Today, on 24 August, the financial statements of the JSC Grindeks on the first half-year 2012, submitted to “Nasdaq OMX Riga”, indicate that the turnover of the Group of Grindeks during the first half-year of 2012 amounted to 34.2 million lats, which is by 1.5 million lats or 4.6% more than in the first half-year of 2011. Whereas, the Group’s net profit, related to the shareholders of the holding company, during the first half-year of 2012 was 3.7 million lats that comparing to the first half-year of 2011 has decreased by 0.6 million lats or 14%. The indicators of the turnover and profit have been affected by the business of active pharmaceutical ingredients, where a part of clients have reviewed their manufacturing plans and postponed the deliveries to the second half of the year. The gross profit margin in the first half-year of 2012 was 56.7%, whereas, the net profit margin was 10.8%. In the first half year of 2012 the products manufactured by the Group were exported to 46 countries all over the world for the total amount of 32.3 million lats.

The sales volume of the final dosage forms of Grindeks in the first half-year of 2012 was 31.7 million lats and has increased comparing to the same period of the previous year by 3.9 million lats or 14%. The main markets of the final dosage forms are Russia, other CIS countries, Georgia and the Baltic States. The sales amount of Russia, other CIS countries and Georgia in the first half-year of 2012 was 27.3 million lats, which is by 3.6 million lats or 15.2% more than in the respective period of 2011. Whereas, the sales amount of final dosage forms in the Baltic States and other European countries reached 4.4 million lats, which is by 0.4 million lats or 10% more than in the first half-year of 2011.

In the first half-year of 2012 the increase of demand of final dosage forms is explainable by the effective marketing and sales activities. In comparison with the first half of the previous year, medication sales in the main market Russia, this accounts more than half of the total turnover of the final dosage forms, increased by 24%. Whereas, in one of the biggest markets Kazakhstan – by 9%. Within the last two years Grindeks is purposefully acquiring market possibilities in Scandinavia. In the first half-year of 2012 the sales of medication in these countries amounted to 133.2 thousand lats, which is by 18.5 thousand lats or 16.1% more than in the first half-year of 2011. This is a significant turn in the overall final dosage form strategy of Grindeks, for the gradual acquiring possibilities of Europe’s Northern and Western countries.

During this half year the total amount of 14.19 million packages were sold, which is by 1.13 million packages or 8.7% more than in the same period of 2011. The most demanded products of Grindeks in the first half-year of 2012– the brand product Mildronate®, ointments – Capsicam® and Viprosal B®, central nervous system affecting medications – Somnols® and Cyclodol®, original anti-cancer agent Ftorafur® and natural product Apilak-Grindeks. In particular, the remarkable sales increase was for products – Somnols® by 25.5% and Ftorafur® by 31.9%.

The sales of active pharmaceutical ingredients in the first half-year of 2012 reached 2.4 million lats, which is by 2.5 million lats or 51% less than in the first half-year of 2011. Part of the clients of active pharmaceutical ingredients has reviewed their manufacturing plans for 2012, postponing the deliveries to the second half of the year. Main export markets of the Grindeks active pharmaceutical ingredients are Germany, the Netherlands, Japan and the U.S. The most demanded active pharmaceutical ingredients of Grindeks are: zopiclone, oxytocin, ftorafur (tegafurum), UDCA (ursodeoxycholic acid), as well as the veterinary products – detomidine and medetomidine. Overall Grindeksproduces 22 active pharmaceutical ingredients.

Chairman of the Board of JSC Grindeks Juris Bundulis: “Our operating results during the first half-year of 2012 indicate, that defined goals and plans are fulfilled, and there are grounds to consider that our business in the second half-year also will be successful. Because of the fierce competition, there are not that many pharmaceutical companies that can justifiably show 14% increase of final dosage forms – these indicators are really gratifying, as it shows the increasing demand and number of packages sold. There are many countries, for example, Bulgaria, Turkmenistan, Armenia, Hungary and other countries, where our growth is measurable in hundreds of percents, however more significant is our reputation and long term co-operation. Our performance in Russia, which corresponds to 51% of total final dosage forms market, is very significant – growth of 24%. I particularly want to highlight our achievements in Scandinavia, where the final dosage forms export has began last year. This is a meaningful turning point for the company’s market strategy and a reason of using our opportunities in the Europe’s Northern and Western countries even more intensively. Grindeks is a development-oriented company and one of the cornerstones of its operations is a consistent, long-term co-operation with patients, clients and partners. We are happy for our success and ability to compete with large foreign companies on equivalent conditions also in Scandinavian countries. In the first half-year, comparing to the previous year, the overall picture shows some corrections to the active pharmaceutical ingredient business, however we have reasons to believe that within the next couple of months this picture will positively change. As there is a patient in the centre of Grindeks activities, the company will continue its operations, recognizing society’s needs and the health care situation.”

Financial statement of Grindeks – first half-year of 2012 (119 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 representative offices in ten 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 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. In 2010 The Ministry of Economics of Republic of Latvia and Investment and Development Agency of Latvia awarded Grindeks as the most export potential company of Latvia.
During the last years the company realized many considerable investment projects in purpose to increase production capacity and develop infrastructure and invested 32.7 million lats within five years.

JSC Grindeks shares are listed in 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) – 10.53%, “Swedbank” AS Clients Account (nominal holder) – 8.79%.

More information about the company –

Further information:

Laila Kļaviņa
Head of the Communications Department, JSC Grindeks
Phones: (+371) 67083370, (+371) 29256012
Fax: (+371) 67083505