Uncategorized

Zane Kotāne has been elected as a member of the Management Board of JSC Olainfarm

on July 2, 2020

Today, the Supervisory Council of JSC Olainfarm has elected Zane Kotāne as a member of the Management Board, who will oversee financial matters. She has significant professional experience in management, finance and governance processes in both listed and state and private companies.

“We are pleased that such a high-level specialist is joining the Management Board of Olainfarm. Zane Kotāne has significant experience in the management of both Latvian and international companies. She has in-depth knowledge in areas important to the company, such as financial analysis and planning, attracting investments from the European Union institutions and private investors, as well as internal audits. On behalf of the entire council, we wish her success,” emphasizes Gundars Bērziņš, Chairman of the Supervisory Council of JSC Olainfarm.

“It is with great pleasure that I join Olainfarm’s international management team and extensive staff to be able to turn a new page in the growth story of Olainfarm together. Olainfarm has always been the pride of Latvia – a company that, with products produced in our country, not only improves people’s lives all around the world, but also contributes to the Latvian economy and provides value for every employee of the company. I am fascinated by Olainfarm’s ambitious goals to create sustainable products and grow internationally, increasing the company’s value. Good governance is crucial to me. Finance is an important asset for transparency, sustainability and growth,” emphasizes Zane Kotāne, member of the Management Board of JSC Olainfarm.

Zane Kotāne has previously held several leading positions both on the Management Board and the Supervisory Council, in such companies as JSC Conexus Baltic Grid, JSC Latvijas Gāze, JSC Latvenergo, OU Elektrum Eesti, UAB Elektrum Lietuva. From 2018 to 2020 Z. Kotāne was the Chairperson of the Management Board of JSC Conexus Baltic Grid, but from 2016 to 2017 she was a member of the Management Board of this company. In addition, from 2015 to 2017, she was a member of the Management Board of JSC Latvijas Gāze.

In her professional career, she has been a sworn auditor, certified internal auditor, risk management specialist, process change, as well as financial manager, issuing corporate bonds in Latvia and implementing internationally accepted accounting principles. Currently, Z. Kotāne holds positions in Children’s Clinical University Hospital and the SEB Pension Fund as a member of the Supervisory Council.

Zane Kotāne holds a master’s degree in Business Administration from the Riga Business School and a bachelor’s degree in Economics and Business science from the Riga School of Economics. She also has a head of the council certificate from the Baltic Institute of Corporate Governance. In addition, she has Association of Chartered Certified Accountants (ACCA) qualification and an International Internal Auditor’s Certificate (CIA), as well as a Latvian sworn auditor’s license.

Z. Kotāne does not own any shares of JSC Olainfarm, as well as any capital shares in other companies.

Jeroen Weites, Elena Bushberg, Raimonds Terentjevs, Signe Baldere-Sildedze, Milana Beļeviča and Mārtiņš Pūriņš continue to fill their duties on the Management Board of JSC Olainfarm.

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 45 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of the company’s operations is to produce reliable and effective top-quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 50 countries and territories of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

Additional information:
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Phone: +371 29178878
Email: janis.dubrovskis@olainfarm.com

read more
Zane Kotāne has been elected as a member of the Management Board of JSC Olainfarm

Lauris Macijevskis leaves his position as JSC Olainfarm Management Board member

on June 9, 2020

On June 8, the current member of the Management Board of JSC Olainfarm, Lauris Macijevskis submitted a letter of resignation to the Supervisory Council. Accordingly, he will continue to be in the position until June 12. Lauris Macijevskis has been a member of the Management Board of JSC Olainfarm since April 4, 2019, and his task was a turnaround and crisis management.

2019 has been the most successful year in the history of JSC Olainfarm. During 2019, the Group’s revenue exceeded EUR 137 million, but the net profit in 2019 was EUR 23,63 million, which is historically the largest amount of the Group’s net profit.

“The time spent at JSC Olainfarm has been professionally very exciting. Thanks to the entire Olainfarm team and the company’s Supervisory Council for constructive cooperation. I leave my position with a feeling of job well-done and the company in excellent financial condition. Given Olainfarm’s ambitious plans and planned development, there will be an increasingly important role of pharmaceutical industry professionals, who are currently strongly represented on the Management Board of the company. I have decided to build my professional future in the private business sector by sharing my expertise and experience more widely,” Lauris Macijevskis comments on his decision.

