The Latvian pharmaceutical manufacturer JSC Olainfarm purposefully continues to expand its activities in the markets of Western Europe, both by establishing subsidiary companies and by submitting more and more new patent-free medicines for registration. JSC Olainfarm has already established subsidiary companies in France, Italy, Spain, Germany and Poland, where local managers have also started the work. In addition, in the first three months of this year, five more new products were submitted for registration on the European Union (EU) markets, bringing the total number of new products under registration to 26 medicinal products in various therapeutic groups.

“Pharmacy is an industry where it is not enough to invent a product, start producing it and sell it. Each new preparation should go through detailed development, research, demonstrate efficacy, quality and safety, be registered in each market, and meet a number of other requirements. This process requires huge investments and also time even for simpler preparations that already have analogues on the market. Besides, the competition in the pharmaceutical industry is very fierce, the market has distinct global leaders who are able to dictate its overall development to a large extent. However, Olainfarm has already proven that we are an important local manufacturer of medicinal products and that our products are able to compete with the offers of multibillion-dollar companies. By introducing ourselves to the EU markets with the new product portfolio, the first commercialization of which will start already this year, we see an opportunity to make an additional contribution to the growth of the entire Latvian economy,” says Juris Bundulis, the Chairman of the Board of Olainfarm.

Along with the change of the majority shareholders of the company, which took place only at the end of 2021, Olainfarm immediately changed its development strategy, setting the goal of becoming one of the ten European drug manufacturers in its therapeutic groups as its main priority. During this time, more than 50 new products have been approved in the product portfolio, 26 out of which have already been submitted for registration in the EU countries. The registration process for five new medicinal products has started this year, and it is planned to start this process for at least 16 more by the end of the year. The four new products, which cover cardiology, urology and oncology, have also received certificates of registration in several markets, so that their commercialization could start already this summer.

In general, mostly the medicinal products for the treatment of cardiovascular diseases have been submitted for registration – eight preparations. It is followed by neurology with six drugs and oncology with five new drugs. Three products each submitted for registration in urology and antidiabetic drugs. On the other hand, there is one new preparation in the anti-allergy therapeutic group.

The shareholders of Olainfarm have defined a clear setting and strategic goal – to create a portfolio of products suitable for Western and world markets in order to be able to develop more rapidly in these markets, reducing the influence of historical markets on the operations of the company. Reorientation to other markets, as well as disposal of historically established subsidiaries, is a complex and time-consuming process. To close the old door, you have to open the new one. We devote a huge part of our forces and resources for it. It is important to understand that even one small step in the production of medicines can take several years. These are not food products, luxury clothes or timber that can be easily and seamlessly loaded onto a transport and delivered to another destination. Large investments are also directed towards our development goal. The total volume of planned investments amounts to 100 million euros, which are invested in both, the new product portfolio as well as in the modernization, digitalization and expansion of production facilities, so that the company is even more competitive in international markets. All residents of Latvia will also benefit from it. Strong local manufacturers of medicinal products are one of the essential pillars of the national economy and health security, as they significantly reduce the risks that we will not be able to ensure the availability of basic medicines to Latvian patients in emergency situations. Local producers are crucially important in situations when international deliveries stop,” emphasizes Jānis Buks, the Chairman of  the Council of Olainfarm.

Already for the second year in a row, young chemistry teachers have been invited to apply for the “Chemistry Between Us!” scholarship established by the Latvian pharmaceutical manufacturer JSC Olainfarm, within the framework of which five young specialists have the opportunity to receive a one-time support of 3,000 euros each year. This year, SIA Centrālā laboratorija has also joined the initiative, which will award scholarships to the best young teachers of biology. Accordingly, the total fund of the scholarship has already increased up to 135,000 euros, and from now on 10 scholarships will be awarded annually. Until 15 April young specialists are invited to apply for a total of six scholarships, while applications for four more scholarships will take place in the autumn.

“We often hear in the public space calls for the state to consider and solve the issue of shortage of natural science specialists in the labour market. However, it will not be enough with calls for the government to solve or for children to learn the subjects. We should have professional, motivated and passionate teachers, who help young people to discover the fascinating world of natural sciences, and the wide possibilities of career choice. Therefore, Olainfarm has already implemented specific solutions to motivate and evaluate the new teachers, who are the foundation of the foundations that form and strengthen interest in chemistry, mathematics, biology and physics.  This will be already the second year when we will award scholarships to the outstanding young chemistry teachers. We are glad that the Central Laboratory has also joined the initiative this year, with the support of which future biology teachers will also receive scholarships,” emphasizes Juris Bundulis, the Chairman of the Board of JSC Olainfarm.

“Chemistry Between Us!” is a long-term scholarship program for future teachers, which was started by Olainfarm in 2023. Olainfarm will invest 75,000 euros in the program over five years, awarding five scholarships of 3,000 euros each year to the new chemistry teachers. While the Central Laboratory plans to allocate 60,000 euros for this purpose over the next four years, providing five scholarships to biology teachers every year.

“Biology is a subject that raises interest of young people in researching, analyzing and go into details. Having chosen to study biology several years ago and applying the acquired knowledge in the medical laboratory, I can say with full confidence that biology is an exciting science that forms the basis of everything around us and gives the opportunity to obtain a respectable profession. Until now, the Central Laboratory has worked with young people in various projects, organizing open biology lessons in the laboratory, which we will continue to do, but the teacher is the one who gives the child the first impulses, interest and knowledge about a specific subject. The energy and creativity of young teachers in our education system is now vitally needed to improve the overall quality of education and knowledge of students in science subjects. A teacher should not only be well paid, but also valued and respected by society. Therefore, we are pleased that we can be a part of such a socially important project,” says Stella Lapiņa, the Chairman of the Board of SIA Centrālā laboratorija.

Young and chemistry and biology teachers are invited to apply for the scholarship from 18 March to 15 April. The regulations of the scholarship program and the application form are available on the website of the project www.starpmumsirķīmija.lv. The scholarship will be awarded to students with the highest results in the previous semester. Young specialists who are currently learning the profession of a chemistry or biology teacher or learning natural sciences and in parallel are also teaching chemistry or biology at school are invited to apply for the scholarship. It is possible to apply for the scholarship twice a year – three scholarships for chemistry teachers and three scholarships for biology teachers will be awarded in the spring, and a total of four scholarship holders will be selected in the autumn.

On Friday, 8 March, the Minister of Finance of the Republic of Latvia Arvils Ašeradens, visited the Latvian pharmaceutical production company JSC Olainfarm during a regional visit. During the meeting, the senior official and management of the company discussed the availability of European Union (EU) programs and their compliance with the development needs of Latvian producers, issues of human resources development and cooperation of the company with educational institutions. Discussion were held on the solutions, how the state can help the company continue to develop successfully. 

“I see that a new, positive development stage is expected for Olainfarm: the process of changing shareholders has been completely completed, there is a clear, understandable and serious investment plan, as well as well considered plans for the growth of export volume oriented to the European market. I am glad that the funds of the EU fund programs have been successfully invested in research, development of new products, technological development, greener production process and improvement of efficiency. It is important that the company also has plans for cooperation with the large Latvian universities of sciences – RSU, RTU and LU, because the biotechnology and pharmaceutical industry is currently one of the fastest growing economic sectors in the world. “Olainfarm” has a strong growth potential, therefore I wish you good luck and let’s keep our fingers crossed that it succeeds in becoming the next Latvian company, whose sales volume and growth rate would place it in the TOP 5 of Latvia!”, says Minister of Finance Arvils Ašeradens.

The Minister listened with great interest to the detailed and convincing information provided by the management team – Andrejs Leibovics, Jānis Buks, Juris Bundulis, Jānis Leimanis, Andris Jegorovs, Ansis Pekšs and Evita Osīte about the development of the development strategy and personnel policy of the company, and become acquainted with the Olainfarm medicine production plant and as well as planned investment projects already commenced.

Thanks to the available state and EU structural fund programs, the company will invest more than 40 million euros in the coming years in the modernization of the production site, digitalization, expansion of production and also in green energy projects, which will enable even faster and more sustainable growth of the company. Several of the investment projects are implemented within the ALTUM program of large investment projects, with the aim of introducing at least 10 new products into production and increasing export volumes in new markets by at least 80%. The total investment plan of Olainfarm for the next five years reaches 100 million euros.

“As a Latvian company and manufacturer, we are interested in tax policy being predictable and competitive at least at the level of Baltics. Every year we pay an average of around 13 million euros in taxes to the state budget in Latvia, the majority of which consist of labour taxes. However, when looking at the development trends of the labour market, it is important that the labour tax burden does not increase. That would limit the opportunities for us and other employers to offer competitive remuneration to qualified specialists who are also welcome in the markets of other countries,” explains Juris Bundulis, Chairman of the board of JSC Olainfarm, noting that the company each year increases the employee remuneration fund, invests in a basket of additional benefits, and also implements social responsibility initiatives aimed at the development of education and science in Latvia and preparation of young specialists. For example, a scholarship program for future chemistry teachers was launched last year, but on a daily basis the company cooperates with RTU Olaine College of Technology, University of Latvia, Riga Technical University, Riga Stradins University and other educational institutions to help create skills-based education.

During the meeting, the parties also discussed the need to further strengthen Latvian pharmaceutical companies and their competitiveness. For example, 94% of the Latvian medicines market is made up of imported medicines, but by expanding the supply of products from domestic manufacturers, we can both increase competition and drive down prices through greater use of generic medicines. Increasing the market share of local manufacturers in Latvia would also contribute to greater security of physical access to medicines for Latvian patients, reducing the risks of supply disruptions and, as a result of threats, ensuring the production of medicines and reserves for the forces of local entrepreneurs. In this context, the policy implemented by the state with regard to the regulation of the medicine market is also important, where changes are currently recommended under the leadership of the Ministry of Health that would reduce the attractiveness of the market for manufacturers of both, Latvian and international medicine, as the registration of each new medicine requires large investments and also time resources. Like the representatives of Olainfarm mentioned during the meeting, it is important not to disrupt the market mechanisms that are already functioning perfectly by the reform.

The pandemic and the subsequent war in Ukraine clearly showed how vulnerable the international drug supply chains are, and how critical the consequences can be in countries like Latvia, where drugs from foreign manufacturers are strongly dominant. On Tuesday, 13 February, during the discussion “Availability of Medicines in Latvia at X Hour: the Ukrainian Experience and the Latvian Reality”, health care and security industry experts concluded that, unfortunately, the country is currently not prepared to ensure the availability of medicines to all patients in crisis situations. A crisis can be, for example, of a military nature, a recurrence of a pandemic, the diversion of the volumes of foreign manufacturers elsewhere, to larger or their home markets, or other unforeseen circumstances. In order to prevent possible problems with the availability of medicines, the Ministry of Health, in cooperation with other responsible institutions and non-governmental partners, should immediately commence the work on the creation of a national reserve fund for medicines.

The seriousness of the situation is also confirmed by the survey* conducted among Latvian health care specialists and pharmacists, which shows that only 9% of those working in the industry have had access to all the medications needed for their work over the past four years. Interruptions in international supplies and supply quotas set by foreign manufacturers are cited as the most common reasons for the unavailability of medicines. Only 11% of the surveyed specialists believe that the country is prepared for the supply of medicines to citizens in emergency situations, besides, only 13% feel sufficiently informed about how the supply and distribution of medicines to patients in such situations would be ensured.

However, 84% of doctors and pharmacists believe that Latvia should create a national medicine reserve fund. Oksana Sičko, a neurologist and head of the Ukrainian support society “SICH”, also pointed out on the need for this during the discussion.

“I recommend Latvia to learn from Ukraine’s mistakes and to prepare for crisis situations in times of peace! When the war started, the country had almost no reserves of medicinal products, and the situation was made even worse by the fact that the entire world had been living in the shadow of a pandemic for several years before that. Latvia needs to create not only emergency medicine stocks, but also medicine for chronic patients who cannot stop their therapy, such as diabetes and cancer patients. Besides, Latvia is in a very advantageous situation, because historically there is a strong pharmaceutical industry here. For example, Olainfarm is already expanding its product portfolio, and the state needs to find how local production can be further supported in order to ensure that Latvian patients are provided with medicine for at least 3-6 months in the event of any emergency,” emphasizes O. Sičko.

The seriousness of the situation in the field of medication supply is also brought up by the European Union (EU). At the end of 2023, the European Commission and the European Medicines Agency have approved the EU’s list of critically important medicines, the continuity of supplies of which is a priority of the EU. On the other hand, the previously published report of the European Commission covers a series of solutions and proposals to ensure the continuity of availability of medicines at the highest possible level. The solutions provide for the evaluation of both regulation, supply and procurement issues, and also call on the member states to strengthen the pharmaceutical industry in the EU and also to assess the formation of national stocks.

“Latvia currently has established an effective and operating system for the supply of medicines for daily needs, however, unfortunately we are not ready for crises at the national level. The Covid-19 pandemic already proved that the country is not ready to deal with these issues professionally and promptly. It fully relied on the social responsibility of market participants, but it purchased vaccines late and, as it turned out, in an unreasonable amount. However, we see more and more clearly that there must be a solution and we must start working on it in a timely manner. About 94% of medicines in the Latvian medicines market are imported from other countries. Therefore, we are very dependent on international supplies, and we have experienced their interruptions several times in recent years. At the time when 42.9% of inhabitants of our country has chronic diseases, staying without the necessary medicines would not only significantly worsen their health condition, but also increase spending for both the inhabitants themselves as well as the country as a whole,” says Jānis Lībķens, Head of LNZAA (Latvian National Medicines Supply Association), stating that with the existing regulation and system, medicine supply companies usually do not build stocks for longer than a month, because otherwise disproportionate financial risks may arise.

On the other hand, Elīna Egle-Ločmele, the Chairman of the Board of the Federation of Latvian Security and Defense Industries, pointed out that the creation of a national medicine reserve fund is very important for national security.

“In emergency situations, such as war, natural disasters or other threats, the fast and efficient supply of medicines becomes vital, as it not only ensures the need of inhabitants for medicines, but also strengthens the overall security and protection level of the country. A clear system, responsibilities, awareness and preparation of those involved are crucial so that, in emergency conditions, as much resources as possible can be devoted to the management of the specific crisis, instead of trying to solve issues that could have been prepared in advance. In business we call it business continuity, but at the national level – the sustainability of society,” E. Egle-Ločmele is convinced.

