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HSCI GENETICO Center received RUB 300 mln from IDF

Moscow, 9 September 2016. PJSC HSCI – The Human Stem Cells Institute (“HSCI”, MOEX: ISKJ), one of Russia’s leading biotech companies, announced that its subsidiary- Genetico LLC (Center of Genetics and Reproductive Medicine GENETICO LLC (hereinafter, “Genetico® Center”), has received a loan in the amount of RUB 300 million from the Russian State Industrial Development Fund (IDF) for the project to implement state-of-the-art genetic diagnostic technologies.

The total cost of the project amounts to RUB 600 million, of which RUB 150 million have already been invested by HSCI over the past 3 years, RUB 300 million are provided by IDF, while the rest RUB 150 million are to be invested by GENETICO LLC shareholders.

Under this project, on the basis of Genetico® Center, HSCI will organize production of genetic tests on the base of DNA arrays (microfluidic) and next-generation sequencing (NGS) for non-invasive prenatal testing of fetal chromosome abnormalities and early detection and prevention of inherited diseases, including identification of genetic predisposition to familial cancers as well as selection of targeted therapy.

Genetico® Center will set up new laboratories and become one of the best European centers of genetic diagnostics furnished with state of the art equipment and unique technology. This will enable Russia to export genetic testing services in neighboring countries and Europe. With high quality of DNA tests, Genetico® will reduce the costs for imported components of the tests to make them more affordable for customers and proper for inclusion in the CHI state program.

Artur Isaev, General Director of HSCI, commented: "Genetico center is focused on the introduction of genetic testing innovative technologies into practical healthcare. We are grateful to Industry Development Fund and the Ministry of Industry and Trade of Russia for support and funding. The Company has raised a long-term loan with a 5% P.A. interest rate that gives us more opportunities to promote new technologies in genetic diagnostics. Our objective is to introduce new methods of diagnosis, create advanced tools of prevention, prediction, early detection and treatment of inherited, oncological and other severe diseases for doctors. Reduced interest rate, technology transfer and localization of production will make our genetic diagnostic services more affordable for patients. At the same time, this create a good upside as for the company value, the company has become more attractive for investors."

Reference Information:

Technologies and Genetico® DNA tests are aimed at early identification, prediction and prophylactic treatment of genetic disorders, including reproductive system diseases. In medical practice the use of such techniques will increase the birth-rate, decrease the number of birth defects, reduce child mortality and bring down the level of morbidity rate.

One of the implemented technologies is non-invasive prenatal testing of fetal chromosome aberrations using maternal venous blood (can be performed starting from the 10th week of pregnancy to cover the most common chromosome abnormalities leading to the risk of delivering the child with Down syndrome, Klinefelter syndrome, Patau syndrome, e.g.). This is the most effective and safe technology today that improves the accuracy of diagnosis of chromosomal abnormalities by more than 100 times as compared with conventional methods of prenatal screening.

Oncotests that have been developed by Genetico® Center enable, on the one hand – to identify the risks of oncological diseases and start prevention and timely treatment; on the other hand – to help doctors to choose a better therapy based on individual genetic characteristics of the patient and the genetics of tumor.

At the moment, we now over 6,000 genetic diseases, more than 25% of which cannot be diagnosed by standard methods. Diagnosis using Genetico® tests will allow to search for mutations in almost all genes responsible for inherited disorders, and to carry out molecular diagnostics at more affordable prices with a significant increase of number of genes to be analyzed.

Full Version of the Press Release

12 September 2016