to cause a complication such as graft-versus-host reaction than bone marrow and peripheral blood cells. The presence of a personal bank allows transplantation and saving the life of also the closest relatives of the child whose cells are stored, namely, the sick brother or sister, since for them such GSKs can be tissue-compatible donor material.

Performance indicators

2023: Revenue growth by 20.4% to RUB 1.37 billion

According to the results of work in 2023, Artgen Biotech earned 1.37 billion rubles in revenue, which is 20.4% more than a year ago at 1.14 billion rubles. The group's net profit in comparison with these segments of time rose by 743.6% - from 23.1 million to 194.7 million rubles. Such data are given in the reporting that the biotechnological holding published in April 2024.

From the materials of Artgen Biotech it follows that in 2023 EBITDA (profit before interest on borrowed loans and loans, income tax and depreciation, excluding interest received; the indicator reflects the cash flow from the company's operating activities, which remains at the disposal of creditors, investors and founders) of the company in 2023 increased by 116.6% - to 299.2 million rubles. EBITDA margin was 21.86% versus 12.15% for 2022.

Artgen Biotech earned 1.37 billion rubles in revenue

Operating profit in 2023 increased by 148.4% and amounted to 275.5 million rubles. In the revenue structure, the largest revenues in 2023 fell on sales of the drug Neovaskulgen: in 2023 they reached 454.7 million rubles, which is 45.2% more than a year earlier.

In the genetic research market, the group's revenue in 2023 reached 340.4 million rubles, an increase of 19.3% on an annualized basis. Gemabank's services for the storage of biomaterials brought the company annual revenues in the amount of 287.1 million rubles, which is 11.8% more than in 2022. Revenue from the services of the bank of reproductive materials during this time rose by 15.4%, to 205.9 million rubles.

At the end of 2023, the group's board of directors adopted an updated strategy, according to which by 2026 Artgen Biotech plans to form a portfolio of 10 candidate drugs for the treatment of genetic, age-dependent, infectious and oncological diseases, for the subsequent launch of 5-6 drugs on the market.^[1]

2015

• The revenue of ISKCH PJSC for 2015 amounted to 227.426 million rubles, which is 38.8% lower than the revenue demonstrated at the end of the previous year (in terms of income from the separation and cryopreservation service of SC PC, which since the 4th quarter of 2015 has been a 100% subsidiary of MMCB LLC: RUR 249.345 million, which is 32.9% lower than the revenue for 2014^[2]
• Gross profit amounted to 112.0 million rubles, with a gross margin of 49.3%.
• OIBDA OIBDA^[3] amounted to 16.0 million rubles; OIBDA margin was 7.0%.
• Profit from sales amounted to 2.6 million rubles.
• The net profit of ISKCH PJSC in 2015 amounted to 9.1 million rubles.

The main reason for the decrease in revenue, compared to 2014, is the difference in the amount of income received from the sale of the innovative drug Neovaskulgen.

It should also be noted that revenues from the provision of genetic diagnostics and consulting services, as well as Reprobank services, starting from the 2nd quarter of 2013, are reflected in the revenue of CGRM GENETICO LLC (until October 2015 it was called CGRM ISKCH LLC), a subsidiary of ISKCH PJSC, and, accordingly, are included in the Company's consolidated revenue under IFRS.

Neovasculgen is an original innovative, "first in class" gene therapy drug for the treatment of ischemia of the lower extremities of atherosclerotic genesis (chronic - CIN, including critical - CIN).

In 2015, revenues from sales of Neovaskulgen amounted to 1,454 million rubles, while at the end of 2014, revenues from the sale of Neovaskulgen to distributors amounted to 123,695 million rubles.

Cord blood stem cell collection, isolation, cryopreservation and long-term storage service (SC PK) - bio-insurance (Gemabank). Revenues from this service, reflected in the revenue of ISKCH PJSC, amounted to 178.052 million rubles in 2015 (78.3% of the company's total revenue). However, since the service has been provided since Q4 2015 by ISKCH PJSC's subsidiary MMCB LLC (see below), the total revenue generated from Gehmabank's activities in 2015 is RUB 199.971 million. Compared to the previous year, Gemabank's revenues increased by 2.1%.

SPRS therapy is a complex of personalized medical and diagnostic procedures for skin repair with signs of age and other structural changes. Revenues from SPRS therapy, including long-term cryopreservation of our own skin fibroblasts, amounted to 30.762 million rubles in 2015 (13.5% of the company's total revenue). Compared to 2014, revenues increased by 32.6%.