On Monday, February 5th, the leading pharmaceutical company in the Baltics, JSC Olainfarm, was visited by Viktors Valainis, Minister of Economy of the Republic of Latvia. During the meeting, the Minister and the management of the company discussed the current issues concerning the development opportunities for Latvian pharmaceutical manufacturers, Olainfarm’s new product portfolio, investments in modernisation and production capacity expansion, as well as even faster expansion of operations in the Western and Global markets.

During the meeting, the Minister also visited Olainfarm’s drug production facility, where more than one billion tablets and capsules are produced and provided to patients every year. In line with the company’s long-term strategy, production capacity is set to increase significantly in the coming years, with export volumes growing by more than 80%, also with the help of state support programmes.

“Pharmacy is one of the strongest and most export-oriented sectors of the Latvian economy, with a very high export potential. It undeniably makes an important contribution to the country’s overall development and growth, creating high value-added products. Olainfarm is an excellent example of how targeted investment in automation, digitalisation and modernisation, as well as in product portfolio expansion and entering new markets, will enable Latvian companies to compete even more successfully with major global players. The task for the State is to provide effective and smart support to companies to boost their export capacity, both through various financial instruments and by making our business environment more friendly for local entrepreneurs, for example by reducing the administrative burden. We need to create a business environment that both attracts new investments to Latvia and helps national capital companies to grow and develop,” said Viktors Valainis, Minister of Economy, at the meeting.

The Minister also recalled that this year’s State Budget includes additional funding for loans to companies for large investment projects, while €26.5 million is available this year for improving technology transfer systems.

In turn, Juris Bundulis, Chairman of the Board of Olainfarm, emphasised at the meeting that at least EUR 100 million is to be invested in development in the next five years. The company also benefits from available government support programmes in various areas, which allow it to significantly expand its product portfolio, improve its competitiveness and exportability.

“With the change of Olainfarm’s shareholders less than a year ago, we completely revised our development strategy and set the goal of becoming one of the top ten European manufacturers of medicines in our therapeutic groups. In two years, we have achieved a great deal – we have submitted 21 new medicines for marketing authorisation in the European Union. This year, we plan to do this for 20 new medicines. Last year we also launched ambitious projects aimed at improving efficiency and increasing production capacity, as well as investing in sustainable production by launching large-scale projects such as a solar panel park and designing the most advanced chemical and pharmaceutical wastewater treatment plants in the Baltics,” said Juris Bundulis, Chairman of the Board of Olainfarm.

During the meeting, the parties also discussed the need to further strengthen Latvian pharmaceutical companies and their competitiveness. For example, 94% of the Latvian medicines market is made up of imported medicines, but by expanding the supply of products from domestic manufacturers, we can both increase competition and drive down prices through greater use of generic medicines. Increasing the market share of local manufacturers in Latvia would also contribute to greater security of physical access to medicines for Latvian patients, reducing the risks of supply disruptions. As Latvian domestic drug manufacturers are now competing in all markets with multi-billion international pharmaceutical companies, it is critical that industry regulation and support instruments take into account this global context and stringent regulation. For example, it takes a company a minimum of 2.5 years to bring a new product to the patient in order to comply with all registration and regulatory requirements, which may vary from market to market.

In the last two years, the leading Baltic pharmaceutical company JSC Olainfarm has already submitted 21 new products for registration in total to 10 European Union (EU) countries, for 17 of which the registration process started last year. It is planned that this year the registration process will start for at least 20 more medicinal products.

The largest number of new medicinal products registrations have started in Germany – 18. While 16 new preparations are in registration in the Baltic States, Spain and Poland. In Italy the proceeding has been commenced for 15 new products, but in France – 14. Olainfarm has already approved more than 50 patent-free medicines in the new product portfolio, for which, according to the market situation and also the available registration submission times, according to the schedules of the competent authorities, registration has been started in various markets of the Western European countries.

“Last year has been very dynamic for us. In 2022, we submitted four new products for registration on the EU markets, and in 2023 – already 17. On average, the registration of one product lasts for almost a year and a half, and in this process we should be ready to promptly submit additional information about the quality, clinical research and safety of the developed medicine. There is a story of the team’s determination and passion behind these number, because in a very short period of time we have not only created a new product portfolio, but also conduct an intensive registration process for a number of products. The target of Olainfarm is to become one of the 10 leading pharmaceutical companies in Europe in its therapeutic groups, and the registration of each new medicinal product brings us closer to this strategic goal,” emphasizes Jeļena Voļperte, Head of the Registration Department of JSC Olainfarm.

The new medicines are both in the existing and new therapeutic groups of JSC Olainfarm – neurology, cardiology, urology, oncology, as well as medicines against allergies, infections and diabetes.

In 2023, the company already successfully completed the registration of a new antibacterial medicine used in urology in Latvia, Lithuania, Estonia, the Czech Republic and Slovakia, as well as the registration of a new cardiology product in Latvia, Lithuania, Estonia, Slovakia, France and Spain. Commercialization of these products will begin in the middle of this year, according to the requirements and the price registration process. Besides, registration certificates have been received for endocrine therapy medicines in Spain, the Czech Republic, Slovakia and the Baltic States.

At the same time with the change of the majority of shareholders, which was completed only at the end of 2021, the company reviewed its development strategy, focusing on the development of a new product portfolio in the segment of patent-free medicines, which would be competitive in the Western European and global markets. Latvian patients will also benefit from this, due to the fact that upon expansion of the offer in the patent-free medicine segment, competition and price pressure for original preparations increase.

“At a time when the government has approved the report of the Ministry of Health on the financial availability of medicines, the question of what instruments will be used to promote market development in the long-term perspective, in order to create competition for imported original preparations, has undeservedly remained in the background. The import of foreign manufacturers in the Latvian medicine market accounts for 94%. Therefore, the role and competitiveness of local medicine manufacturers should be strengthened. A wider offer of patent-free medicines provides doctors, pharmacists and the patients with more possibilities of choices for themselves, due to competition also lowering their prices and thereby promoting the availability of medicines and reducing the risks that a number of imported medicines may not be available for Latvia in emergency situations. Currently, for a number of diagnoses, only medicines produced by a specific foreign manufacturer are available in Latvia, creating some kind of monopoly. Therefore we also make large investments in our product portfolio in order to become more competitive both internationally as well as in Latvia,” says Juris Bundulis, the Chairman of the Board of JSC Olainfarm.

JSC Olainfarm has devoted all its efforts and resources for the past two years to prepare a portfolio of products suitable for the markets of Western countries, as well as to register these products as soon as possible. For this purpose, in 2022 and 2023, the total investment in new products was 12 million euros, but in 2024 it is planned to invest at least another 22.25 million euros and in 2025 – 16.2 million euros.

Olainfarm, one of the leading pharmaceutical companies in the Baltics, has invested EUR 3.3 million to start the construction of a solar panel park on its premises in Olaine. The project aims to further invest in the sustainability of the company by developing the use of green energy in its energy supply. The total capacity of the solar park will be 3.2MW, providing up to 40% of the company’s total annual electricity consumption. It will be one of the largest solar parks in Latvia, developed for self-consumption by a manufacturing company.

Igors Vilcāns, Chief Power Engineer at Olainfarm, emphasizes that the company has been implementing very targeted activities to reduce its overall energy consumption and increasingly use green energy solutions for the past nine years. For example, in the first nine months of this year, the average consumption of energy resources per unit of chemical production at JSC Olainfarm decreased by 16.8%, despite the fact that the company’s production volumes increased. “We plan our energy consumption very carefully to ensure continuity of production, but also to become more energy efficient and greener. We see that energy efficiency and green energy solutions allow us to cut costs now and in the long term. These investments are also paying off in our energy independence. The solar park will allow us to generate up to 3500MWh/year of green electricity,” says Mr Vilcāns.

The solar park is being developed on the company’s site in Olaine. It will cover a total area of 4.2 hectares and will host around 5,400 solar panels with an installed capacity of 3.2MW. Solar energy will provide up to 80% of the company’s electricity during the summer season and up to 40% on average per year. The project is scheduled for completion in spring 2024.

“The solar park project is part of Olainfarm’s sustainable development strategy to promote greener energy use and contribute to the overall sustainability of society. As a socially responsible company, our commitment is not only to public health and access to medicines, but also to ensuring that the environment remains healthy as a result of our actions. The development of the solar park is an important step towards energy sustainability, strengthening both our and Latvia’s overall energy independence. Importantly, this project not only reduces our environmental impact, but also increases our energy self-sufficiency and reduces the risks of rising energy costs. This is an excellent investment for both the company and the environment,” says Juris Bundulis, Chairman of the Board of Olainfarm AS.

Olainfarm aims to invest at least EUR 3 million per year in green energy projects and energy efficiency.

The measures taken so far have already ensured that Olainfarm’s CO2 emissions have been reduced by 29% over the last five years. In addition to the solar park, the company also plans to renovate the heating and steam networks with a total investment of more than €3 million, reducing energy losses and thus CO2 emissions. Work is also continuing on the company’s wastewater treatment plant modernisation project, which will see the development of new, fully automated, closed-loop plant technology. The total investment in this project is approaching €11.3 million. Construction of the most advanced chemical and pharmaceutical wastewater treatment plant in the Baltics is planned to start in 2024 and to be completed in 2026.

The leading pharmaceutical company in the Baltics – JSC Olainfarm – has devoted all its efforts and resources for the past two years to prepare a portfolio of products suitable for the markets of Western countries, as well as to register these products in the markets of Western Europe as soon as possible. Currently, more than 50 new products have already been approved, 17 out of which the have started the registration process this year, while the registration process for another 20 products will start in 2024. In 2022 and 2023, the total investment in new products reaches 12 million euros, but in 2024 it is planned to invest at least another 22.25 million euros and in 2025 – 16.2 million euros.

“With the change of shareholders, we completely reviewed the development strategy of JSC Olainfarm, setting the goal of becoming a European TOP 10 pharmaceutical company in its therapeutic groups. Only less than two years have passed, but we have already approved more than 50 new products and actively started the registration process in a number of Western markets. We include patent-free medicines in our product portfolio, which also cover new therapeutic groups for us, such as urology, oncology and diabetes medicines.
 This year, for the first time in the history of Olainfarm, we have also performed successful transfer of technologies for the production of four cardiology preparations, which, upon completion of the registration process, we will introduce into permanent production right here in Latvia. Next year, this number will increase, as will our investments in further development,” says Juris Bundulis, the Chairman of the Board of JSC Olainfarm.

During this period, the company has made investments both in the development of the product portfolio, as well as in the modernization of production, increasing capacity and wider use of green energy. Besides, in accordance with the vision of the shareholders of the company on the need to strengthen the production of medicines and medical products in Latvia, changes were made to the structure of JSC AB CITY group by adding the producer of herbal medicinal products JSC Rīgas farmaceitiskā fabrika to the group of companies JSC Olainfarm. It already includes LLC Silvanols, LLC Tonus Elast and clinics DiaMed and OlainMed. Thus, resources and competences are gradually being consolidated within the AB CITY Group, which will ensure faster development of pharmaceutical companies both in export as well as in Latvia.

“This autumn, the transition period after the change of the majority shareholders of JSC Olainfarm at the end of 2021 has completely ended. With the support of shareholders and a clear strategic vision, the company is being prepared for long-term expansion in the Western European and global markets. Strong and reliable foundations have been laid for the pharmaceutical industry in a very short time, which will allow Olainfarm to present itself at a completely different level. Our own, national pharmaceutical industry and the local capital companies that make it up are a huge asset and provide the opportunity for Latvia to rapidly develop also internationally,” says Jānis Buks, the Chairman of the Board of JSC Olainfarm.

JSC Olainfarm primarily develops its portfolio of medicines in such areas as neurology, cardiology, urology, oncology, as well as for the treatment of such diseases as diabetes, allergies and infections, specializing in the segment of patent-free medicines. The Baltic States, the Czech Republic, Poland, Slovakia, Germany, Italy, Spain, France, Georgia, and the United Kingdom are defined as priority export markets where new products are registered. The focus of development is also the work in Canada and the USA, where market research and negotiations with potential partners about the form of cooperation are currently underway.

Like it was reported, at the end of November, the meeting of shareholders of JSC Olainfarm made a decision to increase the share capital of the company by 4.9 million euros, reaching 35 million euros. This will enable JSC Olainfarm to establish new subsidiaries in several EU markets.

The strategy of JSC Olainfarm, which was developed at the same time with change of the majority shareholders of the company, provides for JSC Olainfarm to reach the level of TOP 10 European leading pharmacy companies in its therapeutic groups, making voluminous investments in the development and expansion of investment products, covering also new therapeutic groups, such as oncological and antidiabetic medicines. More than 50 new products have already been approved, which will be gradually introduced to the market in the coming years in accordance with the requirements. For example, this year JSC Olainfarm has registered a new medicine used in urology and started registration for several cardiology and anti-inflammatory products in a number of Western European markets, including Germany, Italy, Poland, the Czech Republic, France, Slovakia, the United Kingdom, etc. The registration of a new medicinal product for endocrine system has also been completed in Latvia, and it is expected that the registration of this medicine will be completed in seven more EU countries in the coming months. In total, shareholders of the company have approved investments of more than 100 million euros for the next five years.

With a purpose to strengthen corporate management and strategic development of the company, Chairman of the Board Sergejs Korņijenko has been appointed in the Supervisory Council of JSC Olainfamr, the leading pharmacy company in Baltics. The meeting of shareholders has also adopted the decision to increase the share capital of the company up to 35 million euros, in order to ensure further development of the product portfolio and expansion in the export markets of the Western countries.

Vadims Telica, Andrejs Leibovičs, Roberts Tavjevs, as well as Jānis Buks, who is the Chairman of the Supervisory Council, will continue the work in the Supervisory Council of JSC Olainfarm. S. Korņijenko has been approved in the Council instead of Irina Maligina, thus completely closing the transitional period after the change of several majority shareholders.

“We stay together with JSC Olainfarm only for longer than a year, but since the first day we had clear confidence that the company needs a new development strategy and voluminous investments, driving towards the markets of the Western countries, and accordingly a new product portfolio should be created. We have managed to ensure it during a comparatively short period of time, in order to continue the development of JSC Olainfarm in the markets of the Western countries by expanded and competitive product portfolio and the patients of the local market would have medicinal products of Latvian manufacturers available in a broader assortment, reducing dependence from imported medicines,” emphasizes Andrejs Leibovičs, the member of the Supervisory Council of JSC Olainfarm and one of the owners of JSC AB City.

