Today, on 28 April, JSC Grindeks has submitted the audited consolidated financial statements on 2009 to “Nasdaq OMX Riga”. 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 3.6 million lats in the accounting period, which is by 60.0% 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 95% 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