“We would like to express our gratitude towards Lauris Macijevskis on his work for Olainfarm and wish him further professional success. His work has helped the company to strengthen its position during the changes and create a strong foundation for future operations,” emphasizes Gundars Bērziņš, Chairman of the Supervisory Council of JSC Olainfarm.

During a time when the overall economy around the world has slowed down, the financial situation of JSC Olainfarm can be assessed as stable. This is the result of the company’s improvements over the past year, both internally and externally, which now allows the company to withstand even external shocks such as the 24% depreciation of the Russian ruble against the euro in the first quarter of this year. Despite the unprecedented external environmental conditions due to the Covid-19 pandemic, the Olainfarm Group continues to work towards achieving its goals.

Lauris Macijevskis sees his further professional development in the company “EMPO Ventures” founded together with other partners, which will have two areas of expertise – raising of investments for new development projects and assistance to companies facing financial difficulties.

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 45 years of experience in the production of medication and chemical and pharmaceutical products. A basic principle of the company’s operations is to produce reliable and effective top -quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 50 countries and territories of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America, and Australia.

read more
Lauris Macijevskis leaves his position as JSC Olainfarm Management Board member

Olainfarm Interim report (Q1 and Q3) Operational and financial stability are priorities of Olainfarm Group

on June 1, 2020
  • Sales and profit in the 1st quarter of 2020 were lower than a year ago due to extraordinary revenues at the end of 2019.
  • During the 1st quarter of 2020 EBITDA was EUR 4.581 million and EBITDA margin was 14 %.
  • During the reporting period profit reached EUR 2.113 million and was negatively affected by volatility in currency rates.
  • Successful operations allowed to accumulate EUR 20.192 million in cash that will ensure stable operations and development.

“The first quarter of the year has been a dynamic time in which business in Latvia and in the world have had many challenges. Today, business resilience is crucial – how to safeguard employees and the company as a whole, effectively overcoming the challenges of this crisis and continuing the company’s success. Olainfarm is ready for these challenges – we have maintained the set revenue and net profit forecast for 2020, despite the Covid-19 consequences around the world. We are working on a new ambitious five year strategy, including new initiatives such as in  cooperation with the Latvian Institute of Organic Synthesis we are researching the possibilities of production technology for the synthesis of the active pharmaceutical ingredient to limit the spread of Covid-19,” said Jeroen Weites, Chairman of the Management Board of JSC Olainfarm.

During the first quarter of 2020 the Group’s sales reached EUR 32.393 million, which is a decrease by 7% or EUR 2.352 million compared to the first quarter a year ago. Gross profit, in turn, was EUR 18.387 million, which shows a decline by 13% or EUR 2.867 million since the same period last year. Gross profit margin dropped from 61% in the first quarter of 2019 to 57% in the same quarter of 2020.

Looking at financial indicators for the last 12 month period (1 April 2019 – 31 March 2020) sales were EUR 134.867 million, which is an increase by 5% compared to a similar period a year before, EBITDA reached EUR 27.574 million that is by 9% higher and net profit was EUR 17.481 up by 10%.

Group’s sales in the main markets in the 1st quarter of 2020 resulted in the following breakdown of revenues: Latvia with a 36% share (+7 p.p.), Belarus with 17% (+2 p.p.), Russia with 14% (-11% p.p.), Central Asian countries with 11% share (+3 p.p.), the EU countries with 10% share (+2 p.p.), the Ukraine with 6% (-3 p.p.), Other countries with 4% (unchanged) and Caucasian countries with 2% (+1 p.p.).

In the 1st quarter of 2020, pharmaceutical products worth EUR 16.217 million were sold, which is a decline by 20% or EUR 3.942 million if compared to the same quarter of 2019. Final dosage forms segment share in the Group’s total revenue in the 1st quarter of 2020 dropped by 8 p.p. to 50%.

During the reporting period, sales of JSC Olainfarm main final dosage forms declined relative to the same quarter a year ago and to the last quarter of 2019. This happened due to extra sales of EUR 6 million that were executed at the end of 2019. The share of the best sold product Noofen increased to 22% that is by three percentage points more than the year before. The share of Furamag/Furasol increased to 18% (+2 p.p.) and Adaptol’s share increased to 16% (+4 p.p.). At the same time the share of Neiromidin declined to 12% (-3 p.p.).