So far the share capital of JSC Olainfarm constituted 30,079,190.2 million euros. Pursuant to the decision of the meeting of shareholders, it will be increased by 4.9 million euros, reaching 35 million euros. That will enable JSC Olainfarm to perform foundation of new subsidiaries in several EU markets, where active registrations of new products currently take place, in order to provide patients with them in accordance with the EU requirements of the registration and commercialization of medicinal products.  Besides, the company is actively working on the development opportunities also in other new export markets, such as USA and Canada, as well as the work on assessment and inclusion of even new products in the product portfolio is continued.

“Since change of the majority shareholders of JSC Olainfarm, the company rapidly changed its historical development strategy, aiming to become a European, modern and efficient company capable of offering high-quality products to the markets of Western countries. Upon increase of the share capital, the shareholders of JSC Olainfarm have reconfirmed that all available resources are dedicated for this purpose in order to develop the product portfolio corresponding with the market of Western countries as soon as possible, taking into account also the whole normative regulation of the EU and continue modernization of the company,” indicates Jānis Buks, the Chairman of the Supervisory Council of JSC Olainfarm.

The strategy of JSC Olainfarm, which was developed at the same time with change of the majority shareholders of the company, provides for JSC Olainfarm to reach the level of TOP 10 European leading pharmacy companies in its therapeutic groups, making voluminous investments in the development and expansion of investment products, covering also new therapeutic groups, such as oncological and antidiabetic medicines. More than 50 new products have already been approved, which will be gradually introduced to the market in the coming years in accordance with the requirements. For example, this year JSC Olainfarm has registered a new medicine used in urology and started registration for several cardiology and anti-inflammatory products in a number of Western European markets,including Germany, Italy, Poland, the Czech Republic, France, Slovakia, the United Kingdom, etc. Shareholders of the company have approved investments of more than 100 million euros for the next five years.

Chemists, engineers and IT specialists are among the most demanded professions in the labour market. At the same time, we are already facing an acute shortage of science teachers. Therefore, assessing the importance, role and contribution of teachers in the overall development of the country, JSC Olainfarm has created a 75,000 euro scholarship program for new chemistry teachers. The first three scholarship holders were welcomed in the spring of this year, while the next two autumn scholarships, each worth of 3,000 euros, were received by students of the University of Latvia and chemistry teachers Anna Liepiņa and Tots Koķis.

“Education is the basis of any developed and prosperous country. By investing in the education system, we are also investing in the overall well-being of the country. That is why it is so important that we jointly create a system where its foundation – the teacher – feels valued, needed and motivated. It is a joint effort of the whole society, because the attitude of the society also shapes the environment and the reputation of the profession. Therefore, we highly appreciate the initiative of JSC Olainfarm by starting a scholarship program for new chemistry teachers and developing it also on the day of science teachers, giving teachers the opportunity to get to know the chemistry industry from the industry’s side,” says Anda Čakša, the Minister of Education and Science, a patron of the scholarship.

In total, 11 young chemistry teachers applied for the autumn scholarships for young chemistry teachers. When reviewing applications, both their achievements and motivation letters were evaluated. 3000 euro scholarships will be received by Anna Liepiņa, a 1st-year student of the bachelor’s study program of the Faculty of Pedagogy, Psychology and Arts of the University of Latvia and a chemistry teacher at Jelgava Spīdola State Gymnasium, as well as Tots Koķis, a 2nd-year student of the bachelor’s study program of the Faculty of Chemistry of the University of Latvia and a chemistry teacher in Riga State 2nd Gymnasium.

“Most often, teachers are the ones who create and strengthen our interest in a specific subject, which afterwards directly affects our choice of profession. That is why it is so important to raise the prestige and appreciation of the profession of a teacher in society, because they lay the foundation for the development of the country. The large shortage of chemistry and natural science teachers is alarming, so it is important for us to contribute so that Latvia has young, motivated and passionate teachers. All of our scholarship holders are an excellent example of this, proving that we have excellent, inspiring and professional young teachers,” says Juris Bundulis, Chairman of the Board of JSC Olainfarm.

Tots Koķis, holder of JSC Olainfarm chemistry teacher’s scholarship, who is studying chemistry in the University of Latvia in the 2nd course and started to work as a teacher in Riga State 2nd Gymnasium immediately after high school in the international baccalaureate program, says that: “A teacher needs not only knowledge, but also experience in the industry in order to inspire students for further careers in chemistry. “Olainfarm” scholarship is a great honour for me and also an opportunity to dedicate even more time and resources to working with students, encouraging them to see the important role of chemistry and its practical application in everyday life.” T. Kokis also leads a study group at the school, where they work on solving non-standard chemistry tasks from olympiads and applying this knowledge in laboratory work. In parallel with his studies at the university and work at the school, he also works at the Institute of Solid State Physics on nanoparticle syntheses in the spectroscopy laboratory.

While, Anna Liepiņa, who is a 1st-year student at the Faculty of Pedagogy, Psychology and Art of the University of Latvia and works as a chemistry teacher at Jelgava Spīdola State Gymnasium, says that she has liked chemistry since school days, so this year she got involved in the project “Teaching Stuff” (Mācītspēks) and started working at the school . A. Liepiņa already has a master’s degree of food technologist, but she finds her calling as a chemistry teacher. “I like children and working with them, so I want to help them discover the wide possibilities of natural science. I have always liked chemistry, where I should say thanks to my chemistry teacher. I am glad that JSC Olainfarm supports young teachers, because this evaluation and support is very important for us, confirming that we are noticed, appreciated and that our work is valuable,” emphasizes A. Liepiņa.

Linda Daniela, Dean of the Faculty of Pedagogy, Psychology and Art of the University of Latvia, states that this year 15 new students started studies in the programme of science teacher at the University of Latvia. Nine of them have chosen to study directly to become chemistry teachers. In general, only four to five chemistry teachers graduate from the University of Latvia every year, and not all of them choose to work at the school. “Without professional and passionate teachers, there will be no future chemists, engineers, physicists, mathematicians and IT specialists who are so much needed in the labour market. “Therefore, we think that the scholarship established by Olainfarm for future chemistry teachers is an excellent example of synergy between the academic field and the business environment, which will be hopefully followed by other companies, helping new teachers to grow, learn and gain confidence in their invaluable role” says Linda Daniela, Professor and Dean of the Faculty of Pedagogy, Psychology and Arts at the University of Latvia.

At the beginning of this school year, there was a shortage of 1,013 pedagogues in Latvian schools and preschools, mostly in science subjects, according to the information provided by the Ministry of Education and Science. Besides, the rate of return of new teachers remains at only one percent, which means that the shortage of teachers in schools will only increase every year. Accordingly, the interest of young people in the in-depth study of natural science subjects and taking centralized exams in these subjects remains stable low, due to the lack of pedagogues who could teach these subjects. For example, just under 14% of all high school and special school graduates chose to take a centralized exam in chemistry, according to  statistics released by the National Center for Education and Content  for the academic year 2022/2023.

Being aware of and appreciating the great importance of teachers in the educational process and quality, and contributing to ensure that we have chemistry teachers not only today, but also in a year and ten years from now, JSC Olainfarm established a scholarship program for future chemistry teachers. Within five years, it is planned to allocate 75,000 euros for this purpose, with one-time scholarships of 3,000 euros being awarded to a total of 25 new chemistry teachers.

In Latvia, 18% or almost every fifth child and young person under the age of 18 spend five or more hours of their day looking at smart devices, and 43% spend three to five hours a day, according to a survey of parents conducted by the Latvian Children’s Support Fund (LBAF). Taking into account that this time far exceeds the recommended time and more and more children develop screen addiction, which affects behavior and family relationships, from 13 September, LBAF in cooperation with the leading pharmaceutical company in the Baltics, “Olainfarm”, organizes the social campaign “Show tricks, not phone!”.

The purpose of the campaign is to help reduce the hours children spend on screens with practical recommendations and everyday jokes, and instead spend more and better quality time with parents, friends or other loved ones.

“On the one hand, it’s very convenient to give your child a smart device and do your own things in the meantime. At the same time, the phone or tablet often becomes not only an instrument of manipulation and power of adults over their offspring, but also causes screen addiction and behavioral problems for children, which must then be solved in the offices of specialists for the whole family together. LBAF is also increasingly approached by families who solve the problems of screen addiction together with psychologists and other specialists. Therefore, with the help of the campaign, we would like to invite all Latvian parents to prioritize spending time with their children more often, including by making a trick or joke, instead of distracting the child’a attention with a “digital soother””, the head of LBAF Kaspars Markševics introduces with the goals of the social campaign “Show tricks, not phone!”.

He emphasizes that until now the public space has talked about the effects of excessively long use of smart devices on the psyche and behavior of children and young people, but the role and involvement of parents has not been emphasized enough in order to change the situation. As part of the campaign, parents and their children are invited to play at least one joke, a funny puzzle, or trick, for 21 days and thus enjoy the time spent together.

According to recommendations developed by the World Health Organization, screen time is not recommended at all for children under the age of two years, specialists do not recommend to exceed one hour for children between two and four years of age, and two hours between five and 17 years of age.

Reality is different. The survey shows that in many families the phone and tablet have become a kind of “digital soother”. Very often, or 15% of Latvian parents, use smart devices to calm and entertain their children in the situations when they feel tired, 13% of respondents admit that they do it when they have to work from home, while for 12% of respondents a smart device serves as an effective method when children are restless in public places.

“Different types of screens and technologies inevitably enter our everyday life and we certainly cannot and should not avoid it. However, children, especially at the preschool age, should enjoy their childhood. A child will hardly remember the day he spent watching cartoons on the phone, but will remember the adventures with his or her loved ones. No device, no matter how powerful and interesting, can replace relationships with fellow human beings. Therefore, let’s let the children experience childhood with big and small adventures, and let’s remember and enjoy it ourselves! I believe that one trick a day, which will take up to 15 minutes for the parents, will give the child more than the hours spent on the screen,” Juris Bundulis, the Chairman of the Board of JSC “Olainfarm“, is convinced.

More details about the social campaign “Show your tricks, not a phone for child!” and the tasks to be implemented together with the children can be found on the website www.stiki.lv.

About the research:

According to the order of LBAF, the survey was conducted within the framework of the sociological study conducted the market research company “Norstat” in August of the current year, 700 Latvian residents who have children aged 0 to 18 were surveyed online.

About LBAF:

LBAF (Latvian Children’s Support Fund – Latvijas Bērnu atbalsta fonds) is a public benefit organization that has been operating since 26 January 1994. Thanks to already close and long-term cooperation, as well as continuing to attract more and more new supporters, the funds has been able to provide help and support as much as possible, and do everything to make the life of every child being under our care more colorful and the future brighter. Since the end of 2019, LBAF has also been a provider of social services and provides social rehabilitation services for children with communication difficulties and behavioral disorders and their supporters on a daily basis.

Leading pharmaceutical company in the Baltics, Olainfarm AS, in collaboration with the Olaine municipality, has launched a new initiative starting from June of this year. Every newborn registered in the Olaine municipality will receive a baby care package worth over 50 euros. Considering the number of newborns registered in Olaine, there will be at least 200 packages distributed annually, with a total value exceeding 10,000 euros. Each package includes essential items for infant care, such as baby clothes, a blanket, a toy, hygiene products, and other necessary items.

“The birth of a child into a family brings great joy and responsibility. At the beginning of this new journey, everyone needs encouragement, especially when starting something as powerful as life itself. That is why we are pleased to offer our support to families during the early stages of their little one’s life. The newborn care package we provide will serve as a small token of support to families, reaffirming that in Olaine, the capital of Latvian pharmaceuticals, every new resident is warmly welcomed, and there is a supportive environment for them to grow and fulfill their dreams,” says Juris Bundulis, Chairman of the Board at Olainfarm.

On average, around 200 newborns are registered in the Olaine municipality each year. The total population has also been increasing annually, with approximately 2,000 new residents since 2017, reaching a population of 21,600 by the end of 2022. This positive trend is driven by both an increase in births in the Olaine municipality and the creation of new job opportunities, which encourage people to move to Olaine. Additionally, various support measures for families, including family-friendly infrastructure for living, education, leisure activities, and resident-oriented services, contribute to this positive trend.

“The Olaine municipality has proven to be a family-friendly municipality, providing a supportive environment for families in terms of well-developed infrastructure and attitudes. Families are supported with a one-time childbirth allowance of 300 or 400 euros, and each newborn receives a special gift, a silver coin, crafted by Latvian artisans. We are gratitude to Olainfarm for creating the opportunity to provide the first baby care packages to little Olaine residents,” says Līga Gulbe, Deputy Chairperson of the Olaine Municipal Council.

“It has been almost five years since we moved to Olaine, and we highly appreciate the support available to families and the convenient infrastructure. We are also delighted with the new initiative and the baby care package provided by Olainfarm, as it not only demonstrates that we are welcomed and valued in Olaine but also contains useful items for baby, which will also benefit our family budget,” say Anastasija and Aleksandrs Vilemsons, whose family already includes a daughter, and they welcomed their son Toms at the beginning of June, making him the first registered newborn in the Olaine municipality to receive the baby care package provided by Olainfarm.

As a family-friendly company, Olainfarm also supports its employees who become parents of newborns. In addition to the childbirth allowance of 250 euros, the company’s employees will receive a baby care package for their newborns. Olainfarm provides various other benefits for employees with families, including additional holidays and bonuses for significant events in children’s lives.

Continuing the company’s development and focusing on Western markets, JSC “Olainfarm” has obtained the marketing authorization for a new medicine used in urology and successfully submitted several cardiological and anti-inflammatory products in decentralized procedure (further – DCP) in 2023. This will allow JSC “Olainfarm” to significantly expand its product portfolio in areas of relevance to European citizens’ health. The DCP submission has been initiated in a total of 10 European Union (EU) countries.

JSC “Olainfarm” has already finalized the DCP and obtained the marketing authorization for the new antibacterial urological preparation in five countries – Latvia, Lithuania, Estonia, the Czech Republic, and Slovakia. Two cardiological products – a hemostatic agent and an antithrombotic agent – have been submitted for registration in 10 EU Member States: France, Spain, Italy, Germany, Poland, Latvia, Lithuania, Estonia, the Czech Republic, and Slovakia. Meanwhile, the registration of a serum lipid modifying agent is under way in Latvia, Lithuania, Estonia, France, Slovakia, and Spain. The DCPs for an anti-inflammatory, anti-rheumatic and endocrine therapy product have been initiated in nine countries (Latvia, Lithuania, Estonia, Poland, Germany, Spain, Italy, the Czech Republic, and Slovakia).

