Russian Ministry of Health Includes R-Farm Drug Developed with VEB.RF’s Support to COVID-19 Treatment Guidelines
On 3 June 2020, the Russian Ministry of Health included R-Farm’s new drug, Artlegia (olokizumab), to its COVID-19 Prevention, Diagnosis, and Treatment Provisional Guidelines. Artlegia is the first Russian original drug included to the guidelines of the Russian Ministry of Health.
This Russian drug is one of the first drugs in the world proven to be effective in treatment of the cytokine storm, the leading cause of death among COVID-19 patients.
“The clinical data from large-scale international clinical trials and ongoing efficiency studies involving COVID-19 patients enabled the Russian Health Ministry to come to a conclusion that Artlegia may be used to treat COVID-19. The drug inhibits the cytokine storm, the leading cause of death among COVID-19 patients. A subcutaneous injection of Artlegia reduces inflammation in a matter of a couple of hours. By incorporating olokizumab to the Guidelines, the Ministry of Health makes it more accessible to Russian in-patient hospitals, which means a new efficient tool for the health professionals to treat the patients,” R-Pharm CEO Vassily Ignatyev said.
On 3 April 2020, the Russian Ministry of Health approved clinical trials to test effectiveness and safety of Artlegia (olokizumab) in treating COVID-19 patients.
The trials are ongoing in 17 in-patient hospitals of Moscow, Saint Petersburg, Yaroslavl, Nizhni Novgorod, including Sklifosovsky Research Institute for Emergency Medicine (Moscow), Botkin Clinical Infectious Diseases Hospital (Saint Petersburg), Moscow City Clinical Hospital 52, Yaroslavl Regional Clinical Hospital for War Veterans - International Center for the Elderly “Healthy Longevity”, Privolzhsky Research Medical University (Nizhni Novgorod) etc.
230 patients are participating in the clinical trials. Artlegia (olokizumab) was registered in Russia in May 2020 for treatment of rheumatoid arthritis. The drug is manufactured by R-Pharm in Yaroslavl. The first batches of Artlegia were delivered to Russian health care facilities.
VEB.RF published its interim condensed consolidated IFRS financial statements as at March 31, 2020
VEB.RF published its interim condensed consolidated financial statements under IFRS as at March 31, 2020.
VEB.RF Group’s key financials for Q1 2020 are as follows:
- As at March 31, 2020 the Group’s assets increased by 6.9% (RUB +218.8 bn) as compared to the beginning of the year, reaching RUB 3,396.2 bn. The assets dynamics was primarily affected by foreign currency revaluation.
- Loans to customers account for 35.9% of the Group’s total assets. As compared to 2019 year end loan portfolio less allowance for impairment increased by 7.9% (RUB +89.1 bn) reaching RUB 1,217.9 bn.
The weakening of the Russian rouble also had a significant impact on other indicators and the Group’s result for Q1 2020.
- Total liabilities of the Group as at March 31, 2020 went up by 10.2% (RUB +280.5 bn) to reach RUB 3,030.3 bn. The rouble’s depreciation also stipulated the increase in liabilities (debt securities issued, amounts due to banks and amounts due to the Russian Government and the Bank of Russia) in foreign currency.
- Net operating income for Q1 2020 totaled RUB 37.9 bn, exceeding that for the same period in 2019 by 0.5%. In the operating income structure, net interest income amounted to RUB 0.8 bn, net commission income reached RUB 2.3 bn, non-interest income amounted to RUB 34.8 bn. Interest income decrease is accounted for inter alia by the Bank of Russia key rate cut and the specifics of interest rate calculation on impaired loans in accordance with IFRS.
- In Q1 2020 VEB.RF Group recognized a loss of RUB 19.8 bn. The negative result of the Group was mostly driven by creating provisions including those in foreign currency.
- The Group’s equity in Q1 2020 went down by RUB 61.7 bn (RUB -14.4%) and as at March 31, 2020 amounted to RUB 365.9 bn. Equity decrease was affected by data transformation of the Group’s companies, that prepare their statements in foreign currency, as well as by the financial result for Q1 2020.
- VEB.RF’s capital adequacy ratio (according to RAS) was 12.1% as at 01.04.2020 (13.6% as at 01.01.2020).
- The impact of COVID-19 pandemic expansion that already emerged in Q1 2020 can affect the future results of the Group. However, a comfortable liquidity cushion (cash and cash equivalents account for over 17% of total assets as at March 31, 2020) and equity allow for a further implementation of development institution’s functions as planned.