OREANDA-NEWS. On 03 March 2009 was announced, that JSC Grindeks had submitted the non-audited consolidated financial statements on 2008 to NASDAQ OMX Riga. The non-audited financial results confirm that Grindeks has worked successfully last year; the net profit in 2008 has reached 9 million lats, exceeding the the result of 2007 by 1.9 million lats or 26,8%. Turnover of the Group has reached 62.1 million lats in 2008, which is by 10.5 million lats or by 21,5% more than in 2007.

Chairman of the Board of Grindeks Janis Romanovskis: “The results of 2008 confirm that our business strategy and the set priorities have been accurate because the Group has operated successfully last year. It is known to everybody that the last year will be marked as the beginning of the global financial and economic crisis in the world history, therefore achievement of the strategic goal which envisages keeping growth rates and ensuring the previous increase in turnover and profit was a special task for the company. Development of Grindeks is characterized by another important achievement; regardless of the external financial and economic conditions, in 2008, the Group purposefully continued to implement the investment programm and in January 2009, the new final dosage forms plant was opened by investing a total of  9.1 million lats.”

The most substantial increase in profits in 2008 has been provided by the growth of the sales volumes of final dosage medications of Grindeks by 19,5 %. In total, the final dosage medications have been sold by 56.7 million lats, exceeding the results of the previous reporting period by 9.3 million lats. The most part of medications has been sold in the main export markets; Russia, Ukraine, Kazakhstan and Belarus. In comparison with the previous year, the sales volume of the final dosage medications in Russia increased by 22,1 %, by 22,6 % in Ukraine, by 6 % in Kazakhstan and by 20,6 % in Belarus.

Registration of several types of drugs was completed in Finland last year. In the beginning of 2009, the medication Rispaxol® was registered in Turkey, but by the end of the year it is planned to register the original products Mildronate® and Ftorafur®. Over the course 2007, the Group continiued to register medications in China, as well as the registration of the original product Mildronate® was started in Vietnam.

The growth of exports of the active pharmaceutical ingredients (APIs) also positively influenced the profit indicators of Grindeks,  reaching 5.1million lats in 2008, which is by 1.2 million lats or 30,8 % more than in 2007. The main APIs export markets of Grindeks are Europe, Japan, USA, Australia, Pakistan and India, while the most demanded products are ftorafur, zopiclone, oxytocin, rilmenidine and the new veterinary pharmaceutical products: detomidine, medetomodine and atipamezole. In addition, by exports of zopiclone and oxytocin Grindeks provides a stable position in 35% of the world market, but export of the new veterinary substances in the EU member states constitute a total of 36% of the EU market.

Chairman of the Board of Grindeks Janis Romanovskis: “2009 will be a complex year for Latvian companies, and especially manufacturers in the field of operation optimization and costs reduction. We are aware that the result of Grindeks operation will be determined by both, our own ability to expand the range of products and enter new markets, as well as the economic and financial situation in the world markets. Taking into account that there is very severe competition in pharmacy, the ability of Grindeks to flexibly respond to the changes in export markets and efficient expenses will be of great importance in the near future.”

In 2009, Grindeks will strengthen its positions in the existing markets and continue to enter new, prospective markets. The registration of medications will be continued in Turkey, China and Vietnam this year. Complying with the market requirements, this year Grindeks will expand the range of products within the main therapeutical groups: cardiology, CNS, oncology.”