““Olainfarm” aims to become one of the top-10 pharmaceutical companies in Europe in the next five years, offering medicines in key areas of public health. Cardiovascular disease is the leading cause of death worldwide, creating a growing demand for cardiological products. Also, in the context of high incidence of prostate cancer and urinary tract infections, interest in urology products is increasing. The development and registration of new products on international markets in these therapeutic areas is an important step towards strengthening the company’s position on Western markets. At present, the “Olainfarm” portfolio includes over 60 finished dosage forms and 25 active substances – the basis of pharmaceutical raw materials. By using them to produce new finished pharmaceutical products, we will gain greater independence from market volatility and supply chain disruptions,” says Juris Bundulis, Chairman of the Board of JSC “Olainfarm”.

In the pharmaceutical industry, launching the production of new drugs takes several years, which is why in accordance with its long-term development strategy, JSC “Olainfarm” plans to develop and make products that will be needed and in demand also in the future, placing the emphasis on pharmaceutical products whose patent protection expires in the coming years. The company plans to offer them on the Baltic, European, and possibly also on the American market. At the same time, attention is being turned also to Central Asian countries – Kazakhstan, Turkmenistan, Uzbekistan, which are markets showing a positive dynamic.

As part of the ambitious EUR 100 million investment plan approved by JSC “Olainfarm” shareholders, it is planned to invest almost EUR 32 million in the company’s development in the coming years: development and registration of new products, modernization and expansion of production, digitalization, acquisition of new equipment and technologies, upgrading of the IT system and other activities. The aim of the investment is to significantly increase the company’s production capacity and export potential in Western and Asian markets, so that it became one of the 10 leading pharmaceutical companies in Europe in the next five years.

In the annual Sustainability Index, experts have highly evaluated the performance of JSC Olainfarm in areas such as corporate governance, environmental impact, investments in society and the working environment, as well as investments in the development of the industry and the country, awarding the Gold category for the second year in a row.

“One of JSC Olainfarm’s priorities over the past two years has been to implement transparent and effective corporate governance practices that help the company achieve its strategic goals and invest in new product development, research and the development of export markets. Gold in the Sustainability Index is a natural testament to the sustainability of our operations and our social responsibility towards our employees, the environment and society as a whole. We continue to invest heavily in both production expansion and green energy projects to play an even more active role in achieving our climate neutrality goals. We will also continue to invest in our employees and in improving working conditions, as well as in initiatives and social projects that are important for the whole society,” says Juris Bundulis, Chairman of the Board of JSC Olainfarm.

Olainfarm marked 2022 as a year of sustainable development and implemented a number of initiatives to make the company more sustainable and continue to grow. Along with the establishment of the Science and Research Centre and the improvement of the corporate management system, last year Olainfarm, in cooperation with foreign experts, implemented an emergency management model ahead of global standards, which was tested together with operational services in Latvia in the most ambitious emergency drills to date earlier this year, confirming the readiness of the company and services.

Alongside the improvement of the company’s internal processes, compensation for the increase in electricity prices was added to the basket of employee benefits, amounting to €80,000 per month in additional support, which was provided for a total of six months. Support measures, stable and motivating working environment, competitive remuneration and a basket of benefits provided by the company continued to ensure a high level of employee loyalty, as evidenced by the annual employee survey, in which almost 80% of Olainfarm employees admitted that they are fully satisfied with their work at the company.

Last year, Olainfarm continued to support the most outstanding pharmacy students at Riga Stradiņš University with scholarships and this year established a scholarship for future chemistry teachers, committing to invest EUR 75,000 in the support of 25 teachers over the next five years to promote the development of the chemistry and pharmaceutical industry and make a targeted contribution to initiatives of importance to society.

At the same time, the contribution to strengthening people’s mental health has been significant, including support for the establishment of the Sensorais Džims gym at the Latvian Children’s Support Center’s social rehabilitation center. Olainfarm also ran a social campaign, using animated videos and educational materials to explain emotions and ways to cope with them to children and their parents in order to reduce the behavioral problems faced by many families in Latvia. In the dark time of the year, people were also cheered up with wellness tips and advice available in the city and on the internet.

Contributing to climate neutrality goals, developing the use of green energy in the company’s energy supply and at the same time improving the energy supply infrastructure, in the coming years Olainfarm will install the most advanced chemical and pharmaceutical wastewater treatment plants in the Baltics and build a solar panel park with a total capacity of 3.2MWh. The new equipment will treat up to 5000 m³ of municipal and industrial wastewater per day and will help to reduce the total volume of wastewater to be treated, increasing the energy efficiency of the process. The planned investments are part of Olainfarm’s journey towards its ambitious goal of becoming a European Top 10 company in its product categories by 2027, with at least €100 million of investment backed by shareholders.

Olainfarm participated in the Sustainability Index for the second year. Repeatedly winning the Gold category is a significant achievement, demonstrating the company’s sustainable operations and management. It is particularly noteworthy that in fourteen years, only three companies have achieved a Gold rating, participating in the Sustainability Index for the first time. The Sustainability Index is a strategic management tool based on an internationally recognized methodology.

The leading pharmaceutical company in Latvia Olainfarm AS will increase export volumes in new markets by at least 80% in the next five years by introducing at least 10 new products into production, increasing production capacity and making large investments in research and development. In June 2023, Olainfarm AS concluded an agreement with the Development Financial Institution ALTUM and SEB Bank for co-financing in the state support program “Investment loans for large and medium-sized merchants with a capital discount for the promotion of competitiveness”, which provides for a total of 31.75 million euros to be directed for such purposes.

“The economic security and development of Latvia is vital for us to be able to respond both to the current challenges in the world and to use the growth opportunities in the future, raising the general welfare level of the society. Olainfarm is an important player in the Latvian pharmaceutical industry and shows by its example that modernization, new products, new export markets, investments in energy efficiency and a well-considered increase in production capacity, combined with healthy ambitions and state support, create an excellent platform for growth of the company and through this also for a faster breakthrough of the Latvian economy,” says Ilze Indriksone, the Minister of Economy.

“Latvia is the only country in the Baltics that can truly be proud of a strong and global level pharmaceutical industry. That is our value and also an opportunity to be used. The goal of Olainfarm is to become a TOP10 European pharmaceutical company in its product groups, providing patients with necessary medicinal products and products at all stages of healthcare. Therefore, with the support of our shareholders and also state programs, we work very purposefully both on the development and registration of new products in new export markets, as well as on the modernization of production and the increase of energy efficiency, in order to promote the long-term development and competitiveness of not only our economy, but also the economy of Latvia globally,” emphasizes Juris Bundlis, the Chairman of the Board of Olainfarm AS.

The major investment project “Investments for the introduction of new products in production for the diversification of the market and the development of “green” technological processes” provides for investments in several directions, including new production lines, research, development and implementation of new products in production, modernization of laboratories, increasing export volumes, increasing energy efficiency and in the implementation of renewable energy technologies. Currently, the product range of Olainfarm AS includes more than 100 different products and intermediate products, but the goal is to introduce at least 10 new products into production with the help of the ALTUM programme and increase the production capacity by at least 20%, almost doubling the export volume. Besides, at least 65 highly qualified jobs will be created, almost half of which will be in the field of research and development.

““The purpose of the large investment project support program is to stimulate the implementation of projects important for the Latvian economy, therefore, we are pleased to finance the next step in the growth of Olainfarm, which will allow the company to produce new high-added-value products in a modern and sustainable production facility, increase production capacity and export volume. Olainfarm is an excellent example of how the company promptly adapts to the new geopolitical situation, focusing itself to new export markets and even increases its growth ambition in the new conditions. In general, the amount of loans approved in the programme has already reached 70 million euros, which will help to implement new, large investment projects in woodworking, printing, furniture production and other areas. ALTUM also provides loans with a capital discount, which is an attractive financing solution for entrepreneurs, in four European Union Recovery Fund programs aimed at energy efficiency, digitalization and the construction of affordable rental housing,” indicates Reinis Bērziņš, the Chairman of the Board of ALTUM.

As part of the program, at the beginning of next year, by investing 11.29 million euros, Olainfarm AS will also start the construction of a new, the most modern chemical and pharmaceutical wastewater treatment facility in the Baltics. The main goals of this project are to reduce the amount of wastewater to be treated, increase efficiency, automate the wastewater treatment process and its control, as well as separate rainwater treatment from domestic and industrial wastewater.

In addition to investments in production and product development, Olainfarm AS also invests in green energy projects, energy efficiency and energy independence, contributing to the achievement of climate neutrality goals. Work on the creation of a solar panel park will begin already in this summer in the territory of Olainfarm AS with investments of 3.3 million euros. The area of it will be ~4.2ha and the installed capacity will be up to 3.2MWh per year. Solar energy will provide up to 40% of the company’s average annual electricity consumption, and up to 80% in the summer season. Besides, the reconstruction of heating networks and steam networks will be carried out in the value of more than 3 million euros, reducing heat losses. At the moment, work is continued to create a liquefied gas connection in order to diversify primary energy sources and increase the security of the company’s energy supply and the continuity of production processes.

The company also plans to invest in other projects, such as digitization, productivity and development of quality control laboratories, product registration in new markets and the clinical trials required for this, as well as in the development and production technologies of new active pharmaceutical substances and finished medicine dosage forms. The volume of investments in investment projects already approved or being in the development process, including ALTUM’s large investment programme, reaches 40 million euros, but in general, it is planned to invest at least 100 million euros in the development of Olainfarm AS in the next five years.

At the start of June, Minister for Health Līga Meņģelsone made a working visit to one of the leading pharmaceutical companies in the Baltics, AS Olainfarm to discuss current healthcare issues related to healthcare funding, the availability of medicines, as well as the role of clinical pharmacists in the healthcare system and matters involving patient experience. During her visit, the Minister for Health was also introduced to the company’s operations, development targets and investment projects aimed at ensuring that the company becomes one of the TOP 10 pharmaceutical companies in Europe in its product categories during the next five years.

“I highly appreciate Olainfarm’s contribution to the economy, science and promotion of public health. It is our joint task to configure and develop the Latvian healthcare system so that it can provide quality services at all stages. Parallel to improvement in the availability of out-patient services, consolidation of the system of family doctors and development of the hospital network, it is extremely important to raise the prestige of the pharmaceutical profession within society and to highlight its importance to healthcare, because, with their knowledge and skills, these specialists often serve as the first point of support and advice for patients. Here, I see great potential for collaboration with pharmaceutical companies – both in generating interest [among potential chemists and pharmacists] to seek knowledge in the pharmaceutical realm, and in supporting students, who have chosen this professional path,” emphasised Minister for Health Līga Meņģelsone during the meeting.

During her working visit, Līga Meņģelsone met AS Olainfarm’s management and specialists to discuss current issues in Latvia’s healthcare and pharmaceutical industries, and visited AS Olainfarm’s production plant where she was introduced to medicinal product manufacturing, quality control and research& development processes. The Minister for Health was fulsome in her praise of AS Olainfarm’s contribution to the healthcare system as a whole, as well as the economy.

“Latvia is the only Baltic state that can boast such strong pharmaceutical traditions and a well-developed industry. In Latvia, we provide a full medicinal product research, development, growth and supply chain. Thanks to our shareholders, Olainfarm has embarked on a path of fast track development, allocating sizable investments to research and development, our product offering, as well as to the expansion of our export market so that the Latvian pharmaceutical industry can consolidate its place within the European and global market. At the same time, our attention is focused on overall public health and the optimal functioning of the healthcare system, where an important prerequisite is close collaboration between various industry stakeholders and the public sector, always mindful that people and their health and needs are the centre of attention,” commented AS Olainfarm Chairman of the Board Juris Bundulis.

AS Olainfarm’s product portfolio consists of 60 finished dosage forms, 25 active pharmaceutical substances and more than 20 intermediate products, including medicines to improve the functioning of the central nervous system, products for treatment of gastroenterological illnesses, as well as anti-viral, anti-bacterial and anti-allergic agents. The product portfolio is being continually augmented with new products. Currently, the company has approximately 50 finished dosage forms under development, while the medicinal product registration process is taking place in at least 10 new markets.

AS Olainfarm is actively working on the registration of new products in European markets, to which end the parties discussed necessary improvements to cooperation mechanisms so that the process of registering medicines is made smoother and more efficient for Latvian manufacturers. They also discussed the need to include specific mechanisms and instruments in the State Civil Defence Plan in relation to the formation and maintenance of the State’s medicinal product stocks, in order to ensure that patients have access to medicines in situations in which regular supplies could be disrupted.

During the meeting, the parties also discussed the important role played by pharmacists in ensuring the proper functioning of the healthcare system, and the need to support the process of educating budding pharmacists, joining forces to raise the prestige and value held by the profession in the minds of the public, because pharmacists are often the first point of contact for patients. The discussion also highlighted issues related to the availability of personnel and qualified specialists, along with the education system’s ability to respond and prepare the specialists required by the market. In order to generate interest in chemistry among schoolchildren, during the next five years AS Olainfarm will invest EUR 75,000 to support chemistry teachers by awarding them special scholarships. Likewise, for the past 13 years, in cooperation with the RSU Graduates’ Association, AS Olainfarm has awarded scholarships to pharmaceutical students, as well as collaborating with other educational institutions, in order to encourage and support chemistry learning and interest in the subject. The company is also making considerable investments in automation and production modernisation.

Three 4th year pharmacy students of Riga Stradins University (RSU) – Anete Vircava from Salaspils, Anna Novosada from Daugavpils and Jūlija Gurinoviča from Ventspils – have received the EUR 1400 scholarship provided by the pharmaceutical company Olainfarm AS in the annual competition. Olainfarm has been awarding the scholarship to the brightest pharmacy students for the 13th year to promote excellence in the Latvian pharmaceutical industry.

“Knowledge of pharmacy gives young people fantastic career opportunities – from the highly responsible work of a pharmacist in a pharmacy, to jobs in science, drug registration and the development of new medicines. Getting young people interested in pharmaceuticals is extremely important for the development of the pharmaceutical industry and for the overall health of society, as pharmacists are often the first people we turn to when we have signs of illness or want to improve our health. That is why I am happy for every pharmacy student and especially pleased with their outstanding achievements in their studies, which will help to promote excellence in the Latvian pharmaceutical industry,” says Juris Bundulis, Chairman of the Board of Olainfarm AS.

All three scholarship holders, who have an average grade above nine, are attracted to the wide range of work and research opportunities in the pharmacy profession. Their interest in the sector comes from their families as they have relatives working in healthcare.