Pharmacy segment in the 1st quarter of 2020 generated a revenue increase of 12% compared to the same quarter of 2019 and reached EUR 7.411 million. This segment’s share in the Group’s total revenue during the reporting period increased to 23% (+4 p.p.) compared to the 1st quarter of 2019.

Compression material segment’s revenue in the 1st quarter of 2020 was EUR 1.953 million that is 1% more than the year before. This segment’s share in the Group’s total revenue in the 1st quarter of 2020 was 6% (unchanged).

Revenue of the wholesale segment from external customers was EUR 2.018 million, which is an increase by 43% or EUR 0.611 million. This segment’s share in the Group’s total revenue during the reporting period rose to 6% (+2 p.p.).

Chemical segment’s income in the 1st quarter of 2020 was 1% higher than in the same quarter of 2019 and reached EUR 1.589 million. This segment’s share in the Group’s total revenue during the most recent quarter did not change and was 5%.

Other segments generated EUR 3.205 million in revenue in the 1st quarter of 2020 and is 4% more than in the same quarter of 2019. This segment’s share in the Group’s total revenue during the reporting period increased by 1 pp and was 10%.

The Group’s EBITDA figure in the reporting period was EUR 4.581 million, which is 57% or EUR 5.960 million less than the result of the same quarter of 2019. EBITDA margin of the Group is 14%.

Group’s net profit in the 1st quarter of 2020 was EUR 2.113 million, which is 74% or EUR 6.147 million less than the net profit of the 1st quarter of 2019. The Group’s net profit margin also declined, and it was 7% instead of 24% a year earlier.

The reporting period profit was favorably affected by decrease in selling expense by EUR 2.013 million, due to review of marketing model in the main sales markets and by net increase in other operating income by EUR 0.69 million.

The largest negative factor resulted from fluctuation in foreign exchange rates. Gains in the first quarter of 2019 were substituted by losses and overall impact during the 1st quarter of 2020 was in the amount of EUR 5.6 million. Due to lower revenue and different product mix in the beginning of 2020 the gross profit was lower by EUR 2.867 million than a year ago. At the same time Administrative expenses increased by EUR 0.367 million with energy related and other miscellaneous costs being the main drivers.

Most of the Group’s segments operated with profit in the 1st quarter of 2020. The largest profit before tax was generated by the medicine and chemical segment, which earned EUR 4.355 million, in wholesale the figure was EUR 0.831 million, retail (pharmacies) made EUR 0.513 million, in other segments the profit before tax was EUR 0.146 million.

The Group’s financial position during the 1st quarter of 2020 continued to improve. The Group’s successful operations allowed it to accumulate EUR 20.192 million in cash at the end of March 2020. This is a significant precondition to limit the effect of uncertainty within the sales markets as well as allows to safeguard supply of raw materials in order to maintain stable operations. Also accumulated cash allows continued financing for fixed asset investments as well as investments into research and development activities linked to completing clinical trials.

The Group’s Debt service coverage ratio (DSCR) in the 1st quarter of 2020 continued to improve and was 3.6 due to the drop in the amount of serviced debt in the last twelve months. Net Debt-to-EBITDA ratio was essentially NIL due to rapidly rising cash balances.

Condensed Consolidated Statement of  Financial Position

  Group
  31.03.2020        31.12.2019
  EUR ‘000 EUR ‘000
    ASSETS  
NON-CURRENT ASSETS  
Intangible assets   39 057   38 422
Property, plant and equipment   42 004   42 442
Right-of-use assets   7 113   7 069
Investment property   244   253
Other long-term investments   803   782
TOTAL NON-CURRENT ASSETS   89 221   88 968
CURRENT ASSETS  
Inventories   29 491   28 247
Receivables   32 421   36 225
Cash   20 192   15 230
TOTAL CURRENT ASSETS   82 104   79 702
TOTAL ASSETS   171 325   168 670
 
