According to the non-audited data, last year the net profit of Grindeks, largest producer of medicines in Latvia, reached the level of 1.3 millions Ls, which is the highest profit indicator in the history of Grindeks. The Company’s turnover last year amounted to 18.76 million Ls, which is by 18.6% more than in 2002.

In 2004 the Company plans to sell the products for 24 million Ls. The positive financial indicators of the Company in 2003 constantly promoted the up-going trend of the rate of Grindeks shares and rise in the share price – one Grindeks share at the beginning of last year at the Riga Stock Exchange cost 0.55 Ls, but at the end of the year its price reached 0.92 Ls.

Janis Romanovskis, Financial Director of Grindeks, describes the Company’s performance in 2003 as successful: “On the whole the previous year in the development of Grindeks must be evaluated as positive and stable, which demonstrates a successfully selected strategy for long-term development. This strategy is based on formation of a Baltic pharmaceutical holding company, thus uniting and consolidating the capital of several companies, which enables us to optimise the costs and make investments into development of directions with good prospects, for example, manufacturing facility of active substances (active pharmaceutical ingredients) and our subsidiary –Tallinn Pharmaceutical Plant.”

The non-audited profit in 2003 of Tallinn Pharmaceutical Plant (TPP), subsidiary of Grindeks, which is included into the holding company, amounted to 10 million EEK (430 000Ls). Last year the Tallinn Plant was specialised for manufacture of ointments according to the GMP principles.

The sales volume of final dosage medicines, which constitutes 72.7% of the total turnover of Grindeks, in comparison with 2003 last year increased by 18%. It is mainly due to the growth in sales of the cardiovascular preparation Mildronate in Russian and CIS markets. The increase was furthered also by expansion of existing markets, introducing new products and entry into new markets. For example, in Polish market the advancing of Osteoplus, original product of Grindeks, has been started, but for Latvian consumers the Company at the end of the year began to offer new natural product Herbastress.

Significant investments in 2003 have been made in the business field of active substances (active pharmaceutical ingredients), which form 24.9 % out of the total turnover of Grindeks. More than 500 000 Ls last year have been invested into development of the manufacturing facility of active substances (active pharmaceutical ingredients), mainly for purchase of new equipment and construction of premises.

In comparison with 2002, the sales volume of active substances has grown by 22%, which is linked to entry into new markets – of South America and India. The demand for active substances (active pharmaceutical ingredients) demonstrates the good prospects of this direction in the global pharmacy business, at present an especially high demand is for the active substances Zopiclone and Oxyticine manufactured by Grindeks.

Ast he main achievement by Grindeks last year one must name the GMP (Good Manufacturing Practice) Certificate acquired in March, which opens up for the Company the opportunities of successful competition in the European and world markets, as well as the Award of Good Practice in Labour Protection.

At present Grindeks provides employment to more than 500 employees, amount of taxes into the governmental and municipal budgets exceeds one millions of Ls per year. Grindeks exportsits products to 37 countries, the most significant sales markets being the Baltic States (30.1%), Russia (26%), CIS (25.2%), Japan (5.3%), USA(2.6%) and Ireland (3.5%).