Anete Vircava, a 4th year student from Salaspils, says that she relies mainly on logical thinking and understanding in her studies. She was fascinated by chemistry and biology in high school, and her older brother, who also studied in the same field, also developed an interest in pharmacy. The choice was also driven by a desire to help people. Anete admits that she is currently most interested in working in the laboratory, so she is delighted to have the opportunity to do an internship at Olainfarm in the near future, which will allow her to get to know the drug manufacturing process even better, especially research, and will also help her decide which area to specialise in. Alongside her studies, she has already gained her first research experience, working with colleagues at the Department of Pharmaceutical Chemistry at RSU on a new method for sterilising drug-containing hydrogels. She also gains practical experience by combining her studies with her work as a senior laboratory assistant at Riga Stradins University.

Anna Novosada, a 4th year pharmacy student from Daugavpils, is not only a high achiever in her studies, but is also an active member of the Latvian Association of Pharmacy Students and represents the interests of local students in Europe. Anna’s interest in pharmacy dates back to her childhood, as her mother was a pharmacist. Alongside her studies, Anna works as a laboratory technician in the Pharmacology Laboratory at the Institute of Organic Synthesis, where she has recently conducted research on the role of the Sigma-1 receptor in the development of brain dysfunction after head injury. For this research, she won first prize at this year’s Pharmacology Student Conference as part of the RSU Research Week event supported by Olainfarm. She plans to continue with doctoral studies, combining them with work as a pharmacist in a pharmacy. She has no doubt that she will be able to do it, as she is already successfully combining laboratory work with her studies.

Jūlija Gurinoviča, a 4th year student from Ventspils, has been interested in healthcare since childhood, inspired by her mother – a family doctor. Jūlija is already combining her studies with her work in pharmacy. She is pleased that, despite still being a student, she has managed to gain people’s trust and they are happy to turn to her for advice. She has worked both in a pharmacy in Ventspils and in pharmacies in Riga, concluding that empathy is very important in a pharmacist’s work. She believes that the pharmaceutical profession and pharmacists’ extensive knowledge of medicines, their effects, their use and their preparation is generally undervalued by the public.

Olainfarm has been awarding scholarships to students of the Faculty of Pharmacy at RSU since 2011. The scholarship competition is organised jointly with the RSU Alumni Association, assessing both the grades of young pharmacists and students’ performance in research and science. The aim of the scholarship is to financially support the most talented students and to give them the opportunity to explore career opportunities in industry and business during their studies. Olainfarm awards three scholarships each year to final year students of the Faculty of Pharmacy at RSU, as well as provides internship opportunities. Scholarship holders are selected competitively, with an average grade above 7.5.

To promote the development of the chemistry and pharmaceutical industries, Olainfarm has also created a scholarship for future chemistry teachers, which was awarded for the first time this year. Olainfarm will invest €75,000 over the next five years to support young chemistry teachers.

Today, 13 April, AS Olainfarm’s first grants were presented to budding chemistry teachers. In order to encourage the industry’s development from school level onwards, and with the aim of fostering kids’ interest in learning chemistry, and to support budding chemistry teachers, the company will invest EUR 75,000 for the next five years, with each of the 25 best chemistry teachers being awarded a one-time scholarship of EUR 3,000. The first three scholarship recipients are students from the University of Latvia: Marija Kramorenko from Riga, Vika Viktorija Kreitāle from Liepaja and Mārtiņš Mārcis Pavļukovskis from Dobele.

According to the Ministry of Education and Science’s statistics, at the start of the 2021/2022 academic year, there were 77,000 students in Latvian higher education institutions. Of these, only 10% are studying natural sciences, mathematics and information technology, and only 6.6% have chosen educational science. Moreover, the number of students in education-related sciences is tending to decrease.*

“Although we don’t know which professions will be required in five or 10 years’ time, we do know which skills taught at school will be required. Accordingly, teachers play a crucial role in helping young people to adapt and navigate a fast changing environment. How can we get children interested in teaching chemistry, how can we make this science interesting so that young people are inspired to continue along the path of science and chemistry, which is in great need in many professions? The development of the teachers’ programme is among the cornerstones of education policy, because by investing in teachers, we develop society as a whole, so that Latvia is more knowledgeable and capable. Thank you to Olainfarm, who have proposed this scholarship initiative, and I hope that other companies will follow their example by supporting teachers, increasing the prestige of teachers within society and give them light, so that teachers can pass this light onto us,” asserted Minister for Education and Science and the Scholarship’s Patron Anda Čakša.

Since an insufficient number of young people are graduating from Latvia’s universities with degrees in exact sciences, and since an examination in chemistry in not among the most frequently chosen options in schools, this has a detrimental impact on the development of science, as well as on the job market. One of the keys to getting youngsters interested in any teaching subject is a passionate and capable teacher.

“Only inspiring, knowledgeable and motivated chemistry teachers can nurture interest in chemistry and the desire to learn it. Therefore, Olainfarm’s shareholders have decided to found a scholarship to support prospective teachers, and we are honoured that the Minister for Education and Science is the patron of this project, accenting the national importance of this scholarship. Of course, the development of the chemical industry by nurturing kids’ interest in it while they are still at school, is in the pharmaceutical industry’s interests, but it is also a major contribution to the country’s overall growth. We need to foster youngsters’ interest in exact science subjects, because this is the only way that we can ensure the development of science and innovation in Latvia in the long-term, consolidating entrepreneurship in industries with high added value and boosting our international competitiveness,” says AS Olainfarm Chairman of the Board Juris Bundulis.

Currently, eight young people are studying at the University of Latvia with a view to becoming chemistry teachers. Professor Linda Daniela, Deacon of the University of Latvia’s Faculty of Pedagogy, Psychology and Art is hopeful that Olainfarm’s scholarship will stimulate interest among youngsters in choosing teaching chemistry as a profession.

All three scholarship recipients already knew they wanted to be teachers right from childhood, and acknowledge that inspiring teachers played a major role in motivating them to choose teaching as a profession. Although Rigan Marija Kramorenko will graduate from university this summer, parallel to her studies, she has already been teaching chemistry to the 8th and 9th grades at Riga’s 86th Secondary School for the past two years. In her job as a teacher, she always tries to link the theory of chemistry to real life and believes that every child requires a special approach – this the only way that anyone can learn chemistry. Likewise, although Liepaja native Vika Viktorija Kreitāle will only receive her teacher’s diploma this summer, she has taught chemistry at the Iļguciems Primary School for the past year, where she uses simulations in her teaching work. She derives the greatest satisfaction from the involvement of students, their success, and words of thanks to their teacher. Meanwhile, although Mārtiņš Mārcis Pavļukovskis from Dobele has only completed his fourth semester, he is already teaching chemistry to primary and secondary school classes in Riga 47th secondary school and is also a 10th grade teacher. He derives the most satisfaction from helping struggling pupils who do not understand the subject matter to succeed. He believes that teaching methods should be changed on a regular basis.

Every year the scholarship will be awarded to five University of Latvia students with the highest grades, who have chosen to become chemistry teachers. The next two scholarship recipients will be selected from first year students with the highest secondary school certificate grades.

* Ministry of Education and Science, 2021 Latvian Higher Education Report

Is Latvia ready for various X Hours and would it be able to provide medicines to the public during supply chain interruptions and in the trenches? Pharmacy has a vital role not only in the everyday healthcare, but also in national security, even though pharmaceutical companies would not able to single-handedly provide everything required at X Hour.

“When a terrorist stabbed several police officers in front of London’s Houses of Parliament 10 years ago, none of the people in the vicinity – and there were a lot of them, because there are always a lot of tourists and parliament employees there – knew how to provide first aid. The only exception was a minister, a former British army officer who happened to be nearby. Although we all learn first aid when we learn how to drive, unfortunately these skills lack continuity. Examples like this clearly show that as a society we are not prepared for crisis situations. This was also confirmed by the Covid-19 pandemic, when not only individual people, but entire industries and even governments descended into panic. This lack of readiness for a crisis highlights another problem – people do not cooperate with one another. Each of us lives in our own “work-home” bubble, but this cannot prepare us for medical and other emergencies. This requires extensive public training along with close cooperation between the private and public sectors,” stressed American Enterprise Institute (AEI) senior fellow, Foreign Policy and POLITICO Europe journalist Elisabeth Braw at the AS Olainfarm conference “Health. Security. Pharmacy”.

It is not just businesses that require a detailed crisis plan, so does the state

The importance of cooperation at different levels was also stressed during the discussion “Readiness at X Hour”, in which the participants were the Parliamentary Secretary of the Ministry of Defence Jānis Eglīts, National Health Service Director Āris Kasparāns, Baltic Institute of Corporate Governance CEO Andris Grafs, Latvian Chamber of Commerce and Industry President Aigars Rostovskis and AS Repharm Board Member Jānis Vanags.

For over a year now, the example of Ukraine has provided a harsh example of what happens when society actually experiences X Hour. It is not just soldiers on the front lines or civilians who die during rocket fire, but also people with acute and chronic health problems – simply because neither medicines nor timely health care are available because of the war. However, X Hour is not only war – it can also take the form of natural disasters, widespread epidemics or even pandemics as we experienced with Covid-19, a three-day internet outage that brings a halt to mutual coordination and logistics, and any other circumstances in which supply chains are interrupted, and a business, industry or country is confronted by existential changes that threaten its existence. Moreover, X Hour affects everything – in the medical sector, this is not just stocks of medicines, but also the availability of specialists and infrastructure, transport, deliveries and logistics, etc.

As Repharm Board Member Jānis Vanags underlines: X Hour is what everybody defines for themselves at least a couple of years before it occurs, realizing the implications of this existentially critical situation for his institution or business, and outlining a detailed action plan in such a situation. At present, this country does not yet have such a scenario in place in relation to healthcare and the formation of stocks of medicines. Although there are civil defines plans, there are no clear guidelines on how to act and who would be responsible for stocks of medicines if X Hour actually arrives.

According to Ministry of Defence Parliamentary Secretary Jānis Eglīts, we have a painful, but valuable opportunity to learn from the experiences of Ukraine, and not just in theory, but also in practice, by going to Ukraine and listening to local doctors as they share their experiences. “It is important to realize that when a shrapnel mine explodes, it does not discriminate who it hits, and so, alongside wounded soldiers, a hospital in wartime could find itself treating a little boy who was struck by shrapnel. At X hour, there are no such distinctions as “state” or “private”, “civilian doctor” or “military doctor”. While not every sector would necessarily currently agree, at X Hour we are all in this together, and therefore we should also prepare for this together,” stresses Jānis Eglīts.

Supply chains must be robust enough so that there are no shortages of stocks

The Covid-19 crisis was a good lesson. As the experts acknowledge, in various realms Latvia is currently much better prepared for unforeseen circumstances than it was at the start of the pandemic. A case in point is the infrastructure in which substantial additional funds were invested, or cooperation between public administration and the private sector, which has undeniably improved. However, improvements are not yet in sight in the most vital areas, which are industry’s human resources and supply chain robustness.

Although Latvia is already able to provide a full medicinal product development and supply chain, encompassing high-level education, research and innovation, industrial production and exports, local and regional supply, pharmaceutical care, as well as development of original medicines, local manufacturers’ market share amounts to only about 4% of the range of all medicines available in Latvia. In this regard, we are significantly losing out to Western Europe, where local production makes up 40-60% of the product range, and thus, we are ten times more vulnerable than Western European countries.

As Jānis Vanags underlines, the whole industry is defined by supply chains, “We recall only too well that when the pandemic started, deliveries to Latvia could not take place through Poland for a week. But one does necessarily need to close borders for a risky situation to arise. A shipment of medicines is worth several million euros. It is sufficient to arrange even small hybrid threats along an important delivery route, and while we may forget about them quite quickly, but the insurers will not. By declining to provide coverage for an area deemed to be at risk, no further deliveries will be made. Therefore, it is vital that we are aware of what our material reserves are, how long they will last, and how strong local manufacturers are, in order to be able to provide the requisite quantity and range of medicines in such a situation. Latvia is strong in the realm of food production, where we have a good proportion of local products, but unfortunately this is not true as far as pharmaceuticals are concerned.”

Experts assert that, in order to strengthen the local pharmaceutical industry, it is not only vital to support domestic manufacturers, but to view the situation holistically in the awareness that the energy and raw materials consumed by local pharmaceutical companies to produce their products also come from foreign markets. Accordingly, it is extremely important to build up sufficient stocks and prepare a detailed action plan. However, this requires strong cooperation with public administration.

The state is responsible for decentralization, whereas individuals are responsible for a change in thinking

One of the key security principles at X Hour is decentralization, or “don’t put all your eggs in one basket”. According to National Health Service Director, Āris Kasparāns, at present, stocks of medicines are partly sufficient, because funding was allocated during the Covid-19 crisis for the procurement of three months’ of stocks of the most frequently used medicines, and such stocks have also been built up in a number of hospitals. However, at the same time, Ukraine’s experience demonstrates that at X Hour the biggest blows are often directly inflicted on healthcare infrastructure, and therefore it is crucial to make provision for the storage of reserve stocks outside hospitals, and here, once again, cooperation with the private sector is essential.

“The biggest problem is not stocks of medicines, which, even if they are currently inadequate, can be prepared. Failure to make decisions is much worse. This means not using the time before the crisis to prepare and accumulate strength” acknowledged Jānis Vanags. “But in order to prepare, a decision has to made that these are the reserves that we will require, and which the state will provide for its citizens, and then by means of a tender we’ve got to find a partner within the private sector, who can supply the relevant amount.”

At the same time, the experts also point out that, at present, the primary problem is not the provision of infrastructure, but the way we think. Although it is important to agree on who should be responsible for coordinating the supply of medicines at X Hour, how they should procured and stored, and how to make sure that their shelf life does not expire, and so on; no less important is the extent to which each individual has prepared for X Hour, whether he has helped his family to prepare, and how capable he is helping his fellow citizens in any other situation, for example, by providing first aid.

After a people’s vote, in this year Latvian health sector’s most important event the Annual Awards in Medicine, the title of 2022 Family Doctor of the Year and a special award from AS Olainfarm were awarded to a family doctor from Ogre – Dace Roska. She admits that amidst the difficulty of work, there is also a great deal of satisfaction.