  EQUITY AND LIABILITIES  
EQUITY  
Share capital   19 719   19 719
Share premium   2 504   2 504
Reserves   (502)   (12)
Retained earnings   107 411   105 298
TOTAL EQUITY   129 132   127 509
LIABILITIES  
Non-current liabilities  
Borrowings and lease liabilities   11 757   12 177
Deferred income   3 744   3 194
Total Non-Current Liabilities   15 501   15 371
Current liabilities  
Borrowings and lease liabilities   8 446   9 568
Trade payables and other liabilities   17 740   15 727
Deferred income   506   495
Total Current Liabilities   26 692   25 790
TOTAL LIABILITIES   42 193   41 161
TOTAL EQUITY AND LIABILITIES   171 325   168 670

Consolidated statement of comprehensive income

  Group
  Q1 2020          Q1 2019
  EUR ‘000 EUR ‘000
Revenue   32 393   34 745
Cost of goods sold   (14 006)   (13 491)
Gross Profit   18 387   21 254
Selling expense   (6 268)   (8 281)
Administrative expense   (6 700)   (6 333)
Other operating income   699   462
Other operating expense   202   (255)
Share of profit of an associate   15   78
Financial income   18   1 563
Financial expense   (4 219)   (161)
Profit Before Tax   2 134   8 327
Corporate income tax   (31)   (67)
Deferred corporate income tax   10   –
PROFIT FOR THE REPORTING PERIOD   2 113   8 260
Other comprehensive (loss) / income for the reporting period, net of tax   (490)   155
Total comprehensive income for the reporting period, net of tax   1 623   8 415
Total comprehensive income attributable to:  
The equity holders of the Parent Company   1 623   8 415
Non-controlling interests   –   –
 
Basic and diluted earnings per share, EUR   0.15   0.59

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 45 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of company’s operations is to produce reliable and effective top -quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 50 countries and territories of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

Additional information:
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Phone: +371 29178878

read more
Olainfarm Interim report (Q1 and Q3) Operational and financial stability are priorities of Olainfarm Group

In 2019, Olainfarm Group successfully started its transformation, which has already yielded significant results

on May 6, 2020
  • In 2019, Group’s sales reached EUR 137 219 thousand , which is an increase by 10% or EUR 12 963 thousand.
  • Group’s audited net profit reached EUR 23 628 thousand, which is the largest profit amount in history.
  • For 2019 the management proposed a dividend of EUR 0.32 per share.
  • In 2020, Group forecasts a revenue of EUR 135 500 thousand and net profit of EUR 14 200 thousand.

The Group’s main achievements in 2019 were the following:

  • Secured profitability of the entire Group, focusing on identifying growth opportunities;
  • Maintained the competitive position of our products in the key markets;
  • Strengthened the product portfolio through new product launches;
  • DIversified and enhancing JSC Olainfarm presence in various markets through exporting products;
  • Optimized financial control and cost containment measures;
  • Optimized production processes and cost containment measures put in place;
  • Expanded the management board by added two new members bringing international pharma experience to the Group.

During the entire 2019 the Group sales reached EUR 137 219 thousand, which is an increase by 10% or EUR 12 963 thousand compared to 2018. Gross profit, in turn, was EUR 84 807 thousand which shows an increase by 13% or EUR 9 951 thousand since 2018. Gross profit margin improved from 60% in 2018 to 62% in 2019.

Parent company sales in 2019 increased by 12% and reached EUR 104 363 thousand compared to the previous year. Gross profit grew by 17% and amounted to EUR 69 453 thousand. Parent company’s gross profit margin rose from 64% in 2018 to 67% in 2019.

The total annual revenue of the Group in 2019 exceeded planned sales figures (EUR 133 343  thousand) for the entire 2019 by 2.9% or EUR 3 876 thousand. Parent company’s revenue beat the forecasted (EUR 98 636 thousand) by 5.8% or EUR 5 727 thousand.

The Group’s main markets in 2019 were Russia with a 32% share (+2pp), Latvia with 28% (-1pp), Belarus with 11% (unchanged), the Ukraine with 8% (-1pp), Central Asian and EU countries have an 8% share (unchanged), Other countries with 3% (-1pp) and Caucasian countries with 2% (unchanged).

The main business segment is final dosage forms that are manufactured by the Parent company in Olaine. In 2019, pharmaceutical products worth EUR 80 993 thousand were sold, which is an increase by 14% or EUR 10 046 thousand if compared to 2018. This segment’s share in the Group’s total revenue in 2019 rose by 2 p.p. to 59%.

