MD Medical Group completes acquisition of hospital in Moscow

17 July 2023 – MD Medical Group Investments Plc (“MD Medical Group”, “MDMG”, the “Group” or the “Company” – LSE MOEX: MDMG), a leading Russian private healthcare provider, announces that it has completed the acquisition of ready for service hospital in Moscow.

The new seven-story medical centre with a total area of 8,755 sq. m, acquired under the transaction, is located at Michurinsky Prospekt, 31. The total investment in the project is estimated at 2,840 million rubles. The transaction is financed from the Group’s own funds.

Based on the existing facilities of the acquired centre, in the second half of 2023 the Company plans to launch a new multidisciplinary hospital MD Group Michurinsky. The hospital will be additionally fitted with world-class medical equipment produced by General Electric Healthcare and Fijifilm. The amount of additional investment in the project is estimated at 600 million rubles. The transaction amounted to 2,240 million rubles.

The new in-patient facility has 60 beds, including 10 in the emergency department and 6 in the operating room. The multidisciplinary centre has an annual capacity for up to 231,000 out-patient treatments and 1,200 IVF cycles. The new hospital will offer a wide range of services for the whole family, including the provision of medical care within the surgical and therapeutic in-patient facility, IVF, as well as functional diagnostics and outpatient treatment. Patient treatment will be carried out under the VHI program, as well as MHI.

Mark Kurtser, CEO at MDMG, said:

“We are pleased to complete the acquisition of the new hospital, marking another important milestone in the development of MD Medical Group. This transaction is fully in line with our strategy to solidify our position in Moscow and the Moscow Region and expand the Group's hospital segment. The acquisition of a new medical centre will materially increase the volume of medical care in Moscow, including due to MD Medical Group’s high standards of medical care, as well as favorable location of the hospital. We expect MD Group Michurinsky to greet first patients in the second half of 2023.”

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About MD Medical Group

MD Medical Group is a leading provider in the Russian private healthcare service market. The Company manages 49 modern healthcare facilities, including 10 hospitals and 39 out-patient clinics in 26 regions of Russia. In 2022, MD Medical Group's revenue amounted to RUB 25.2 bln while EBITDA amounted to RUB 7.9 bln. The Company's GDRs are traded on Moscow Exchange (MOEX: MDMG).