“My biggest thank you and very best words are reserved for Doctor Anita Selezņeva, under whose tutelage I did my residency, and who was my teacher with a capital T, as well as being my second mum. For as long as I can remember myself, all my dolls received medical treatment – this used to be in the form of penicillin from a bottle. All the kids who’ve been ill, remember being injected with penicillin four times a day, resulting in a big collection of bottle. The dolls received them all. I always knew I wanted to be a doctor. I always try to ask my patients something over and beyond their ailments. If I’m told a story about a cat, next time I’ll ask how the cat is doing. Young women come to me, who firstly tell their family doctor, not their mum, that they are pregnant, and ask me what they should do about the pregnancy. Amidst the difficulty of work, there is also a great deal of satisfaction.”

The Latvian health sector’s most important event the Annual Awards in Medicine, held in collaboration with AS Olainfarm, took place for the 13th time.

Emphasising the importance of family doctors within Latvia’s healthcare system, and congratulating the public’s best loved family doctor in 2022, AS Olainfarm Board Member Andris Jegorovs said, “In recent years, the healthcare system has experienced enormous challenges, many of which have rested on the shoulders of family doctors. Our family doctor is the first person we visit if we have any health complaints. For each of us, this is an important relationship that lasts for years. I call on the public of appreciate the work done by family doctors every day, and to say thank you.”

According to patients, Dace Roska does 100 times more than she’s officially required to, putting herself on the line. She is a doctor with a big and generous heart. You can find out more about D. Roska in this video: https://www.youtube.com/watch?v=TiMT7mQ6ies

The Latvian health sector’s most important event the Annual Awards in Medicine took place for the 13th time on 30 March. AS Olainfarm has supported this event since its inception, awarding its own special award to a medical professional in recognition of his or her contribution to the field of healthcare, which is vital importance to the whole of society. This year, Olainfarm’s special award was presented to psychiatrist and the Head of RPNC AC Pārdaugava Dr. Elmārs Tērauds.

The spread of stress-related ailments is rising both globally and in Latvia, propelled by the economic crisis, the prolonged Covid-19 pandemic and the war in Ukraine, as well as various personal crises of a larger or smaller nature. Such domestic occurrences as losing one’s job, family conflicts, divorce, problems with the law, financial losses, business bankruptcy, the inability to adapt to a new environment, and health problems, etc. can result in adaptation disorders, burnout syndrome and other maladies.

It is Olainfarm’s mission to improve public life. Therefore, for several years now, the company has highlighted the importance of mental health within society, accenting this by means of individual campaigns, at the medical conference held last autumn dedicated to the company’s 50th anniversary, and on the digital platform OpenOlainfarm, which offers doctors and for pharmacists the chance to attend lectures remotely in various realms of medicine with a view to fostering further education and certification.

“Health is more than the absence of illness or physical disorders. It is a state of complete physical, mental and social well-being, and mental health is a crucial component of well-being. In other words, the individual is able to fulfil his potential, handle daily stress, adapt to conditions and work productively. We are jointly responsible for taking care of this – by nurturing our own emotional well-being, supporting children, and promptly noticing the problems of our fellow citizens. The past few years have been challenging for medicine throughout the world, striving to find a balance between public wants and needs, and continually adapting to rapidly changing conditions. Objectives are accomplished more easily if one encounters dependable partners along the way. Therefore, this year we have decided to present our special award to psychiatrist Elmārs Tērauds, who is a shining light within Latvian medicine and is making an invaluable contribution to societal well-being, facilitating adaptation to the new reality, and helping to mitigate stress,” says AS Olainfarm Supervisory Council Chairman Jānis Buks.

Olainfarm also presented a special award to the doctor, who won the people’s vote in the category 2022 Family Doctor of the Year.

Speaking during the opening ceremony of Olainfarm’s conference “Health. Security. Pharmacy”, European Commission Executive Vice-President and Trade Commissioner Valdis Dombrovskis stressed that pharmacy is one of the rare industries in which Latvia has succeeded in securing powerful positions within the Baltics, moreover with dominant national capital, but the industry’s future growth is dependent on today’s investments and innovations. The need for major support for the pharmaceutical industry throughout Europe was also emphasised by European Chemical Industry Council Fine Organic Synthesis, Fine Chemicals, Biocides and Resins Clusters Director Maggie Saykali. She pointed out that along with other industry support measures, it is vital to strengthen the European Union’s (EU) pharmacy supply chains and in particular their independence from Asia.

Since 2021, although the sales volume of chemical products in the EU has declined significantly, however, the pharmaceutical industry is still in a much healthier position, revealed European Chemical Industry Council Representative Maggie Saykali. In Latvia alone, the chemical industry is comprised of 275 active businesses, with a total turnover in excess of EUR 700 million, 24% of which is made up of pharmaceuticals. According to Saykali, the world needs and will continue to need medicines – this is due to the aging population and the improved availability of medicines. In the past three years, the prices of medicinal products globally have risen by 16%, and it is anticipated that they will rise by another third during the next five years. However, the reality of the EU pharmaceutical industry is not so rosy – primarily due to the increasing influence of the Asian region, and China and India in particular.

“During the past thirty years, European pharmaceutical companies have outsourced the production of their most popular drugs to Asia. There are various reasons for this including significantly lower production and labour costs, more convenient legal regulation, relaxed environmental protection regulations, etc. Unfortunately, as a result, right now EU medicinal product makers find themselves in a critical situation – only a quarter of the total volume of products is made in Europe. Moreover, along with production processes, the main technologies are also being redirected to other parts of the world. The EU’s global market share has fallen from 53% in 2000 to 33% in 2020, and many key products are no longer made in Europe at all,” warns Maggie Saykali.

The implications for society were illuminated by the Covid-19 period, which laid bare the vulnerability of EU supply chains and demonstrated the need for a powerful strategy to bolster the EU’s autonomy. “A similar situation can be observed in Latvia: thanks to its strong scientific base and traditions, Latvia can already provide a full developmental and supply chain for medicines, incorporating high level education, research and innovations, industrial production and exports, local and regional supply and pharmaceutical care, as well as develop original medicines. However, healthcare products from local manufacturers comprise only 4% of the local pharmaceutical market. Increasing the market share of local medicinal product makers tenfold would make it possible to reinforce national security and the availability of vital medicines to the Latvian public,” acknowledged AS Olainfarm Chairman of the Board Juris Bundulis.

“Both the availability of the most important raw materials and production capacity must become the main aspects in the EU’s plan to consolidate the autonomy of pharmaceutical supply chains. We need powerful financial policies and administrative support mechanisms to relocate supply chains back to Europe, and to bolster the local pharmaceutical industry. However, to accomplish this, this unified approach is required throughout Europe,” explains Maggie Saykali. “During the past three years, we have repeatedly challenged EU decision-makers to find solutions, to turn the situation around by 180 degrees, and to create a Europe-based, strong, innovative, internationally competitive and sustainable pharmaceutical supply chain. We must prevent the further drainage of knowledge and production processes away from Europe and support local producers with investment in the construction or modernization of production plants, along with the introduction of sustainable production technologies.”

According to Saykali, these solutions must not be delayed – they are needed now: “As of yet, the pharmaceutical strategy proposed by the European Commission and the European Parliament in 2020 has not provided specific solutions. A sustainable and flourishing industry cannot be built on a weak supply chain, so all need to talk about this together. This is the only way can we guarantee that European citizens will have access to safe and reliable medicines at x hour.”

Advancing the company’s development and continuing its reorientation to western markets, with a planned investment of EUR 100 million over the next five years AS Olainfarm’s shareholders are supporting the development of the company’s product portfolio, modernization of its production equipment and increased capacity for the introduction of new products, along with the development of “green” technological processes. The company’s objective to become one of the 10 most important pharmaceutical companies in Europe in the next five years, significantly increasing the range of products on offer and their production volumes.

Bearing in mind the trends in the spread of diseases and the possibilities for their treatment, it is neither useful nor economically viable to produce medicines for just one market. Although the market for Latvian medicines is comparatively small, national pharmaceutical companies must play a much greater role in providing patients with the medicines they require. Increasing the volume of local medicines is also a matter of national security, so that in emergency situations, where supply chains are disrupted, as during Covid-19, the public is not left without medicines of lifesaving importance. By developing new pharmaceutical products and increasing their production volume, we will not only become more independent of market fluctuations and disruptions in logistics chains, but we will also quickly reorient ourselves to new markets,” stresses AS Olainfarm’s Chairman of the Board Juris Bundulis.

These major investments will be directed towards the development of new products, bolstering the company’s competitiveness, the modernization of its production equipment, constructing new active pharmaceutical substance production lines and a solar park, as well as the reconstruction of electrical networks, heating supply and technological steam networks, and wastewater purification systems.

“Olainfarm’s 50th anniversary has come at a difficult time – following on the back of the Covid-19 pandemic and during the war started by Russia in Ukraine. Russia is responsible for disrupting supply chains and manipulating the energy market, which also affects the pharmaceutical industry. During this period, it is not easy to secure investments for this region as national funding priorities have changed in favour of aspects of security. Therefore, it is especially gratifying that the company has been able to mobilize funds for investments – both securing its own funds, as well as funding from European Union funds and the European Economic Recovery and Resilience Facility. It is vital for Latvian businesses to secure a foothold in European Union markets and to contribute towards improving the robustness of Latvia’s economy so that the pharmaceutical industry increases the country’s readiness in the face of potential threats and crisis situations,” said European Commission Executive Vice-President and Trade Commissioner Valdis Dombrovskis.

In the immediate future, Olainfarm plans to significantly expand its presence in both European and Asian export markets, entering new market regions with finished medicines, as well as continuing to supply active substances and their intermediate products to international pharmaceutical companies. Development is planned in all realms of vital importance to public health.

“Health. Security. Pharmacy”, the first major conference in Latvia devoted to the importance of healthcare and the pharmaceutical industry to the national economy, took place on 9 March with the participation of leading decision-makers and experts. At this conference marking AS Olainfarm’s 50th anniversary, it was concluded that healthcare and the pharmaceutical industry can contribute to the national economy and security through investments in human capital and health, and that the readiness of the healthcare and the pharmaceutical industry at X hour is a prerequisite for economic stability.

“Compared with the situation globally, the advantages of the Latvian pharmaceutical industry lie in its outstanding scientific base, strong traditions and priceless innovations. Right now, in Latvia, we already provide a full developmental and supply chain for medicines, incorporating high level education, research and innovations, industrial production and exports, local and regional supply and pharmaceutical care. We have the capability to develop original medicines. However, this requires much more synergy between the medical community and the public, education, science, producers and decision-makers. The availability of medicines has become an issue not only of public health, but also of national security. Therefore, we have invited all the relevant parties to convene at this conference, and I am gratified that we succeeded in initiating such a comprehensive discussion on matters of vital importance to the industry and the national economy,” said AS Olainfarm Chairman of the Board Juris Bundulis.

Pharmacy proved itself to be a fundamental industry during Covid-19, when one virus was able to paralyse the whole world, freeze the economy, and bring trade and to a standstill. Now too, in the shadow of war, the availability of medicines is vitally important.

Among the conference participants were the Minister for Health Līga Meņģelsone, European Commission Trade Commissioner Valdis Dombrovskis, the Republic of Latvia’s Minister for Economics Ilze Indriksone, Minister for Education and Science Anda Čakša, American Enterprise Institute (AEI) senior fellow, Foreign Policy and POLITICO Europe journalist and author of several books Elisabeth Braw, the Ministry of Defence’s State Secretary Jānis Garisons and European Chemical Industry Council Fine Organic Synthesis, Fine Chemicals, Biocides and Resins Clusters Director Maggie Saykali. Also present were Ombudsman Juris Jansons along with health sector experts including Latvian Medical Association President Ilze Aizsilniece, Vice-President of the Association of Rural Family Doctors, family doctor Ainis Dzalbs, Pauls Stradiņš Clinical University Hospital Institute of Science Director, University of Latvia Vascular Surgery Professor and LAS academic Dainis Krieviņš, Centre for Disease Prevention and Control Infectious Disease Risk Analysis and Prevention Department Director Jurijs Perevoščikovs, National Health Service Director Āris Kasparāns, Children’s Clinical University Hospital Chairman of the Board Valts Ābols, and pharmaceutical industry representatives: AS Olainfarm Chairman of the Board Juris Bundulis and Repharm Board Member Jānis Vanags. At the conference, the realm of science was represented by Latvian Academy of Sciences’ President Ivars Kalviņš and Institute of Organic Synthesis Director Osvalds Pugovičs. Speakers on the subjects of economics and  exports included SEB Bank Economist Dainis Gašpuitis, Latvian Chamber of Commerce and Industry President Aigars Rostovskis, Employers’ Confederation of Latvia President Andris Bite, Altum Chairman of the Board Reinis Bērziņš, Deputy Director in Charge of Exports, Investment and Development Agency of Latvia Iveta Strupkāja, Baltic Institute of Corporate Governance CEO Andris Grafs, and Stockholm School of Economics in Riga Professor and Centre for Sustainable Business Director Arnis Sauka.

Today, 9 March, “Health. Security. Pharmacy”, the first major conference devoted to the importance of healthcare and the pharmaceutical industry to the national economy, is taking place with the participation of leading decision-makers and experts. During the conference’s opening ceremony, European Commission Executive Vice-President and Trade Commissioner Valdis Dombrovskis stressed that the conference is being held at an important time, with industry experts joining policy-makers in seeking solutions to the industry’s problems, as well as future opportunities to invest in the development of innovative medicines.

In his address to conference participants, the commissioner reminded them that the Latvian healthcare sector has high added value built on knowledge. Pharmacy is one of the rare industries in which Latvia has succeeded in securing powerful positions within the Baltics, moreover with dominant national capital. At the same time, the industry’s future growth is dependent on today’s investments and innovations.

““Olainfarm’s 50th anniversary has come at a difficult time – following on the back of the Covid-19 pandemic and during the war started by Russia in Ukraine. Russia is responsible for disrupting supply chains and manipulating the energy market, which also affects the pharmaceutical industry. During this period, it is not easy to secure investments for this region as national funding priorities have changed in favour of aspects of security. Therefore, it is especially gratifying that the company has been able to mobilize funds for investments – both securing its own funds, as well as funding from European Union funds and the European Economic Recovery and Resilience Facility. It is vital for Latvian businesses to secure a foothold in EU markets and to contribute towards improving the robustness of Latvia’s economy so that the pharmaceutical industry increases the country’s readiness in the face of potential threats and crisis situations,” said Valdis Dombrovskis.

In her address, Minister for Health Līga Meņģelsone pointed to the need for close cooperation: “Striving for excellence, negotiating developmental paths and overcoming obstacles, it is vital to stop and look around. I am convinced that during the course of the conversations and discussions taking place today, new collaborations, ideas and project will be born.”

