The financial statements of JSC “Grindeks” for the nine months of the year 2009, submitted to “NASDAQ OMX Riga”, certify that the net profit of “Grindeks” Group amounted to 1.74 million lats, which has decreased by 77.3% in comparison with the first nine months of 2008. The Group’s turnover during the first nine months amounted to 38.55 million lats, which is 8.4 million lats or 17.9% less than in the first nine months of 2008. Large-scale investments during the first nine months of 2009 have influenced the total depreciation and amortisation which has increased by 17% in comparison with reporting period of 2008 and reduced the net profit.

In the first nine months of 2009 the sales volume of “Grindeks” final dosage forms amounted to 34.75 million lats; while export volume to CIS countries, except Russia, was 12.8 million lats. Both, devaluation of local currencies in Russia and some other CIS countries, and decrease in demand for medications have had an impact to operational results. Difficulties to pharmaceutical companies and overall pharmaceutical market are also defied by the tendency of distributors to minimize stocks and to postpone previously agreed terms of purchase. In the third quarter the sales of final dosage forms have decreased considerably in Belarus, Kazakhstan and Russia. The sales results in the Baltic States, as well as other European countries were 4.3 million lats and remained at the level of the first nine months of 2008, which against the background of tense economic situation is a good result.

Export of active pharmaceutical ingredients amounted to 3.8 lats in the first nine months of 2009 and is by 2.5% more than in the first nine months of 2008.

Chairman of the Board of “Grindeks” Jānis Romanovskis: “Summer months traditionally are less profitable for pharmaceutical companies, moreover our results have also been affected by the economic downturns and recession in the global economy. In response to the changeable market situation, we have been purposefully strengthening our marketing and sales activities and can already see positive results in October figures. In order to minimize the risks we continue the optimization of manufacturing processes and resources. We keep the focus on wide diversification of business by expanding the product portfolio, registering medications in new, perspective markets and providing contract manufacturing services. We also put efforts in maximizing our sales team activities, and I am sure that the ability to use our advantages brainy and timely is a key to success.”
 

About “Grindeks”
“Grindeks” is the leading pharmaceutical company in the Baltic States. The main directions of its operation are research, development, manufacturing and sales of original products, as well as generics and active pharmaceutical ingredients. “Grindeks” specializes in the heart and cardiovascular, psychotropic and anti-cancer therapeutic groups of medications.
“Grindeks” concern consists of four subsidiary companies in Latvia, Estonia and Russia; as well as representatives and representative offices in 14 countries. Products of the company are exported to more than 40 countries and its export comprises more than 96% of the total turnover. The main markets are the Baltic States, Russia and other CIS countries, as well as Japan and USA. The shares of JSC “Grindeks” are listed in the Official List of “NASDAQ OMX Riga”.

Further information:

Laila Kļaviņa
Head of the Communications Department
JSC “Grindeks”
E-mail: laila.klavina@ grindeks.lv
Phones: +371 67083370, +371 29256012