2014

The revenue of ISKCH OJSC for 2014 amounted to 371.583 million rubles, which is 7.6% lower than the revenue demonstrated in 2014.

The main reason for the decrease in revenue compared to the same period in 2013 was the difference in the amount of income received from the supply of the innovative drug Neovasculgen. In 2013, revenues from the sale of Neovaskulgen to distributors amounted to 166.680 million rubles, while in 2014 - 123.695 million rubles.

It should also be noted that revenues from the provision of genetic diagnostics and consulting services, as well as Reprobank, starting from the 2nd quarter of 2013, are reflected in the revenue of CGRM ISKCH LLC (a subsidiary of ISKCH OJSC) and, accordingly, are included in the Company's consolidated revenue under IFRS. The company reports according to IFRS twice a year - for 6 months and for a year, according to RAS, reports are issued four times a year (for 3, 6, 9 months and for a year). Therefore, in order to regularly provide comparative information and information on the development of the Genetico project (genetic diagnostics and consulting services, Reprobank services), the press releases based on the results of the Company according to RAS provide the revenues of the CGRM ISKCH from these services for the corresponding reporting period.

Revenues from distribution to distributors of Neovaskulgen innovative drug developed by ISKCH amounted to 33.3% of the company's total revenue (RUB 123.695 million) in 2014.

The service of sampling, isolation, cryopreservation and storage of cord blood stem cells (SC PK) is biostraining (Gemabank): revenues from this service amounted to 52.7% of the company's total revenue (195.862 million rubles) in 2014. Compared to 2013, revenues decreased by 2.7%.

In the reporting year, ISKCH's revenues from the storage of PC ICs showed growth (+ 16.0% - 65.419 million rubles against 56.402 million rubles for 2013), while revenue from the separation and cryopreservation of PC ICs decreased (-9.9% - 130.443 million rubles against 144.821 million rubles in 2013). As of the end of 2014, the total number of personal samples of PC SC stored in Gemabank increased to 22.1 thousand.

SPRS therapy is a complex of personalized medical and diagnostic procedures for skin repair with signs of age and other structural changes. Revenues from SPRS therapy, including long-term cryopreservation of own skin fibroblasts, amounted to 6.2% of the company's total revenue (23.2 million rubles) in 2014. Compared to 2013, revenues increased by 16.4%.

Genetic diagnostics and counseling services, as well as Reprobank in the MHC "Genetico." Revenues from genetic diagnostics and consulting services, as well as Reprobank, reflected in the revenue under RAS LLC TsGRM ISKCH, a subsidiary of OJSC ISKCH, amounted to 23.0 million rubles in 2014 - 4 times the revenue demonstrated from these services for the entire previous year.

Operating expenses of ISKCH amounted to 316.078 million rubles in 2014, a decrease of 7.2% compared to the previous year. The decrease in operating costs was due to a reduction in both cost and management and, in particular, commercial costs.

OIBDA amounted to RUR 70.967 million with an OIBDA margin of 19.1% (compared to RUR 78.459 million and 19.5%, respectively, in the previous year). Profit from sales (operating profit) amounted to 55.505 million rubles in 2014 (against 61.484 million rubles in 2013), with an operating margin of 14.9% (against 15.3% in 2013).

The result of other activities received by the Company in 2014 is negative and amounts to -33.154 million rubles, although, compared to the previous year, it decreased (by 15.6% against -39.287 million rubles for 2013):

• Due to a decrease in principal debt under long-term loan agreements, the Company reduced interest payable in the reporting year, which, along with an increase in interest receivable through loans, led to a decrease in net interest expense compared to 2013 (respectively,

up to -4.938 million rubles against -13.960 million rubles).

• However, in 2014, the Company showed other losses (the difference between other expenses and other income in the Statement of Financial Results F.2), which amounted to 28.216 million rubles, an increase of 11.4% compared to the previous year.

Despite significant gains from revaluation of the market value of acquired securities (quoted shares), which amounted to 57.816 million rubles (against 13.491 million rubles for 2013), in 2014, the Company additionally charged the provision for impairment of financial investments in 50% associate LLC MC Gemafond, Ukraine - in the amount of RUR 29 million (in connection with its sale in 2015 at a price below the purchase price - see "Events after the reporting date" in the Explanatory Note to the Reporting of the ISCH under RAS for 2014).

