Today, on 26 February, JSC “Grindeks” has submitted the non-audited
consolidated financial statements on 2009 to “NASDAQ OMX Riga”. Non-audited
financial results confirm that the turnover of the “Grindeks” Group amounted to
53.6 million lats in 2009, which is by 8.5 million lats or 13.7% less than in
2008. In its turn, net profit related to the shareholders of the holding
company, amounted to 3.7 million lats in the accounting period, which is by
58.9% less in comparison with 2008.
“Grindeks” Group's sales volume of the final dosage forms was 48.2 million lats
in 2009, which is by 15.2 % less compared with 2008. In 2009 the sales volume
of final dosage forms to the CIS countries, including Russia, which are the
main markets of the final dosage forms, comprised 41.9 million lats.
In 2009 the biggest decrease of the sales of final dosage forms was observed in
Belarus, Kazakhstan and Russia.
In its turn, the turnover in the Baltic States and in other European countries
was 6.3 million lats in 2009, which is by 2.2% more than in 2008. Export of
active pharmaceutical ingredients amounted to 5.3 million lats in 2009, which
is by 3.9% more than in 2008.
Main factor, which essentially influenced the turnover of the Group and the
decrease of the profit, comparing to 2008, was the global economic recession,
which stimulated overall decrease of consumer purchasing power and thereby also
the decline in demand for both: “Grindeks” final dosage forms and active
pharmaceutical ingredients in the veterinary product market. Also the results
of the Group were influenced by devaluation of the national currency in Russia
and several other CIS countries. Additional load was caused by changing the
rules of the pharmaceutical market last year - the tendency of distributors to
decrease the medical supplies in storehouses and to postpone the previously
agreed purchasing terms.
“Grindeks” Chairman of the Board Janis Romanovskis: “Reacting to the global
economic and the overall situation of the market, we have purposefully
strengthened the marketing and sales activities and after the less lucrative
summer months, typical for the pharmaceutical business, in the final quarter of
the year, we achieved positive increase of the sales volume. This positive
tendency is still continuing this year. Yet we will continue reducing the risks
of the business activities, optimizing manufacturing and resources intensively.
“Grindeks” has always looked to the future in the long term, therefore we will
put the special attention to introduction of new products, entrance into new
markets and increase of production capacity.”
In 2009 “Grindeks” was continuing huge investment projects. Thus in the
beginning of the year, to increase productivity of the company and the
production capacity a new final dosage forms plant was opened. This project was
performed within 2 years and 9.1 million lats were invested in total. Taking
care of the protection of environment, “Grindeks” opened a new industrial
sewage purification plant, where the principle of biological purification is
implemented and the most modern technologies installed. Principle of biological
purification is the most modern and environmentally friendly way of sewage
purification in chemical industry. In total, 2.5 million lats were invested in
the project. In summer “Grindeks” started manufacturing of an active
pharmaceutical ingredient - ursodeoxycholic acid (UDCA) and started
construction of a new manufacturing unit. The construction will be completed in
1.5 - 2 years and it is planned to invest almost 6 million lats. In 2009
“Grindeks” continued and in 2010 successfully finished an international
clinical trial on the influence of the brand product Mildronate® on the
treatment of angina. Results of the just-finished multinational clinical trial
once more approve effectiveness and the high safety of Mildronate® in the
treatment of angina in combination with the standard therapy. Results obtained
will promote sales and registration of Mildronate® in new markets. “Grindeks”
altogether invested 1.6 million lats in this research.
“Grindeks” Chairman of the Board Janis Romanovskis: ““Grindeks” recognizes that
the saving of resources and reduction of expenses will continue having a high
priority also in the next years. However it should not influence the
development of the company! I am sure that we will knowingly balance needs of
the company, as well as opportunities and challenges for the achievement of the
business goals.”
On “Grindeks”
“Grindeks” is the leading pharmaceutical company in the Baltic states. Its main
fields of action are: research, development, manufacturing and sale of original
products, generics and active pharmaceutical ingredients. “Grindeks”
specializes in the heart and cardiovascular, CNS and anti-cancer medication
therapeutic groups.
Group consists of four subsidiary companies in Latvia, Estonia and Russia, as
well representatives and representative offices in fourteen countries. Products
of the company are exported to more than 40 countries and its export comprises
more than 96% of the total turnover. The main markets are: the Baltic States,
Russia and other CIS countries, Japan, USA. JSC “Grindeks” shares are listed in
the Official List of “NASDAQ OMX Riga”.
Further information:
Laila Kļaviņa
Head of the Communications Department
JSC “Grindeks”
Phones: (+371) 67083370, (+371) 29256012
Fax: (+371) 67083505
e-mail: laila.klavina@grindeks.lv