Throughout 2019, sales of JSC Olainfarm main final dosage forms continued to increase. The share of the best selling product Noofen increased to 20% that is by one percentage point more than the year before. The share of the three largest products: Noofen, Neiromidin and Furamag/Furasol comprised 56% that is also one percentage point higher than the year before.

Within the Group, Latvijas aptieka Ltd manages and develops pharmacies in Latvia where the Pharmacy segment in 2019 generated a revenue increase by 7% compared to 2018 and reached EUR 25 427 thousand. The company evaluates market trends and performance results of each pharmacy. There were 68 pharmacies at the end of 2019. This segment’s share in the Group’s total revenue during 2019 did not change and was 19%.

Group’s company Tonus Elast Ltd manufactures a wide range of compression materials and sells products in Latvia and abroad. Revenue of this segment in 2019 was EUR 8 794 thousand that is 7% or EUR 712 thousand less than the year before. This segment’s share in the Group’s total revenue in 2019 declined by 2 p.p. to 6%.

Within the Group, the Parent company JSC Olainfarm manages the wholesale of medical products as it has a medical wholesale license, which allows it to purchase products from other manufacturers and to deliver them to Latvijas aptieka Ltd as well as other cooperation partners. Revenue of this segment from external customers in 2019 was EUR 5 382 thousand, which is a decline by 2% or EUR 104 thousand. This segment’s share in the Group’s total revenue during 2019 did not change and was 4%.

In addition to final dosage forms, the Parent company manufactures chemical components that are sold to other pharmaceutical companies covering a wide geographical area. The segment’s income in 2019 was 16% higher than in 2018 and reached EUR 5 124 thousand. This segment’s share in the Group’s total revenue during 2019 did not change and was 4%.

The last segment combines Silvanols, Diamed and Olainmed medical facilities, the Belarussian manufacturing company Biotest and others, generating EUR 11 499 thousand in revenue in 2019, which is 14% more than in 2018. This segment’s share in the Group’s total revenue during 2019 did not change and was 8%.

Group’s EBITDA figure in 2019 was EUR 33 499 thousand, which is by 66% or EUR 13 271 thousand more than the results of 2018. The Parent company’s EBITDA in 2019 improved by 91% and reached EUR 29 256 thousand. In 2019, EBITDA margin of the Group and the Parent company was 24.4% and 28.0%, respectively.

Group’s net profit in 2019 was EUR 23 628 thousand, which is the largest net profit amount in the history of the Group. The profit increased by 120% or EUR 12 897 thousand in comparison to 2018. The Group’s net profit margin in 2019 was 17.2%, whereby in 2018 the ratio was 8.6%.

The Parent company’s net profit in 2019 was EUR 22 239 thousand, which is by EUR 13 353 thousand or 150% more than in 2018. The Parent company’s net profit margin in 2019 was 21.3%, whereby in 2018 the ratio was 9.6%.

The Group’s net profit target for 2019 initially was EUR 10 million but in May the management revised it to EUR 12.7 million. For the Parent company, the initial forecast of net profit was EUR 8.8 million and subsequently revised to EUR 11.5 million. Due to a number of positive events the actual results of the Group exceeded the Group’s revised target by 86% and the Parent’s target by 93%.

In 2019, the Parent company approved a Dividend policy. For 2019, the Management Board will recommend dividend payout of 20.27% of the Parent company’s audited net profit in the total amount of EUR 4 507 224.96 or EUR 0.32 per share.

According to the previous plan a set of pre-clinical and clinical trials was conducted in 2019. Throughout 2019, five phase 1 clinical trials (pharma kinetics and bioavailability) were started with the completion of trial planning, drafting of required documentation and issue of permits. Trials are set to close and final reports to be received in the 1st to 3rd quarters, 2020.

At the same time, in 2019, a planning and preparation phase took place for phase 3 clinical trials for two final dosage forms with a plan to start trials in 2020. Implementation of clinical trials for peripheral nervous system diseases is planned for the 1st quarter, 2020.

During 2020, substantial investments are arranged for the planning of clinical trials in order to start one phase 1 clinical trial and three phase 3 clinical trials in the 4th quarter of 2020 – 1st quarter of 2021.

