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Promomed is a Russian pharmaceutical company that develops and manufactures drugs for the treatment of obesity, diabetes, cancer and infectious diseases. Unlike pure generics manufacturers, it invests in its own developments. The shares trade under the ticker PRMD.
The company operates in two modes at once, and this defines its economics. Part of the portfolio consists of generic drugs that generate revenue today. Part consists of in-house developments, which require years of investment and bring in money only after registration.
The bet is on therapeutic areas with growing demand: drugs for weight loss and diabetes treatment are one of the fastest-growing segments of global pharmaceuticals. Success here could change the scale of the company, while failure in research could wipe out the value of the years invested.
Production is the company's own, in Mordovia, which reduces dependence on contract manufacturing sites and gives control over quality and production timelines.
Drugs for diabetes treatment and weight loss — a fast-growing segment.
Anticancer drugs, including those for government programmes.
Antiviral and antibacterial medicines.
In-house research programmes and the registration of new drugs.
Strengths and weaknesses describe the business itself. Opportunities and threats describe what may happen around it.
It develops and manufactures medicines: for the treatment of diabetes and obesity, cancer and infectious diseases. Production is located in Mordovia.
An original drug is created from scratch: the molecule is discovered, tested and registered, which takes years and a great deal of money, but in return it is protected by a patent. A generic reproduces an already known active ingredient once that protection has expired — it is cheaper both to develop and to buy.
Because a significant share of research never reaches registration: a drug may fail to confirm its efficacy or safety. All the years and funds invested in it are then not recovered.