History

2023: Name change to "Artgen Biotech"

In July 2023, the Human Stem Cell Institute was renamed Artgen Biotech. According to the management statement, the changes are aimed at making the company's activities, strategy and values more understandable to a wide range of investors and society. "

2022: Purchase of a controlling stake in the biotech company Histographt

The Human Stem Cell Institute (ISKCH) bought a controlling stake in the biotech company Histograph, which was announced in April 2022. The total amount of investments calculated for 2022-2023 is 50 million rubles. At the same time, the share that ISKCH received in the startup is not specified. Read more here.

2021: Investing in the developer of bone tissue regeneration technologies "Histograph"

On January 22, 2021, the Institute of Human Stem Cells (ISKCH) announced the investment of 37.7 million rubles in Histograph. The Russian developer of bone tissue regeneration technologies plans to spend the funds raised on the introduction of new materials for bone repair into clinical practice. Read more here.

2020: Investing in the developer of vaccines "Development of BioTechnologies"

On December 15, 2020, the Human Stem Cell Institute (ISKCH) announced the investment of 47.6 million rubles in the BioTechnologies Development company. Read more here.

2019

• As of Q2 2019, about 30,000 cord blood samples are stored in Gemabank.

Shares of Gemabank admitted to trading on the Moscow Exchange

On June 27, 2019, shares of PJSC International Medical Center for Processing and Cryogranization of Biomaterials (MMCB) were included in the list of securities admitted to trading on the Moscow Exchange.

In April 2019, the Bank of Russia registered the Prospectus of the International Medical Center for the Processing and Cryogranization of Biomaterials. The issue consists of 223,948 ordinary shares, each with a par value of 10 kopecks. In the near future, PJSC MMCB plans to place securities on the Moscow Exchange.

Gemabank plans to hold an IPO on the Moscow Exchange

On April 25, 2019, the Bank of Russia registered the Prospectus of Issue (IPO) of the International Medical Center for the Processing and Cryogranization of Biomaterials (PJSC MMCB). The issue consists of 223,948 ordinary shares, each with a par value of 10 kopecks.

MMCB is a 100% subsidiary of PJSC Human Stem Cell Institute and is engaged in personal storage of cord blood stem cells under the Gemabank brand.

According to the Chairman of the Board of Directors of MMCB Artur Isaev: "The decision on the timing of the placement of securities on the Moscow Exchange will be made in the near future. The company plans to direct the funds received from the placement to business development, including expanding and equipping the cryovessel and laboratory, as well as conducting research for the therapy of severe diseases using cord blood stem cells. "

2017: U.S. patent for innovative regenerative medicine material

On July 6, 2017, the Human Stem Cell Institute (ISCH) announced the receipt in the United States of a patent for an innovative material for regenerative medicine. The document entitled "Biocomposite for the provision of recovery processes after damage in a mammal, the method of its production (options) and use" was registered by the subsidiary of ICH - NextGen LLC.

The invention is a three-component system consisting of a carrier matrix, DNA carrying human genes and cells providing regeneration.

The developers say that biocomposites located at the junction of gene-activated and tissue-engineering materials technologies will in the future be able to significantly increase the effectiveness of treatment of patients with musculoskeletal injuries, increase their quality of life, and reduce the frequency of disability.

The Biocomposite patent protects products and technologies that can meet the acute global need of clinical practice for effective materials for the restoration of tissues and organs, primarily tissues of the musculoskeletal system and skin.

According to NextGena, more than 1.8 billion reconstructive surgeries on skeletal bones in traumatology and orthopedics are carried out in the world every year, and in Russia at the end of 2015 their number was 291.6 thousand. In dentistry and maxillofacial surgery in global practice in 2015, bone plastic was performed in 51.3 million cases, in Russia the number of patients amounted to 205.4 thousand.

ISCH notes that by July 2017, the company has a total of about 74 Russian and foreign patents and patent applications.

The main area of ​ ​ activity of NextGen is scientific research, development and their implementation in the field of gene and cell therapy, the development of methods for treating diseases using gene therapy drugs and the method of therapeutic angiogenesis, the development of methods for treating hereditary diseases. One of the most important areas of the company's work is the development of genactivated matrices - a new class of materials for bone surgery and tissue engineering.

2016

Every 500th cord blood sample is used for treatment

According to analytical data obtained by the Human Stem Cell Institute, there are 14 personal cord blood storage banks in the Russian Federation, among which Gemabank occupies a leading position. In total, more than 55,500 samples were stored in Russian personal cord blood banks as of December 31, 2015. The share of Gemabank is 44%.

