ISKCh knows how to profit by a cage

The company Institute of stem cells of the person held presentation following the results of two years passed after IPO, and also presented development strategy till 2016. In the next years very active growth is supposed, and it should be reflected in company capitalization positively.
In my opinion, prospects of development of a portfolio of projects as a financial and operational performance of the company completely depends on it are especially interesting to investors and shareholders. If before IPO it had only one product in the market, now such products already four, and by their 2016 will be nine that considerably will increase growth rates of revenue.

By 2016 the volume of revenue is predicted at level of 3,6 billion roubles, and in 2012 it is expected at a rate of 390 million roubles, that is all for 4 years will be shown more than ninefold growth. I expect that in 2011 the revenue will make about 180 million roubles at profitability on EBITDA at level about 5 %.

The main volume of revenue of ISKCh is brought now by services of a fence, allocation and storage of stem cells of an umbilical blood which according to the last reporting on RSBU in 9 months 2011 make 96 % from total amount. Another 4,3 % — the income of SPRS therapy service, in 2011 they will make about 5 %. Thus, 95 % from revenue bring project services Gemabank. In 2012 its share from this service will make about 8 %, that is about 31 million roubles, by 2016 it will decrease to 6,6 %.



Thus the number of the signed contracts at Gemabank increases. According to preliminary data, in their 2011 became more for 6,4 %, and now the company borrows on the Russian market of 56 % that also assumes increase in a share. Stability in this segment is very important now for the company as "Neovaskulgen's" sales which should begin in the 2nd quarter 2012, big levels hardly it is quickly reached, but in the long-term period this preparation becomes one of major factors for revenue growth.

So, in the current year a share of sale of this preparation in total amount of revenue will make about 9 %, that is 35 million roubles, and in four years it will make already 45 %. As "Neovaskulgen's" analogs will appear in Russia only in 3-5 years, the company has excellent prospects for receiving a big segment in the market in the future. Thus by 2016 a share in revenue of ISKCh from the project Gemabank will decrease to 15 % against 74 % which are expected in 2012. In new year sales according to Gemaskrin's project which following the results of a year will bring about 5 % from total sales were started, and to the 2016th this share will grow to 16 %. Besides, in 2012 sales according to several projects will begin. In particular, on SPRG therapy, a bankirovaniye of reproductive cages and fabrics and equipment distribution for cellular processing (Cytori).

Such diversification of a portfolio of projects is the main for stable development that will allow the company to increase considerably and financial results. If in 2012 profitability on EBITDA is expected at level of 5 %, that, thanks to active development of projects and successful