Future oriented, in 2020, the Group will further build on the strategic directions for sustainable growth by focusing on innovation and leveraging synergies across the group. Second growth lever is to adapt the current and future portfolio and geographical scope to mid-term and long-term opportunities. At the same time, the Group is securing business by opening subsidiaries or representative offices in the main markets with the objective to work closer to the customer and key stakeholders, to have better control over promotional efforts and performances, and to anticipate for future growth.

For 2020, the Group estimates its revenue to be EUR 135.5 million and a net profit of EUR 14.3 million as well as EPS of 1 euro. JSC Olainfarm forecasta a revenue of EUR 97.3 million  and a net profit of EUR 13.4 million.

Condensed Consolidated Statement of  Financial Position

  Group Parent company
  31.12.2019        31.12.2018               31.12.2019        31.12.2018
  EUR ‘000 EUR ‘000 EUR ‘000 EUR ‘000
    ASSETS  
NON-CURRENT ASSETS  
Intangible assets   38 422   36 619   4 181   1 977
Property, plant and equipment   42 442   43 697   36 327   37 380
Right-of-use assets   7 069   –   2 440   –
Investment property   253   3 492   253   289
Other long-term investments   782   983   43 752   46 967
TOTAL NON-CURRENT ASSETS   88 968   84 791   86 953   86 613
CURRENT ASSETS  
Inventories   28 247   25 794   19 765   17 945
Receivables   36 225   34 637   34 506   32 040
Cash   15 230   2 689   12 965   1 545
TOTAL CURRENT ASSETS   79 702   63 120   67 236   51 530
TOTAL ASSETS   168 670   147 911   154 189   138 143
 
  EQUITY AND LIABILITIES  
EQUITY  
Share capital   19 719   19 719   19 719   19 719
Share premium   2 504   2 504   2 504   2 504
Reserves   (12)   (224)   40   40
Retained earnings   105 298   83 079   99 657   78 827
TOTAL EQUITY   127 509   105 078   121 920   101 090
LIABILITIES  
Non-current liabilities  
Borrowings and lease liabilities   12 177   1 793   8 308   1 525
Deferred income   3 194   2 878   3 179   2 852
Total Non-Current Liabilities   15 371   4 671   11 487   4 377
Current liabilities  
Borrowings and lease liabilities   9 568   23 236   8 299   21 696
Trade payables and other liabilities   15 727   14 540   12 007   10 614
Deferred income   495   386   476   366
Total Current Liabilities   25 790   38 162   20 782   32 676
TOTAL LIABILITIES   41 161   42 833   32 269   37 053
TOTAL EQUITY AND LIABILITIES   168 670   147 911   154 189   138 143

Consolidated statement of comprehensive income

  Group Parent company
  2019 2018 2019 2018
  EUR ‘000        EUR ‘000                 EUR ‘000        EUR ‘000
Revenue   137 219   124 256   104 363   93 018
Cost of goods sold   (52 412)   (49 400)   (34 910)   (33 453)
Gross Profit   84 807   74 856   69 453   59 565
Selling expense   (30 188)   (37 291)   (20 936)   (28 449)
Administrative expense   (26 750)   (24 427)   (22 968)   (20 708)
Other operating income   2 363   2 559   2 479   1 524
Other operating expense   (7 684)   (1 726)   (7 495)   (1 278)
Share of profit of an associate   81   106   –   –
Dividend income from subsidiaries and associates   –   –   754   1 004
Financial income   2 260   76   2 065   126
Financial expense   (924)   (2 788)   (792)   (2 552)
Profit Before Tax   23 965   11 365   22 560   9 232
Corporate income tax   (387)   (630)   (321)   (346)
Deferred corporate income tax   50   (4)   –   –
PROFIT FOR THE REPORTING PERIOD   23 628   10 731   22 239   8 886
Other comprehensive income for the reporting period, net of tax   212   (150)   –   –
Total comprehensive income for the reporting period, net of tax   23 840   10 581   22 239   8 886
Total comprehensive income attributable to:  
The equity holders of the Parent Company   23 840   10 581   22 239   8 886
Non-controlling interests   –   –   –   –
 
Basic and diluted earnings per share, EUR   1.68   0.76   1.58   0.63

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 45 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of company’s operations is to produce effective top -quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 50 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

Additional information:
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Phone: +371 29178878
Email: janis.dubrovskis@olainfarm.com

read more
In 2019, Olainfarm Group successfully started its transformation, which has already yielded significant results

