On 16 June 2011, in Riga, 53 Krustils Street, JSC Grindeks has unveiled UDCA active pharmaceutical ingredient’s manufacturing unit, which is one of the most significant investment projects of Grindeks. Manufacturing unit’s construction was started in 2009, after a multi-stage, long-term cooperation agreement on regular UDCA supply was concluded with the German pharmaceutical company “Marenis Pharma”. 6.34 million lats were invested in the construction of the new manufacturing unit, out of which 2.8 million lats was the co-financing by the European Regional Development Fund (ERDF).
Chairman of the Council of Grindeks Kirovs Lipmans: “Research, development, manufacture and sale of active pharmaceutical ingredients is one of the business directions of Grindeks, which in recent years, we have purposefully developed. Investment of 6.34 million lats in the new manufacturing unit is an important contribution not only to the company’s development, but also to the economy of Latvia. I believe and I see that the national uplift of Latvia can be achieved directly by industrial manufacturing and exports. The new manufacturing unit is a clear sign that the Latvian companies are competitive in the international arena.”
Chairman of the Board of Grindeks Janis Romanovskis: “Sustainable future of Grindeks is most closely related to the shareholders’ interest to invest in the company – to believe in the idea, and to dare to move towards the objective. Project of this magnitude is both a serious challenge, and international recognition, therefore, I wish to express my gratitude to our shareholders for their willingness to take risk; to the German cooperation partner “Marenis Pharma” for the confidence; and to congratulate the team of Grindeks, which has once again demonstrated its professional competence!”
In the manufacturing unit`s opening ceremony, the Chairman of the Council of Grindeks Kirovs Lipmans has stated that the cooperation between Grindeks and the state institutions of Latvia is becoming more and more successful and at the same time he has invited state officials to support local manufacturers.
In the opening ceremony of UDCA manufacturing unit of Grindeks has taken part the Prime Minister of the Republic of Latvia Valdis Dombrovskis: “Over the past few years, we have seen that exactly exporting enterprises have helped to overcome economic difficulties and restore growth. Now, when Latvia has exceeded pre-crisis export volumes, it is very important to be able to find new products and niches, new markets and directions for further export growth. The new manufacturing unit of Grindeks is a step in the right direction; and by attracting the co-financing by the EU funding of 2.8 million lats, the company will manage to break into new markets and significantly enhance the export potential.”
Product development and manufacturing process of UDCA is complex and time consuming. This is related to refining, hydration, replacement, crystallisation and other chemical transformation. Manufacturing processes in the new manufacturing unit are organized according to the ISO Quality Standard requirements that in general guarantee safety and quality of the produced active pharmaceutical ingredient. In the new plant, a modern automatic management system is installed, which controls the microclimate in the premises and the work of engineering systems, as well as regulates other processes of production and significantly saves energy. In its turn, convenient, safe, efficient and environmentally friendly production is provided by modern and powerful technological devices. UDCA manufacturing unit`s total area is 2300 square meters. In the new site, 35 new job positions are created.
The world market of UDCA active pharmaceutical ingredient is gradually increasing and now accounts for about 400t a year. In the world, there are five manufacturers of this active substance. In 2014 Grindeks plans to capture about 15% of UDCA active pharmaceutical ingredient’s world market. Grindeks has defined vertically integrated solutions as a strategic priority – to develop and manufacture active pharmaceutical ingredients by its own resources, from which then produce and sell the finished product. The next development step in the project of UDCA is the final dosage form development and implementation during the next two years.
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.
The Group consists of four subsidiary companies in Latvia, Estonia and Russia, as well representative offices in ten countries. Products of the company are exported to 50 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 and the Netherlands. JSC Grindeks shares are listed in the Official List of “Nasdaq OMX Riga”.
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Project “Creation of Ursodeoxycholic Acid manufacturing unit with the necessary infrastructure” is co-funded by the European Regional Development Fund