Grindeks Group’s record high profit and turnover in the first nine months has been achieved due to a significant increase in demand for cardiovascular and central nervous system products. Rapid growth of sales was also reached in hospital segment medicines, which are offered by JSC Grindeks subsidiary company JSC Kalceks.
During the first nine months of 2021, the Group exported its production to 97 countries for a total amount of 160 million euros.
Ph. D. Juris Hmelnickis, Chairman of the Board of JSC Grindeks: “In the first nine months of 2021, the Grindeks Group continued its development and growth with confidence, reaching historically highest profit and turnover figures. Our business strategy and the changes that we put in place are already creating results. I am pleased that our employees are united and able to adapt quickly to the changing and difficult situation in Latvia and the world, providing patients with the necessary medicines. I have no doubt that the work done together so far is an indicator of excellence of Grindeks. We will only continue our growth and we will not stop at what has already been achieved. I believe that every goal for Grindeks Group is achievable.”
The Group’s sales of final dosage forms in the first nine months of 2021 totaled 160.4 million euros and compared to the first nine months of 2020 increased by 31.1 million euros or 24%.
In the first nine months of 2021, sales of final dosage form products in the European Union and other countries amounted to 85.2 million euros, which is 20.7 million euros or 32% more than in the first nine months of 2020. Sales in Portugal increased 41 times in the first nine months of 2021 compared to the first nine months of 2020, in the Netherlands 12 times, in the United Arab Emirates 10 times, in Bulgaria 4 times, in Poland 3 times, in Great Britain by 60%, in Austria by 51% and in Australia by 43%.
Sales in Russia, other CIS countries and Georgia amounted to 75.1 million euros in the first nine months of 2021, which is 12.8 million million or 20% more than in the first nine months of 2020. Compared to the first nine months of 2020, during the first nine months of 2021 sales in Kyrgyzstan increased by 48%, in Moldova by 39%, in Belarus by 36%, in Azerbaijan by 33% and in Georgia by 26%.
Grindeks product portfolio includes modern medicines for treatment of cardiovascular, central nervous systems, oncological diseases and diabetes, while JSC “Kalceks” offers medicines for the hospital segment. There are currently 64 new JSC Grindeks and 42 new JSC Kalceks medicines in development.
The production of active pharmaceutical ingredients is also very important for the Grindeks Group, which is also one of the Group’s significant advantages in the pharmaceutical sector. The company currently produces 25 active pharmaceutical ingredients. This segment increases independence from raw material producers, so the company is developing 36 new active pharmaceuticals. The availability of active pharmaceuticals means the possibility of more efficient production of finished final dosage forms within the group. The largest export markets of Grindeks active pharmaceutical ingredients are European Union countries, the U.S., Japan and Canada.
In the first nine months of 2021, JSC Kalceks achieved suberb results and their sales grew rapidly, increasing both the number of export countries and expanding its product portfolio. In the first nine months of 2021, products from JSC Kalceks were sold for 50.8 million euros, which is 19.1 million euros or 60% more than in the first nine months of 2020. JSC Kalceks products were exported to 75 countries in the first nine months of 2021, and the main ones were the Netherlands, Mexico, Great Britain, Poland and Portugal.
Kirovs Lipmans, Chairman of the Council of JSC Grindeks: “I greatly appreciate the work and enthusiasm of Grindeks Group employees. The Group is developing and it is focused on international cooperation, which contributes to our achievements and helps to reach our goals. I am gratified that our patients in many countries of the world receive the necessary medicines. In thinking about the future of the Group, I know that there is always a need to make smart investments that improve infrastructure, create an even more modern working environment and increase the production capacity of the company. Such investments are important for global competition to ensure that our pace of development is higher than the average shown by other pharmaceutical companies.”
In order not to stop at the results already achieved and to continue the gradual and sustainable growth of the Group in the long term, Grindeks in the first nine months of the year paid particular attention to the improvement of manufacturing infrastructure, which also includes the purchase of new manufacturing equipment, as important is building a new manufacturing laboratory for final dosage forms.
The contract for the new plant project has been signed this year and the area development and improvement work has been done. The new plant will be built in Latvia, Riga, Asotes Street 12, in several phases and will include complex manufacturing processes for active pharmaceutical ingredients and modern technological equipment. It will be the largest pharmaceutical plant in the Baltic region with automated and energy-efficient solutions.
About Grindeks Group
Grindeks is an international pharmaceutical Group, and its main activities are research, development, production and sale of original products, generic medicines and active pharmaceutical ingredients.
The Grindeks Group consists of JSC Grindeks and its companies: JSC Kalceks in Latvia, JSC Tallinn Pharmaceutical Plant in Estonia, HBM Pharma s.r.o. in Slovakia, LLC Grindeks Rus in Russia and LLC Namu Apsaimniekosanas projekti in Latvia. Representative offices have been opened in 11 countries.
The main therapeutic groups of Grindeks are cardiovascular, central nervous system, anti-cancer and diabetes medicines. “Kalceks” specializes in medicines for the hospital segment. The product range consists of the original products Mildronate® (meldonium) and Ftorafur® (tegafur), generics as well as active pharmaceutical ingredients.
In 2020 the Group exported its products to 93 countries. Major Grindeks markets are the European Union countries, Russia and other CIS countries, Israel, Canada and the USA.