The demand for samples from personal banks (the number of transplants performed) is an important indicator of the cord blood preservation industry and indicates the readiness of the health care system to use this biomaterial.

As of May 2016, 106 cord blood units are in demand from Russian personal storage banks, of which 17 samples are for autotransplantation, 89 are for allogeneic transplants. Thus, the total demand for samples is 1/500.

Gemabank issued 21 samples to its clients, some of them for transplants in Russian medical institutions, and some of them in foreign ones. About 25,000 cord blood samples are currently stored in Gemabank. The demand from Gemabank is 1/1190.

According to statistics, the demand for cord blood samples from personal banks in Europe and the United States in recent years ranges from 1/3000 to 1/1750.

According to the founder of Gemabank Artur Isaev, "The demand for cord blood for transplants from cord blood banks has been growing in recent years. This is due to a whole list of factors. First of all, with the fact that transplantation of hematopoietic cells becomes a more effective and safe method. With the development of new areas of regenerative medicine in which cord blood stem cells are used. And the main thing is that the age of "depositors" of such banks is growing. It is known that the incidence increases with age, especially in the field of oncology and those diseases where regenerative medicine methods are used. Accordingly, under the age of 20, the percentage of use of this material is relatively low. But with age, as well as as as a result of the introduction of new methods of treatment and increasing the effectiveness and safety of transplantation as a method of treating cancer, hereditary, autoimmune and other diseases, the demand will only increase. In my opinion, the demand for samples in the next 20-30 years will increase from 1/1500 to several percent. "

Cord blood contains so-called hematopoietic stem cells. These cells are the source from which all cells of the hematopoietic and immune systems develop, as well as some other cell types. If, for some reason, immune and hematopoietic cells are badly damaged in a person (for example, as a result of chemotherapy), then with the help of hematopoietic stem cell transplantation, as some kind of insurance reserve, it is possible to re-restore and "reboot" the patient's entire hematopoietic and immune system. Today, through transplantation of hematopoietic cells, oncohematological diseases (leukemias), blood diseases (for example, various types of anemia) and the immune system, as well as some hereditary diseases are treated.

Hemabank funds research, development and implementation in practical health care of new treatments for severe diseases with cord blood. In 2011, Gemabank announced the launch of the Adam Nash Program for families with children with hereditary diseases. This program is dedicated to the development and implementation of methods for the treatment and prevention of a number of hereditary diseases using cord blood stem cell transplantation, IVF and PGD technologies. As part of this program, the first child was born in Russia in 2014, the umbilical cord blood of which became a means for the necessary treatment of an older sister diagnosed with Schwachman-Diamond syndrome.

Human Stem Cell Institute plans to hold SPO in fall 2016

On July 29, 2016, plans were announced to attract investments by placing an additional issue of shares by open subscription (SPO) on the Moscow Exchange in the fall of 2016. On July 28, 2016, the Board of Directors of ISKCH PJSC decided to increase the authorized capital of the Company from 7,500,000 to 9,300,000 rubles by additional issue of ordinary registered non-documentary shares in the amount of 18,000,000 units, each with a nominal value of 10 kopecks, placed by open subscription.

The Decision on the additional issue of securities and the Prospectus of securities, which, accordingly, must be filed for registration within 30 days, were also approved. The offering price of one share (including the persons having the pre-emptive right to acquire shares) will be determined by the Board of Directors based on the market value after the expiration of the pre-emptive right (which begins after the registration of the issue documents) and no later than the start of the placement of shares.

2015

ISCH concluded a settlement agreement with Media Holding Expert

Human Stem Cell Institute (ISKCH) and Media Holding Expert ID entered into an amicable agreement in the case of recovery from Media Holding Expert 44.4 million rubles as compensation for losses and reputational damage incurred by ISKCH caused by the publication in the journal Russian reporter of the article "Money on the blood of babies." The settlement was approved by the Ninth Arbitration Court of Appeal and entered into force on March 12, 2015. The parties agreed that the publication of the article "Money on the blood of babies," posted in Russian reporter No. 3 (281) dated January 24-31, 2013 and on the magazine's website caused damage to business reputation and caused losses to the ISCh, in connection with which ISCh has the right to compensation for reputational harm and compensation for losses.

According to the terms of the settlement agreement, Media Holding Expert will provide ISKCH with advertising space in the Expert magazine as compensation for reputational damage and compensation for losses.