“Compared with the situation globally, the advantages of the Latvian pharmaceutical industry lie in its outstanding scientific base, strong traditions and priceless innovations. Right now, in Latvia, we already provide a full developmental and supply chain for medicines, incorporating high level education, research and innovations, industrial production and exports, local and regional supply and pharmaceutical care. We have the capability to develop original medicines. However, this requires much more synergy between the medical community and the public, education, science, producers and decision-makers. The availability of medicines has become an issue not only of public health, but also of national security. Therefore, we have invited all the relevant parties to convene at this conference in the hope that we can find answers to important questions,” said AS Olainfarm Chairman of the Board Juris Bundulis.

Among the conference participants will be the Republic of Latvia’s Minister for Economics Ilze Indriksone, Minister for Education and Science Anda Čakša, American Enterprise Institute (AEI) senior fellow, Foreign Policy and POLITICO Europe journalist and author of several books Elisabeth Braw, Ministry of Defence’s State Secretary Jānis Garisons, European Chemical Industry Council Fine Organic Synthesis, Fine Chemicals, Biocides and Resins Clusters Director Maggie Saykali. Also in attendance will be Ombudsman Juris Jansons, as well as health sector experts including Latvian Medical Association President Ilze Aizsilniece, Vice-President of the Association of Rural Family Doctors, family doctor Ainis Dzalbs, Pauls Stradiņš Clinical University Hospital Institute of Science Director, University of Latvia Vascular Surgery Professor and LAS academic Dainis Krieviņš, Centre for Disease Prevention and Control Infectious Disease Risk Analysis and Prevention Department Director Jurijs Perevoščikovs, National Health Service Director Āris Kasparāns, Children’s Clinical University Hospital Chairman of the Board Valts Ābols, pharmaceutical industry representatives: AS Olainfarm Chairman of the Board Juris Bundulis and Repharm Board Member Jānis Vanags. At the conference, the realm of science will be represented by Latvian Academy of Sciences’ President Ivars Kalviņš and Institute of Organic Synthesis Director Osvalds Pugovičs. Speakers on the subjects of economics and  exports will include SEB Bank Economist Dainis Gašpuitis, Latvian Chamber of Commerce and Industry President Aigars Rostovskis, Employers’ Confederation of Latvia President Andris Bite, Altum Chairman of the Board Reinis Bērziņš, Deputy Director in Charge of Exports, Investment and Development Agency of Latvia Iveta Strupkāja, Baltic Institute of Corporate Governance CEO Andris Grafs, and Stockholm School of Economics in Riga Professor and Centre for Sustainable Business Director Arnis Sauka.

The number of sugar diabetes patients in Latvia is growing and is approaching the 100,000 boundary. In order to encourage the use of safe and correct medical equipment regardless of patients’ financial situation, as part of its Chronic Patient Support Programme, from 5 March the AS Olainfarm group company Latvijas aptieka will launch a special Diabetes Patients’ Support Programme. This will allow any diabetes patient to receive a package once a month free of charge containing the corresponding size of insulin needles (4 mm, 6 mm, 8 mm, 30 G, 31 G, 32 G) at any of this chain’s pharmacies.

According to data from the Health Statistics Database, in 2021 the number of registered diabetes patients per 100,000 inhabitants rose by almost 18% compared to 2020. The costs of diabetes treatment and medication are also rising, but high inflation and challenging financial situations prompt many diabetic patients to use the same devices, i.e. repeated use of insulin needles, creating additional risks to your health.

“Although the term “well-being” has entered public use quite recently, we can safely assert that we have been using it for a lot longer as part of our patient care and support programme. Day-to-day, in dealing with patients, we witness various situations and actions that do not promote well-being, but, quite the opposite, reduce it. We are confident that with the launch of the new diabetes patient support programme, we will be able to improve patients’ quality of life, and at the same time help them to save money,” says SIA Latvijas Aptieka Chairman of the Board Alvis Ērglis.

Latvijas aptieka’s Chronic Patient Support Programme is a non-commercial project, under the auspices of which both pharmacists and the public are educated. It includes support programmes for patients with diabetes, stoma, multiple sclerosis, asthma, rare diseases, as part of which there is regular and active communication not only with specialists and pharmacists, but also with NGOs, governmental and municipal bodies, patient organizations, patients themselves and their family members.

In order to facilitate the further education and certification of Latvian healthcare specialists, since 2020 AS Olainfarm has been developing a digital platform: OpenOlainfarm, which provides doctors and pharmacists with the opportunity to remotely attend over 70 lectures in medical fields such as allergology, gynaecology, infectology, cardiology, psychiatry/neurology and urology, as well as educational lecture cycles at the School of Arrhythmia, School of Acetylcholine and the Academy of Emotions. Over a three year period, investments totalling over EUR 100,000 have been made in the project.

Right now, over 4,000 Latvian healthcare specialists use the OpenOlainfarm platform for training purposes. A wide range of specialists benefit from the platform. Representatives of 87 different specialties have registered on it, mostly consisting of family doctors, cardiologists, neurologists and pharmacists. Last year the number of registered clients almost doubled. To date, 2,460 further education certificates have been issued.

“The pandemic resulting from Covid-19 demonstrated that successful synergy between scientists, pharmaceutical companies, healthcare professionals and society requires mutual trust, not only between doctor and patient, but also between all industry specialists. By offering contemporary further education content, we are pleased that we can not only boost the professional capacity and knowledge of doctors and pharmacists regarding the world’s most urgent health challenges, but simultaneously highlight the contribution made by patients in attaining results and strengthening the overall health of the Latvian public, ” says AS Olainfarm’s Chairman of the Board Juris Bundulis.

OpenOlainfarm provides the opportunity to attend lecture cycles providing in-depth training in the study of certain therapeutic indications. The portal’s contents and the quality of training are coordinated with the responsible societies and associations representing healthcare specialists, invariably delivering high quality certified content corresponding to further education requirements. Since 2022, the training process has been conducted in a mixed mode, combining face-to-face training with the option to attend events online.

Today, AS Olainfarm’s territory played host to major full-scale training, in order to test an emergency situation management system designed in consultation with foreign experts, as well as cooperation with the national emergency services.

“This was the first time in Olainfarm’s history that the company has taken part in emergency situation training on such a large scale, during which we simulated several potential scenarios. As a chemical substance production company, this experience was extremely valuable and necessary for us, so that we are ready to take action in real life if needs be. Thank you to all the emergency services and to our partners for their involvement in organising and enacting this training,” commented Olainfarm Chairman of the Board Juris Bundulis.

“During the training we simulated the leak of a chemical substance, extinguishing a fire and rescuing victims. Training on this scale with three different threats takes place rarely, therefore this was a particularly valuable experience for the State Fire and Rescue Service (SFRS). Overall, the training went very well and all the assigned tasks were carried out. The training scenario introduced us to the company’s operational specifics, enabled us to practice preventing chemical substance leaks, implementation of pollution scenarios and rescuing people in challenging and hazardous conditions. In the event of an accident, it is vital that each and every one of us knows our tasks in response to gestures and short commands. Training like this helps us to develop these skills,” explained SFRS Olaine Branch Commander Dmitrijs Novikovs.

Building the new emergency situation management system took over a year. Among the institutions involved in this process, in creating the cooperation algorithm and training specialists were the State Fire and Rescue Service, the Emergency Medical Assistance Service, State Police, Ministry of Defence, State Security Service, State Environmental Service, Olaine District Council and Olaine District Municipal Police, Kenyon International, as well as other organisations.

The model introduced by AS Olainfarm is unique in Latvia and surpasses global standards – under one system, it combines risk governance, crisis management and post-crisis recovery modules. The system’s functioning in practice was tested during today’s training in order to attain complete confidence in the company’s readiness to fulfil its functions even in the most challenging situations.

During this special training, which was conducted in conditions and harmless to members of the public and employees alike, the leak of a specific chemical substance was simulated, as well as threats of an explosion with victims. Alarm sirens were activated and tested within the territory of AS Olainfarm, parallel to which, colour smoke candles that are not harmful to human health were used for training purposes. In collaboration with the emergency services, AS Olainfarm also tested the procedure for warning and informing the public in a timely manner.

To reduce the inflation-driven burden of the cost of living, which in December 2022 according to Central Statistical Bureau data was 20.8% higher than a year ago, since November AS Olainfarm has been paying out EUR 80,000 monthly to financially support its employees. The company plans to continue doing so for several more months. These bonuses are only a small portion of the support measures for employees, which have boosted employee loyalty: according to data from the annual employee survey, nearly 80% of Olainfarm’s employees are content with their work for the company.

Olainfarm is not just providing its employees with financial support during this inflationary period, it is also supporting them with a range of different bonuses on a daily basis: health insurance, transport to and from work along the Olaine-Riga-Olaine route, compensation for public transport tickets on other routes, a flexible work schedule for employees who are studying, extra vacations as a reward for length of service and special bonuses for all employees on the public holidays of May 4 and November 18, a five-week summer vacation during the maintenance of Olainfarm’s factory, as well as support for retired colleagues, etc.

The degree to which these bonuses are needed from day-to-day is confirmed by the data from the annual employee survey: 88% of employees feel proud of working at Olainfarm, 80% state that they do not intend to seek a new job elsewhere, and 89% plan to work for the company for at least another two years. Moreover, the company has a large number of long-term employees: 51% of staff have worked at Olainfarm for a decade or more.

“Annual employee surveys are a valuable instrument with which we can ascertain the company’s strengths and highlight areas where there is room for improvement. From the perspective of employees, it is important that they feel valued, know the criteria according to which their work is going to be evaluated, and the same applies to company management. We are proud of the fact that our employees feel as if they have a close connection with the company. This is the result of our deliberate and targeted work in continually investing in the modernization of the business and our employees’ welfare,” says Juris Bundulis, Chairman of the Board, AS Olainfarm.

This year, the factor most highly appreciated by employees is their managers’ empathy and ability to listen. Other key benefits of working at Olainfarm mentioned by the respondents include a modern, employee-friendly work environment and the pleasant internal climate, the option to work remotely, health insurance, congratulating and honouring colleagues on their birthdays, lunch subsidies, and the opportunity to meet colleagues in an informal atmosphere at the joint events organised by the company.

Last year, the annual turnover of AS Olainfarm Group subsidiary – the outpatient medical service provider SIA OlainMed increased by 15%, topping EUR 1 million for the first time in the company’s history. In the past five years since it merged with the AS Olainfarm Group, which invested EUR 1.5 million in the company, OlainMed’s turnover has steadily grown every year, enabling it to end 2022 in profit.

Thanks to AS Olainfarm’s investments, the services that OlainMed provides to patients have significantly improved. Sizable funds have been invested in the modernization and refurbishment of the building, office re-planning, creation of new functions, such as infant rehabilitation and ophthalmology offices, along with a new reception block, streamlining of the call centre, introduction of the first e-solutions and modernization of doctors’ workplaces.

This, in turn, has facilitated an expansion in the range of services and diagnostic options. Moreover, all services are now available to patients in one place, including the refurbished day hospital and dental block, which was previously based in another building. Furthermore, since its merger with the Olainfarm Group, the number of OlainMed’s specialists and medical staff has nearly doubled.

“We are extremely proud of our team. The specialists who work for us remain here in the long-term – 15 years or more, forming a united team and good collaboration between doctors, which is also crucial for patients. When people have problems of a medical nature, it is convenient to resolve them in one place. OlainMed is a comprehensive outpatient facility, which is very convenient for families, because all our specialists also work with children. We also highly appreciate our collaboration with specialists from Ukraine. At present, we have an excellent endocrinologist working for us, which is a tremendous benefit for any regional medical institution, because such specialists are in short supply,” says OlainMed Board Chair Darja Cvetkova.

She acknowledges that pulmonologist’s and rehabilitation services are currently in great demand, which oftentimes is linked to complaints of shortness of breath and increased fatigue after recovering from Covid-19. In addition, it is worth noting that one of the side effects of the pandemic were a sedentary lifestyle. The number of patients with various complications resulting from Covid-19 increased by about a third last year.

In 2023 – in its 30th year in operation – OlainMed plans to develop telemedicine by modernizing offices, systems and purchasing software licenses. This year, AS Olainfarm group will invest over EUR 150,000 euros in the company. Digitalization of doctors’ workplaces will make it possible to serve more patients, including consulting remote patients. The telemedicine service pilot project was implemented by OlainMed during the Covid-19 pandemic. In order to ensure the availability of rehabilitation services in conditions of widespread restrictions, OlainMed’s specialists were one the first in Latvia to provide the therapeutic exercise service remotely. “The initial consultation is conducted in person, because the specialist needs to evaluate and examine the patient. After that, according to the methodology we have developed, services can also be offered remotely, with patient’s attending a control appointment no more than once a month,” says the Board Chair of OlainMed, introducing the new telemedicine service.

“We are delighted with the results achieved by OlainMed, which in recent years has become popular provider of outpatient services in the Zemgale region. The benefits it derives as part of the Olainfarm Group are self-evident, ranging from investments in its development to cooperation between the group’s companies, as a result of which we are better able to help patients. One example is OlainMed’s cooperation with our group company DiaMed, which provides high-class diagnostics, allows patients to get a faster referral for magnetic resonance or other diagnostics and examination results, in order to prescribe treatment faster,” explains Juris Bundulis, Chairman of the Board of AS Olainfarm.

Overall, every year OlainMed provides services to 20,000 patients in Olaines District, but its geographically convenient location and the availability of highly qualified specialists are also appreciated by the residents of Mārupe District, along with the residents of Jelgava District, who work in Riga. In 2022, the number of OlainMed patients rose by over 5% compared to the year before.

About OlainMed

SIA OlainMed provides a broad range of outpatient medical services including cardiovascular functional check-ups, USG, radiography, dental, rehabilitation and physical medicine services, as well as consultations by specialist physicians. The company employs 54 people. In 2021 its audited turnover was EUR 908,835. At the end of June 2017, the AS Olainfarm conglomerate became the owner of Olaine Municipality’s capital company SIA Olaines veselības centrs.

It is no secret that for several months now in Latvia medicines have been in acutely short supply both on the shelves of pharmacies and in hospitals. Why is this? Despite the fact that the Latvian pharmaceutical industry has a lot to offer – an outstanding scientific base, valuable traditions, genuinely high-quality and competitive products, 95% of the pharmaceutical market is comprised of imported products. Challenges involving supply chains and the availability of raw materials globally have a direct impact on foreign manufacturers and inevitably the Latvian public. Better synergy between the medical community and the public, education, science and manufacturers is necessary for quality of life and in order for vitally important medicines to be available both in times of peace and at X Hour.

