Today, on 24 November, the financial statements of the JSC Grindeks on the first nine months of 2011, submitted to “Nasdaq OMX Riga”, indicate that the Turnover of the Group amounted to 48.9 million lats in the first nine months of 2011, which is by 2 million lats or 4.3% more than during the first nine months of 2010. In its turn, net profit of the Group, related to the shareholders of the holding company, amounted to 5.85 million lats in the accounting period, which is by 0.65 million lats or 12.5% more in comparison with the first nine months of 2010. In the first nine months of 2011, gross profit margin of the Group was 61.5%, whereas, net profit margin comprised 12%. Products of the Group, manufactured during the accounting period, were exported to 48 states worldwide for the total amount of 46.1 million lats.

In the first nine months of 2011, sales volume of the final dosage forms of Grindeks was 41.7 million lats, which is by 0.8 million lats or 2% more than in the comparable accounting period of 2010. The main markets for the final dosage forms are Russia, other CIS countries, Georgia and the Baltic States. The most demanded products of Grindeks are the brand product Mildronate®, ointments Capsicam® and Viprosal B®. In the first nine months of 2011, sales volume in Russia, other CIS countries and Georgia was 35.5 million lats and remained at the same level as in the same period last year. In its turn, sales volume of the final dosage forms in the Baltic States and other European countries reached 6.2 million lats, which is by 1 million lats or 19.2% more than in the first nine months of 2010.

In the first nine months of 2011, sales of the active pharmaceutical ingredients reached 7.2 million lats, which is by 1.2 million lats or 20% more than in the first nine months of 2010. The main active pharmaceutical ingredient markets for Grindeks are Germany, the Netherlands, Japan and the USA. The most demanded pharmaceutical ingredients are: the UDCA (ursodeoxycholic acid) and oxitocine.

Grindeks Member of the Board, Finance and Administrative Director Vadims Rabsha: “In the nine months of 2011, the active pharmaceutical ingredients business has brought the highest sales growth, increased by 20%. Also encouraging are the company’s sales results in the Baltic States and other European countries. During the first nine months, sales in company’s major markets have remained at previous level, while preliminary sales figures of October and November show a significant increase that in total will also show the annual growth in these markets.”

Non-audited consolidated financial statements of Grindeks – 3rd quarter of 2011 (126 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 16 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%, “Skandinaviska Enskilda Banken” – 12.42%, “AB.LV Private Equity fund 2010” – 11.38%, “Swedbank” AS Clients Account – 6.87%.

Further information:
Laila Klavina
Head of the Communications Department, JSC Grindeks
Phones: (+371) 67083370, (+371) 29256012
Fax: (+371) 67083505
E-mail: laila.klavina@grindeks.lv