According to Artur Isaev, General Director of ISKCh: "We decided to meet the defendant halfway and conclude an amicable agreement. The modern press is in a difficult economic situation today. Media holding Expert publishes some of the best print media in Russia. The areas obtained as compensation in the Expert journal will be used, among other things, to popularize socially significant projects and technologies related to transplants of hepopoietic stem cells of the bone marrow and cord blood, as well as to the prevention and treatment of hereditary diseases. "

Hemabank launches new storage for cord blood samples

The Russian cord blood stem cell bank Gemabank commissioned a new cryovessel in the spring of 2015. The automated storage facility is designed and built to meet all requirements for such facilities and allows up to forty thousand cord blood samples to be placed. The technical characteristics of the facility and equipment allow monitoring and monitoring of the operation of each storage facility in real time.

According to the director of Gemabank Alexander Prikhodko: "The demand for samples from personal cord blood storage banks is growing every year. This is primarily due to the fact that such a method of treatment as umbilical cord blood transplantation is increasingly being used in medical institutions. Gemabank has already issued 18 samples to its clients, some of them for transplants in Russian medical institutions, and some of them in foreign ones. Despite the fact that cord blood banks have existed in Russia for more than 10 years, many parents and specialists do not have complete information about how quickly and actively the use of cord blood stem cells is developing. There are a lot of myths in this area, and few people know about the real state of affairs. Meanwhile, by 2015, experts estimate that more than 30,000 cord blood transplants have already been performed worldwide. "

ISKC opens skin fibroblast bank

Human Stem Cell Institute (ISCH) announced in March 2015 the launch of a personalized patient skin fibroblast banking service called "SPRS-bank" ^[4].

On the basis of ISKH, you can preserve your own skin cells - fibroblasts, which is a kind of biological insurance of beauty and skin health. In the future, these cells can be used to correct age-related changes in the skin of the face, neck, neckline, hands using the unique SPRS-therapy technology developed in the ISFR, or to treat the skin in case of unforeseen circumstances (burns, various traumatic skin injuries).

To create a bank, the patient takes a small piece of skin (4 mm) from the ear area. Cells - fibroblasts are isolated from it in the ISKH laboratory, their diagnostics are carried out in order to assess the regenerator potential. The patient is given a so-called Skin Passport and SPRS program, on the basis of which the cosmetologist will be able to develop an individual skin care program for the patient in order to maintain it in good condition for a long time. In the process of culturing fibroblasts in the IMS laboratory, only young and active cells are selected and stimulated. Isolated fibroblasts are stored.

In the future, if necessary, preserved fibroblasts "multiply" to the desired number (tens of millions) and are injected into problem areas of the skin. Since fibroblasts are obtained from the skin of the patient himself, they easily take root and, actively producing a whole range of important components, contribute to the restoration of physiological balance and natural renewal processes in the skin. The effect of this technology is growing up to 12 months in nature and remains for at least 2 years.

ISKCH became a partner of Skolkovo

The Human Stem Cell Institute (ISKCH) received the status of a partner of the Development Fund of the Center for the Development and Commercialization of New Technologies (Skolkovo Foundation). As part of the partnership, in 2016 ISKCH will create an R&D Center on the territory of the Skolkovo Innovation Center, in which it plans to develop areas related to the development of diagnostic panels for the prevention of severe hereditary diseases, the creation of tools for DNA sequencing and analysis, bioinformatics, omix technologies, biomedical data repositories, as well as with the banking of biological materials.

Two subsidiaries of ISKCH - Vitacell LLC and NecstGen LLC are already residents of Skolkovo in the biomedical technology cluster. NextGen is engaged in scientific research, development and their implementation in the field of gene and cell therapy, methods of treating diseases with gene therapy drugs and therapeutic angiogenesis. Vitacel is a developer of personalized application of skin fibroblasts and periodontal tissues.

ISCH received the status of a venture partner of RVC

The Human Stem Cell Institute received the status of a venture partner of the Seed Investment Fund of the Russian Venture Company (FPI RVC). Certificate of registration of VP: No. 15019.

From cooperation, FPI RVC and ISKC plan to get synergistic effects that will allow innovative biotechnology companies to scale their business faster, save time and money on development and market entry. As well as shorten the time between investment rounds, provide a wide variety in financing tools and a wide network of partnerships with institutions and large companies around the world.

