Today, on 25 February, JSC Grindeks has submitted the non-audited consolidated financial statements for 2010 to “Nasdaq OMX Riga”. Non-audited financial results show that the turnover of the Group of Grindeks amounted to 65.1 million lats in 2010, which is by 11.5 million lats or 21.5% more than in 2009. In its turn, net profit related to the shareholders of the holding company amounted to 7.1 million lats in the reporting period, which is by 3.5 million lats more in comparison with 2009 and has increased by 97.2%.

In 2010, gross profit margin of the Group was 53.9%, whereas, net profit margin comprised 10.9%. Products of the Group, manufactured during the reporting period, were exported to 50 countries worldwide for the total amount of 61.7 million lats, which is by 10.9 million lats or 21.5% more than in the previous year.

In 2010, ROE was 13 %; ROA was 11.3 %; liquidity was 2.54.

In 2010, the sales volume of the final dosage forms of Grindeks amounted to 57.7 million lats, which is by 9.5 million lats or 19.7% more than in 2009. In 2010, the amount of Grindeks final dosage forms’ export to the main markets – Russia, other CIS countries and Georgia – comprised 50.2 million lats, which is by 8.3 million lats or 19.8% more than in 2009. In its turn, turnover of the final dosage forms to the Baltic States and other European countries reached 7.5 million lats, which is by 1.2 million lats or 19% more than in 2009.

Sales of active pharmaceutical ingredients produced by the Group amounted to 7.4 million lats in 2010, which is by 2 million lats or 37% more than in 2009. Such an outcome is achieved by the increase in demand of the active pharmaceutical ingredient – ursodeoxycholic acid (UDCA), introduced in the manufacture in 2009. With the increasing market demand, also grew sales of the active pharmaceutical ingredient zopiclone, manufactured by Grindeks. Overall Grindeks realized 17 active pharmaceutical ingredients. In 2010, the main export markets for active pharmaceutical ingredients of Grindeks were Germany and the Netherlands.

Chairman of the Board of Grindeks Janis Romanovskis: “The financial results of Grindeks for 2010 show a positive sales growth. Stable increases are recorded in realization of both the final dosage forms and the active pharmaceutical ingredients. Last year Grindeks successfully entered new markets for the finished medications – Eastern European countries, as well as expanded its offer range with new medications. To achieve even better results in the future, Grindeks continues to carefully analyze the economic and financial processes at important markets, and will thoughtfully implement the marketing and sales strategy.”

In 2010, Grindeks continued to implement the investment program. Investing 1.6 million lats, Grindeks finished the clinical trial on the influence of the brand product Mildronate® on the treatment of angina in 2010. Another huge project is the construction of new manufacturing unit for the active pharmaceutical ingredient – ursodeoxycholic acid (UDCA), which is planned to finish in the first half of 2011. It is planned to invest almost 6 million lats in the project, and for its realization Grindeks signed an agreement with Investment and Development Agency of Latvia on co-financing of 2.8 million lats from the European Regional Development Fund.

In 2010, Grindeks successfully passed 29 significant inspections and audits by state agencies of medicines, supervisory bodies of food supplement manufacturers from Latvia and other countries, clients, institutions of environmental protection. In its turn, specialists of Grindeks audited and participated in the technology implementation process in Lithuania, Germany and Slovakia.

Chairman of the Board of Grindeks Janis Romanovskis: “Grindeks is the company with the significant growth potential and excellent international reputation. One of our strongest advantages is the vertical integration, namely the ability to develop and manufacture active pharmaceutical ingredients by our own resources, from which then to produce and sell the finished medications. Targeted investments and the highest level infrastructure allow Grindeks to focus more on vertically integrated solutions.”

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. Product portfolio of Grindeks consists of original products, generics and active pharmaceutical ingredients. Grindeks specializes in the heart and cardiovascular, CNS and anti-cancer medication therapeutic groups.

Group of Grindeks consists of four subsidiary companies in Latvia, Estonia and Russia, as well representative offices in ten 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: Russia and other CIS countries, the Baltic States, Germany and the Netherlands. 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
laila.klavina@grindeks.lv