REGARDING THE MEMORANDUM BETWEEN SK-PHARMACY LLP AND KAZAKSTAN KHALKYNA PF

As a result of the public outcry associated with the supply of medicines for children with orphan diseases, SK-Pharmacy deeply shares the experiences of patients and takes measures to resolve the issue.

In this regard, it is worth mentioning that SK-Pharmacy is the Single Distributor for the procurement, storage and transportation of medicines and medical devices within the guaranteed volume of free medical care (GVFMC) and in the system of compulsory social health insurance (SCSHI).

Thus, the legislation regulating activities and the Company's Charter do not provide for the storage and transportation of medicines for charitable organizations.

However, realizing and showing social responsibility, SK-Pharmacy became a member of the Memorandum as part of the provision of services for medicines procured at the expense of the Kazakhstan Khalkyna PF.

At the same time, within the framework of the Memorandum, SK-Pharmacy stores and transports medicines to all regions of the country free of charge, at its own expense.

To date, 4 agreements have been concluded within the framework of the Memorandum, which were executed by SK-Pharmacy in full.

Another 3 draft contracts are in the process of being coordinated with the Kazakhstan Khalkyna PF.

On October 11, 2022, SK-Pharmacy was included in the register of subjects of special law by order No. 273/NK of the Agency for the Protection and Development of Competition of the Republic of Kazakhstan.

That is, according to the specified order, subjects of special law are prohibited from engaging in other types of activities that are not provided by the legislation of the Republic of Kazakhstan.

In turn, SK-Pharmacy sent a notice of termination of the Memorandum to the Kazakhstan Khalkyna Public Foundation in order to comply with the legislation in the field of protection of the competitive environment.

Considering that the agreements concluded under the Memorandum are socially significant and that the lives of patients depend on them, SK-Pharmacy is working with the Agency for the Protection and Development of Competition of the Republic of Kazakhstan on the completion of all joint projects with the Kazakhstan Khalkyna public foundation by the end of this year.

Thus, the remaining 3 drug supply projects will be implemented in full. SK-Pharmacy will store and transport medicines procured under the Memorandum to all regions of the country.