As a venture partner, ISKCH plans to prepare and submit Investment Projects to FPI RVC in the form of a Transaction ready for implementation, make proposals for conducting additional rounds of investment in Portfolio Companies and help with organizing a "withdrawal" from the investment. After the investment, FPI RVC and ISKC will monitor the portfolio company, collect information and submit it to FPI RVC.

2014: Court obliges Russian Reporter to pay ISKCH 46 million rubles

On October 28, 2014, the Moscow Arbitration Court ordered to pay 46.5 million rubles in favor of ISKCH in connection with losses and reputational harm caused by the publication in the Russian Reporter magazine.

On January 24, 2013, the Russian Reporter magazine and the Internet, on the website of this magazine, published an article "Money on Babies' Blood," containing untrue and defamatory information about the Human Stem Cell Institute (ISKC) stem cell bank Gemabanka and cord blood banking in Russia. The founder of the magazine Russian Reporter is CJSC Media Holding Expert.

On June 25, 2013, in a statement of claim to the Arbitration Court of the City of Moscow, the ISKC demanded that Media Holding Expert be obliged to publish the text of the ISKC response in the Russian Reporter magazine. The Arbitration Court of the City of Moscow fully satisfied the claim of the ISKCH and ordered Media Holding Expert to publish the ISKCH's response in the nearest, after the entry into force of the decision, issue of the Russian Reporter magazine.

"Media holding" Expert "until that time evaded the execution of the court decision. The widespread inaccurate and defamatory information caused harm to the business reputation of the ISCH, and also led to a significant decrease in the number of contracts concluded by Gemabank since February 2013 for the provision of cord blood banking services. As compensation for reputational harm and in favor of the losses incurred, ISKCH filed a lawsuit to recover an amount of 75,930,000 rubles from CJSC Media Holding Expert and CJSC Expert Group, and also asked to oblige CJSC Expert Group to remove the Internet pages from the published article on the website of the Russian Reporter magazine.

On October 28, 2014, the Moscow Arbitration Court decided to recover a total of 46,500,930 rubles from Expert Group CJSC and Expert Media Holding CJSC as compensation for losses and reputational damage incurred by ISKCH. The Court also ordered the Expert Group to delete the Internet pages with the published article.

According to Artur Isaev, Director of the Human Stem Cell Institute:

"We are

satisfied with the court's decision. A lot of effort and time has been spent on this legal battle. We consider the court decision very important not only for Gemabank and the development in medical practice of the use of cord blood cells, but also for journalism and business in general. Journalists will more understand the degree of their responsibility, strength and price of their words, and business will be more confident that reputation in Russia is a real value. It is journalists who form public opinion, with which reputation is inextricably linked. We know the magnificent pen masters who work in the Media Holding Expert and the Russian Reporter. They brought and bring many benefits to society, professionally covering the topic of new technologies, science and medicine. But it is obvious that this article was a mistake of journalists, in which the author, without understanding the details, unfounded accused the whole industry of a non-existent crime, which caused tangible harm to the company and the direction of cellular technologies as a whole. And the development of this direction is in the interests of society and people. It is the interests of the people that should be protected by journalism. "

"I know the difficult economic situation in which many print media are now, and specifically one of the best publications in the country - the magazines Expert and Russian Reporter, and their employees. We sought to be heard - asking journalists we respected to publish our opinion - wanted justice. The court carefully considered the case and made an honest and fair decision. Despite winning in all instances in cases related to this article, we are ready to meet the "Russian Reporter" and the defendants and conclude an amicable agreement even at this stage. If this cannot be done, then we will send all 46.5 million rubles for compensation for losses and reputational harm to charitable foundations for the treatment of children with leukemia and hereditary diseases - it is for such patients and for creating methods of treating similar diseases that Gemabank and the entire team of the Human Stem Cell Institute work. "

ISCH expresses gratitude to the Polyakov Law Bureau for its sincere participation, high professionalism and cooperation in this trial.

2010: Neovasculgen Development

In August 2010, ISKCH develops and registers the first Russian gene therapy drug Neovasculgen for the treatment of critical ischemia of the lower extremities and the first cell drug Gemacell for the treatment of heart disease and cirrhosis, as well as SPRS therapy for the treatment of skin defects using autologous skin fibroblasts.

2009: First IPO of biotech company in Russia

In 2009, the Human Stem Cell Institute conducted the company's first bio-tech IPO in Russia and the only IPO at MICEX in 2009. The IPO opened bidding on a new platform for innovative and fast-growing MICEX RII companies, created at MICEX with the support of Rosnanotechnologies.

Notes