In the first quarter of 2021 Grindeks Group has significantly increased turnover and profit

In the first quarter of 2021 Grindeks Group has significantly increased turnover and profit


The consolidated, provisional financial data of Grindeks Group show that in the first quarter of 2021 the Group has significantly increased the turnover and profit. In this period the turnover of Grindeks Group reached 54,7 million euros, which is 11,4 million euros or 26% more than in the first quarter of 2020. The profit of the Group in the first quarter of 2021 amounted to 10,9 million euros, which is 10,2 million euros or 14 times more than in the first quarter of 2020.

In the first quarter of 2021 Grindeks Group continued to strengthen its positions in the global pharmacy market and exported its products to 71 countries for the total of 51,9 million euros. The Group offered its products in the pharmacy market under two brands – Grindeks and “Kalceks”.

Kirovs Lipmans, Chairman of the Council of JSC Grindeks approves of the performance of the first quarter of this year: “The achieved results confirm that growth in the pharmacy business is possible with well designed strategy. We are strengthening our posisitions and moving forward with confidence. I am satisfied with the current development of Grindeks and the work that has been done. I am convinced of our future successful growth in the international pharmacy in the arena.”

Global operations and export increase

The sales volume of the final dosage forms of the Group in the first quarter of 2021 amounted to 51,9 million euros and has increased, compared to the first quarter of 2020 by 11,8 million euros  or 29%.

Dr. chem. Juris Hmeļņickis, Chairman of the Board of JSC Grindeks: “Daring and purposeful progress towards the set goal – that is how I describe work of Grindeks team in the first quarter of this year. Although the obstacles caused by Covid-19 impose additional load in medicine production, logistics and sales, in general the performance has earned us approval of the international cooperation partners, trust of healthcare specialists and patients and excellent results.  We will continue the work started last year with dynamic and confident approach. Regardless of the changes in situation in the health care and pharmacy, Grindeks Group is committed to expanding its operations and global growth, by advancing new business spheres, entering new markets and supplementing the product range.”

In the first quarter of 2021 the sales volume of the final dosage forms of the Group in the European Union and other countries reached 28,4 million euros, which is 10,0 million euros or 54% more than in the first quarter of  2020. The sales in the first quarter of 2021, compared to the first quarter of 2020, has increased 6 times in Israel, 4 times in Austria, 3 times in Poland, doubled in the United Kingdom, increased by 69% in Hungary, by 51% in Sweden, by 49% in Slovakia and by 48% in France.  The high sales performance in the new territory – Mexico, as well as the existing markets in Israel and Austria have been achieved owing to the intensive work and business development in the European Union countries undertaken by “Kalceks”, a subsidiary of Grindeks Group.

Sales in Russia, other CIS countries and Georgia in the first quarter of 2021 amounted to 23,5 million euros, which is 1,8 million euros or 8% more than in first quarter of  2020. Compared to the  first quarter of  2020, a significant increase in sales has been achieved in the first quarter of  2021 – in Ukraine the sales have doubled, in Azerbaijan sales have increased by 59%, in Ubezkistan – by 41% and in Armenia – by  32%.

The strategic goal of the Group is to expand operations in the European Union countries, USA, Canada, Japan, South Korea, Australia and New Zealand.

Range of products meeting contemporary standards

The 2025 Business strategy envisages significant expansion of the range of products of Grindeks with contemporary medicine  for the treatment of cardiovascular, central nervous system, oncological diseases and diabetes, as well as medicine designed for hospital use produced by “Kalceks”. 55 new medical products by Grindeks and 37 new medical products by “Kalceks” are currently under development.

Grindeks constantly produces 25 active pharmaceutical ingredients and has accumulated knowledge in the field of active pharmaceutical ingredients business for many years. It is the unique feature and competitive advantage of the Group. Development of this segment increases the independence of the Group from raw material manufacturers, which in the future will result in a benefit of Latvian and even European Union level in patients’ access to medicines. 26 new active pharmaceuticals are under development at the moment.

Development of the subsidiary Kalceks

In the first quarter of 2021 JSC Kalceks, which is the subsidiary of Grindeks, specializing in medicines designed for hospital use, achieved sharp increase in sales volumes by increasing the number of export countries and introducing new product In the first quarter of 2021 Kalceks products were sold in the amount of 17,6 million euros, which is 9,1 million euros or twice more than in the first quarter of 2021. In the first quarter of 2021 Kalceks medicine were exported to 50 countries and the main sales markets were Mexico, United Kingdom, Poland, Israel and Czech Republic.

Expanding the production infrastructure

Grindeks has started to develop a design for construction of a new pharmaceuticals production plant in Latvia. The new production plant will be constructed in several stages and will include complex processes of production of active pharmaceutical ingredients and diverse technological equipment. It will be the biggest pharmaceutical production plant in the Baltic region with automated and energy efficient technical solutions.

Pharmaceutical forms that are not currently manufactured in Latvia by Grindeks will be introduced in production: ampoules, vials, lyophilized vials, eye drops and antibiotics. 800-1000 new jobs will be created in the new plant, which will be located in Asotes Street 12, Riga.

If the construction design is approved, the construction of the new production plant is due to begin in 3rd-4th quarter of 2022. At the moment construction design and territory improvement works are in process.

About Grindeks Group

Grindeks is an international pharmaceutical Group, and its main activities are research, development, production and sale of original products, generic medicines and active pharmaceutical ingredients.

The Grindeks Group consists of JSC Grindeks and its companies: JSC Kalceks in Latvia, JSC Tallinn Pharmaceutical Plant in Estonia, HBM Pharma s.r.o. in Slovakia, LLC Grindeks Rus in Russia and LLC Namu Apsaimniekosanas projekti in Latvia. Representative offices have been opened in 11 countries.

The main therapeutic groups of Grindeks are cardiovascular, central nervous system, anti-cancer and diabetes medicines. Kalceks specializes in medicines for the hospital segment. The product range consists of the original products Mildronate® (meldonium) and Ftorafur® (tegafur), generics as well as active pharmaceutical ingredients.

In 2020 the Group exported its products to 93 countries. Major “Grindeks” markets are the European Union countries, Russia and other CIS countries, Israel, Canada and the USA.

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