Choosing local products benefits the health of both the public and the country

In relation to the pharmaceutical industry as a whole, Latvia really does have accomplishments to be proud of. We are the only one of the Baltic States to have such a powerful and competitive pharmaceutical industry. However, in comparison to companies of a similar level and structure in European countries in which local manufacturers’ market share comprises over 40% of the entire range of medicines, in Latvia they make up only around 5%. Of course, illnesses in all European countries are pretty much the same, medicines for their treatment are also similar, and it is no wonder that an extensive range of products is available in pharmacies to treat every malady. However, just like in all industries, there would be greater value in supporting local pharmaceutical manufacturers, which would be of significant benefit to the national economy. So why is it that we are still looking in the direction of foreign medicines? There is no clear answer. Perhaps this is due to a historically ingrained belief that foreign is superior to local, which one can still observe in certain realms. A case in point being the pharmaceutical industry in Latvia, which is unique in the Baltics, and was established during the Soviet era, when medicines produced in the West were in short supply, and it came to be believed that they were the best, because everyone wanted them. At present, the local offering is much broader, in addition to which, in terms of safety, quality and efficiency indicators, medicines made in Latvia are equal to the alternatives made in Western countries. If doctors and the public were to opt for local products, this would benefit the health of both the public and the country. Moreover, by expanding the share of local medicines, the pharmaceutical industry has the potential to become one of the Latvian economy’s driving forces. Developing a market for local medicines is also a matter of national security, so that when X Hour arrives, and supply chains are disrupted, the public is not left without vitally important medicines. The health system’s stability in crisis conditions will not only depend on medicines made in Latvia and flexible local manufacturers who can meet government “orders”, but also on strategic stocks of medicines, which the system has yet to establish in Latvia, through the construction cooperation of the state with Latvian private pharmaceutical companies.

The scientific base is outstanding, but collaboration should be encouraged

From a global perspective, Latvia’s advantage is outstanding science. We have the Institute of Organic Synthesis, Biomedical Research Centre, Rīga Stradiņš University, University of Latvia, Riga Technical University, along with a high-quality scientific base with rich traditions. Pharmaceutical companies in Latvia are continually striving to expand their product portfolios, constantly researching trends and needs, and what the medicines of the future will be like. They are also working to develop original medicines, which is the highest level of pharmacy. At present, however, there is insufficient funding to create original preparations, because these entail comprehensive and expensive research. Nevertheless, we can develop ideas, seek cooperation partners and together bring ideas through to fruition. Pharmacy is an industry with immense added value, which is confirmed by a number of the Ministry of Economics’ benchmarks, and we can be proud of the fact that the industry in Latvia is developing in conditions of inadequate state support.

At the same time, the pool of specialists is limited, because there are a lot of drug manufacturers and accordingly specialists are in high demand. Luring specialists away from competitors is not a good solution, because even if one manufacturer temporarily benefits, the others lose, as a result of which sooner or later problems are bound to arise in the industry. There have been instances in which leading companies intensively outbid one another for their respective specialists, but this is not the best path for development. Therefore, it is vital to train specialists of a certain level in-house. For example, Olainfarm resolves this by offering internships, scholarships, collaborations with universities, which in turn provide assistance at certain stages in the development of products. It is always tough for a Latvian to admit that he does not know how to do something, and to look for help. The industry needs powerful cooperation partners, because this provides the opportunity for learning and the attainment of much better results. The ability to swallow one’s pride and engage partners who have advanced further down the line in certain stages of development would at least partially compensate for the shortage of niche specialists.

What the pharmaceutical sector learned from the Covid-19 crisis

In both Latvia and elsewhere in the world, pharmacy is among the most stringently regulated sectors with exacting requirements and endless laws, rules and regulations. If it were necessary to re-register medicines registered 10 years ago in Europe today, it could not be done without additional research and evidence. However, there is also room for new players in the market, in particular if they can offer something competitive that everybody needs.

The Covid-19 crisis demonstrated that conditions can change very quickly, and that therefore scientists and manufacturers must be able to respond fast to offer new medicines to a great number of people. And, even more importantly, the trust of both medical specialists and the public must be patiently nurtured. Many people questioned the reliability of Covid-19 vaccines because they were developed in a very short space of time and registered at high speed, ostensibly without a sufficient body of evidence. One the one hand, the pharmaceutical industry faced enormous demand, and on the other – a deal of mistrust on the part of the public, which was understandable and only to be expected, because people cannot be blamed for not trusting that which they do not know. If patients cannot get answers to their questions from specialists, they search for them themselves. However, these days a lot of information is available, and the insights that patients find and choose themselves are no longer dependent on industry specialists. In relation to the sudden and dramatic advent of Covid-19 on the global stage, this was the biggest error – insufficient public information. The lesson from this is that not only should trust be strengthened between doctors and patients, but also between industry specialists, in order to together build a flourishing industry and expand the local market, where numerous outstanding products can find their niche.

Olainfarm  є однією з найбільших фармацевтичних компаній  в Латвії та інших країнах Балтії. Продукція компанії поставляється в більше ніж 60 країн. Компанії групи Olainfarm активно долучаються до допомоги українцям, які прибули до Латвії, та тим, хто залишився на Батьківщині.

• Olainfarm підтримала свого партнера в Україні надавши допомогу у розмірі 9 800 000 грн. для того щоб компенсувати втрати і підтримати його роботу в важкий час.
• За підтримки благодійної організації «Олайнфарм» надала гуманітарну допомогу препаратами, які найбільше зараз потребують українці (Адаптол, Нейромідін, Етацизин, Ноофен, Фенкарол) та виробами медичного призначення Tonus Elast (серед яких дуже важливі в реабілітаційний період післяопераційні пояси, фіксатори для суглобів, рук, шиї та ін., еластичні стрічки), дезінфекторами та маски для обличчя, в розмірі 6 800 000 грн.
• Компанія Олайнфарм підтримує медичних працівників з України, які прибули до Латвії як біженці. Минулого року двоє видатних українських хіміків розпочали роботу в новоствореному науково-дослідному центрі АТ «Олайнфарм», а троє лікарів з України приступили до роботи в компаніях групи «Klīnika DiaMed» і «OlainMed». Багато фармацевтів розпочали роботу в аптеках «Latvijas aptieka». Компанії Групи Олайнфам також пропонує роботу для українців, які вимушени покинути Україну: неврологів, терапевтів, ендокринологів, кардіологів, радіологів, ЛОР, стоматологів, хірургів,  операційним медсестрам, медсестрам-анестезіологам, медсестрам-стоматологам, фізіотерапевтам, функціональним медсестрам і амбулаторним медсестрам.
• Працівники компанії в Латвії з гостинністью надали притулок у своїх домівках для біженців з України.
• В аптеках «Latvijas aptieka» адаптовано технічне забезпечення, щоб можна було видавати громадянам України ліки та вироби медичного призначення, які компенсуються державою Латвія.

Olainfarm is one of the largest pharmaceutical companies in Latvia and other Baltic countries. The company’s products are delivered to more than 60 countries around the world. The companies of the Olainfarm group are actively involved in helping Ukrainians who arrived in Latvia and those who remained in their homeland.

• Olainfarm supported the employees of their representative office in Ukraine and provided support in the amount of 9,800,000 hryvnias in order to compensate their losses and support their work in difficult times;
• With the support of the charitable organization Olainfarm provided humanitarian aid with drugs that are most needed by Ukrainians (Adaptol, Neuromidin, Etacyzin, Noofen, Fenkarol) and Tonus Elast medical products (including post-operative belts, joint, neck and arm braces, which are very important during the rehabilitation period etc., elastic bands), disinfectants and face masks, in the amount of 6,800,000 hryvnias;
• The Olainfarm company supports medical professionals from Ukraine who arrived in Latvia as refugees. Last year, two prominent Ukrainian chemists started working in the newly established scientific research center of Olainfarm, and three doctors from Ukraine started working in Klīnika DiaMed and OlainMed – Olainfarm group companies. Many pharmacists started working in Latvijas aptieka pharmacies. Olainfarm Group companies also offer jobs for Ukrainians who are forced to leave Ukraine: neurologists, therapists, endocrinologists, cardiologists, radiologists, ENT specialists, dentists, surgeons, operating room nurses, nurse anesthetists, dental nurses, physiotherapists, functional nurses and outpatient nurses;
• Employees of the company in Latvia hospitably provided shelter in their homes for refugees from Ukraine.
• In addition to creating jobs for Ukrainians in its subsidiary companies, Olainfarm also helps Ukrainian citizens living in Latvia in various ways. For example, in Latvijas aptieka pharmacies, technical support has been adapted so that it is possible to issue medicines and medical products, which are compensated by the state of Latvia, to citizens of Ukraine.

Today, 22 September, the shareholders meeting of AS Olainfarm, the largest pharmaceutical company in the Baltics, endorsed the implementation of a more dynamic strategy with a more concentrated management team, to consolidate itself in Western markets through research and innovation.

Juris Bundulis was appointed Chairperson of the Management Board at AS Olainfarm. In future the Board will operate with a team of three people instead of the four currently, with Andris Jegorovs and Jānis Leimanis working  in their leadership roles alongside the newly appointed Chairperson. Former Chairperson of the Management Board, Jānis Buks, who oversaw the successful transformation of the company from a listed to a private company and set optimization processes in motion, will now head up the company’s Supervisory Board of five members. This type of concentration of company leadership competencies in the Board and Council will allow for the more focused implementation of its strategic development in Western markets, announced late last year, and to invest comprehensively in the research and development of new products.

 “In this new leadership model, I am honoured to be working with professionals in the pharmaceutical, financial, managerial and corporate management areas, who will be creating a new portfolio of products with their teams, expanding market share in Latvia and the whole Baltic region, as well as moving forward in Western European markets. Our goal is to be one of the ten largest manufacturing companies in Central and Eastern Europe in our sector. In our management structure up till now, we have prepared favourable preconditions for achieving our goals, and will be able to deliver on our commitments much better!” points out Juris Bundulis, Olainfarm’s new Chairperson of the Management Board.

Jānis Buks, new Supervisory Board Chairperson: “This year has been a turning point for us – company operations have become more efficient, we have delisted from stock-exchange and thus made our processes less rigid, and prepared the foundations for a dynamic period of development. We have developed a Science and Research Centre, improved our strategic activities, have introduced a world-class emergency response and resilience model, and outsourced nonessential company functions. Through this, we can address our operating activities with high added intellectual and industrial value in a more focused way, thereby building trust of people in the company’s stability and growth!”

The Board – pharmaceutical and management heavyweights

Juris Bundulis has several decades of experience in the leadership of the most important pharmaceutical companies in the Baltics, as well as in the highest level of public administration. Juris Bundulis has previously worked at AS Olainfarm, AS Repharm, AS Grindex, the Ministry of Health, the Ministry of Welfare, and in the scientific research field. Andris Jegorovs has many years of experience in the pharmaceutical field, undertaking management duties at AS Olainfarm and AS Grindeks, managing manufacturing and quality assurance processes, as well as representing the field in the pharmaceutical manufacturers’ association. Jānis Leimanis is a management and financial professional whose experience on boards and supervisory boards has developed over many years in a wide spectrum of companies – AS Olainfarm, SIA Clean R, VAS Latvia State Radio and Television Centre, SIA Rīgas namu pārvaldnieks and others.

The Supervisory Board – corporate management and health care professionals

Jānis Buks, who will now be leading the Supervisory Board of AS Olainfarm, has extensive managerial and corporate management experience at international companies – Luminor Latvija, Nordea, and Uni Credit Leasing. In future, Andrejs Leibovičs, Roberts Tavjevs and Vadims Telica will also be working alongside Jānis Buks on the AS Olainfarm Supervisory Board. Over the last thirty years, they have been strengthening healthcare field in Latvia, creating and developing systemically important private medical, laboratory and pharmaceutical companies that are vital for local communities.

About AS Olainfarm

AS Olainfarm is one of the largest companies in the Baltic states with 50 years of experience in the manufacturing of medicines and chemical pharmaceutical products. The company manufactures reliable and effective products of the highest quality for Latvia and the rest of the world. The company achieved consolidated turnover of 105.5 million euros in its group in 2021. The company employs 840 people delivering continuous 24/7 product manufacturing process.  AS Olainfarm achieved the Gold Category in the Sustainability Index and has been ranked as a family friendly company.

Further information – www.olainfarm.com

“Clinic DiaMed” plans to invest 1.5 million euros in extending the magnetic resonance imaging (MRI) service by the end of the year. During the development project, the clinic expects to purchase the second MRI machine and to adjust the premises, which will help patients to receive this highly requested service faster without waiting in long queues. The second MRI cabinet will open this autumn.

‘Currently the MRI cabinet is fully loaded. We perform up to 30 examinations a day and we see that the demand for this service is increasing. Acknowledging this situation, we have decided to develop this field by purchasing the high-class Helium-free Philips Ingenia Ambition X MRI machine.  This is a significant investment not only in the development of our clinic, but also in the health sector in Latvia, making this precise diagnostic service more accessible for the public,’ says Darja Cvetkova, the CEO of LLC “Klinika Diamed”.

Considering all diagnostic possibilities provided by the MRI examinations, the demand for this service increases following the improvement of medical technologies. Physicians refer patients for MRI examinations more and more often to detect health problems earlier and to prescribe the correct treatment. MRI diagnostic is fast, precise, and harmless to the human body. It helps to promptly detect the problem and prescribe treatment. Last year, DiaMed performed more than 10 thousand MRI examinations.

Thanks to the Helium-free technology of the new MRI machine, it has become less spatious and lighter. In terms of technology, it is able to provide very fast examinations and high image quality. For the patient’s comfort, the claustrophobic feeling is eliminated during the examination.

Dr. Karlis Kupcs, the medical director and member of the board of DiaMed, says: ‘It is possible to perform state-paid MRI examinations in our clinic too, though the national quotas are comparatively low and are filled during the first two hours after opening of appointment queues. The waiting time for the state-paid examination can be several months long. The opening of the new cabinet will definitely decrease the waiting time in the long queues and will provide faster health diagnostics, ensuring faster treatment. Precise and distinctive diagnostic images helps to plan the operation to be less traumatic, with less interference, which means faster recovery for the patient.’

LLC “Klinika DiaMed” is a subsidiary company of “Olainfarm Group”. The clinic has specialized in diagnostics, healthcare and rehabilitation for more than 15 years. There are more than 70 health practitioners working in DiaMed, including high-class radiologists-diagnotics.