On 28 February, JSC Grindeks submitted the non-audited consolidated financial statements for 2012 to “Nasdaq OMX Riga”. Non-audited financial results show the turnover of the Grindeks Group reached 82.7 million lats in 2012, which is 13.1 million lats or 18.8% more than in 2011. The net profit related to the shareholders of the holding company rose to 9.6 million lats in 2012, which, in comparison to 2011, is an increase of 2.9 million lats or 43.3%. In 2012, the gross profit margin was 61.8%, whereas, net profit margin comprised 11.6%. Products of the Group, manufactured in 2012, were exported to 55 countries worldwide for the total amount of 78.2 million lats, which is an increase of 12.6 million lats or 19.2% compared to the previous year.

Sales turnover of the final dosage forms of Grindeks in 2012 was 69.9 million lats and has increased by 9.6 million lats or 15.9% compared to 2011. The main markets for the final dosage forms are Russia, other CIS countries, Georgia and the Baltic States. Sales in Russia, other CIS countries and Georgia reached 60.3 million lats in 2012, which is by 8.5 million lats or 16.4% more than in 2011. Turnover of the final dosage forms in the Baltic States and other European countries reached 9.6 million lats, which is by 1 million lats or 11.6% more than in 2011. The Grindeks products with the highest demand in 2012 were the brand product Mildronate® (increase by 12.9% in 2012, comparing to 2011)), ointments – Capsicam® (increase by 3.8%), Viprosal B® (increase by 21.8%), central nervous system medications – Somnols® (increase by 26%), Cyclodol® (increase by 20.3%), the original anti-cancer medication Ftorafur® (increase by 17.6%) and natural product Apilak- Grindeks(increase by 26.7%).

In 2012, sales of the active pharmaceutical ingredients reached 12.7 million lats, which is 3.5 million lats or 38% more compared to the previous year. The main active pharmaceutical ingredient export markets for Grindeks are Russia, the Netherlands, Japan, Germany and Ireland. The most demanded pharmaceutical ingredients of Grindeks are: zopiclone, oxytocin, ftorafur (tegafur), UDCA (ursodeoxycholic acid), droperidol as well as the veterinary products – detomidine, medetomidine, atipamezole and pimobendane. Grindeks produces an overall of 22 different active pharmaceutical ingredients. In 2012, the zopiclone of Grindeks share of the world market was 25%, while the oxytocines’ share of the world market was 30%. Grindeks veterinary substances’ market share in the EU reached 32% of the European Union market.

Chairman of the Board of JSC Grindeks Juris Bundulis: “Grindeks has successfully completed the year 2012, showing that we are able to provide additional opportunities for development, achieving significant sales growth for both final dosage forms and active pharmaceutical ingredients businesses. I have always emphasized that our competitive advantage is the flexible response to patients’ needs and market demand. This, in comparison to 2011, has helped us to increase our turnover by almost 19%. Grindeks is the company oriented towards long-term development, therefore I am pleased with the company’s record-high profit of 9.6 million lats. Following the current policy of shareholders, we will have an opportunity to invest even more into the research of patients’ needs, new product development and overall sustainability of the company.”

Financial statement of Grindeks 2012 (154 KB)

About 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. The Group of Grindeks consists of four subsidiary companies in Latvia, Estonia and Russia, as well as representative offices in 11 countries.

Grindeks specializes in the heart and cardiovascular, CNS and anti-cancer medication therapeutic groups. A range of products covers a successful combination of original products and generics, with the original products Mildronate® and Ftorafur® and more than 100 forms of effective and safe generics included therein. Currently Grindeks produces 22 active pharmaceutical ingredients.

Products of the company are exported to 55 countries and its export comprises more than 95% of the total turnover. The main markets are: Russia and other CIS countries, the Baltic States, Germany, the Netherlands, Japan and the U.S.

To increase production capacity and develop infrastructure, since 2002 the company has accomplished many significant investment projects, investing 45.6 million lats over the years.

JSC Grindeks shares are listed on the Official List of “Nasdaq OMX Riga”. Major shareholders of JSC Grindeks are Kirovs Lipmans – 33.29%, Anna Lipmane – 16.69%, “AB.LV Private Equity fund 2010” – 11.38%, “Skandinaviska Enskilda Banken” (nominal holder) – 10.22%, “Swedbank” AS Clients Account (nominal holder) – 8.71%.

More information about the company – www.grindeks.lv/en/

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