In March Olainfarm group sales increased by 22%; manufacturing and distribution processes are operating normally

on April 20, 2020

Olainfarm group’s indicative consolidated sales in March reached EUR 13.2 million, which is an increase by 22% compared to March last year. Revenues in Latvia improved by 29% year-on-year, in Ukraine sales rose by 963%, in Belarus by 1%, in the EU countries by 49%, in Caucasus countries by 126% and in other countries by 35%. Revenues in Russia and Central Asia declined by 28% and 6%, respectively. In March the Group started cooperation with one of the largest pharmaceutical distributors in Ukraine, which already demonstrates substantial results.

Despite the spread of COVID-19 to most countries in the world including Latvia, the Group has continued to operate normally with limited impact. The Group companies have taken safety measures in accordance with local regulations. Employees at JSC Olainfarm and the major subsidiaries regularly check their health condition to limit potential spread of the coronavirus among employees. Employees who can perform tasks remotely are working from home. Business trips have been canceled, face-to-face meetings have been limited whenever possible and online meetings are encouraged instead. Because of travel restrictions, the Group’s medical representatives are conducting promotional calls via video conference or by phone to stay connected with their customers.

The Group companies source raw materials from various countries and have established plans to expand the list of suppliers. At the moment, the Group has sufficient inventory for the foreseeable future, which enables it to plan production without interruptions. The manufacturing processes and product deliveries at JSC Olainfarm have not been significantly affected. More shipments of products to clients are done by trucks instead of air traffic.

During the first three months of 2020, Olainfarm group’s indicative consolidated sales amounted to EUR 31.7 million. It is by 9% less than in 2019 due to additional volumes sent to Russia in amount of EUR 6 million in the second half of 2019 when wholesalers anticipated introduction of serialization requirements and it has been taken into consideration in the forecasts for 2020. The increase in revenue during the three-month period was in Latvia by 11%, Belarus by 7%, the Central Asian and Caucasian regions where the sales were 25% and 103% more than a year ago, in the EU countries revenue increased by 11%. At the same time sales declined in Russia (-52%), in Ukraine (-36%) and in other countries (-3%).

“The change of direction in the sales strategy of the main markets has delivered the expected results shown by the turnover in March, exceeding the indicators of March of last year. We expect that the cooperation with drug distributors will continue to deliver the annual plan in both Russia and the Ukraine, as well as in other markets. Despite the spread of COVID-19 to most countries in the world including Latvia, the Group continues to operate normally with limited impact.  The Olainfarm Group continues to work in strict compliance with all the measures related to the control of the coronavirus. Due to state-imposed limitations, healthcare facilities of Diamed and Olainmed have been closed since the end of March. The largest Group companies continue to operate without any changes,” said Jeroen Weites, Chairman of the Management Board of JSC Olainfarm.

March 2020, consolidated results           Sales, mil. EUR         Share in total sales         Compared to March 2019
Latvia 4.184 32% 29%
Russia 2.067 16% -28%
Ukraine 1.823 14% 963%
Central Asia 1.686 13% -6%
Belarus 1.582 12% 1%
EU countries 1.294 10% 49%
Other countries 0.303 2% 35%
Caucasian countries 0.274 2% 126%
Total 13.214 100% 22%

 

Three months 2020, consolidated sales          Sales, mil. EUR          Share in total sales          Changes to three months 2019
Latvia 10.858 34% 11%
Belarus 5.879 19% 7%
Russia 4.343 14% -52%
Central Asia 3.594 11% 25%
EU countries 3.122 10% 11%
Ukraine 1.829 6% -36%
Other countries 1.417 4% -3%
Caucasian countries 0.653 2% 103%
Total 31.694 100% -9%

The Central Asian region includes Uzbekistan, Kazakhstan, Tajikistan, Kyrgyzstan, Mongolia and Turkmenistan.
The EU country region includes all of the European Union member states except for Latvia;
Other countries include all of the countries in the world, which are not included in any other groups;
The Caucasian countries are Georgia, Armenia and Azerbaijan.

Unconsolidated sales in March and three months

According to the preliminary unconsolidated figures, JSC Olainfarm sales reached EUR 10.4 million in March 2020, which represents an increase by 33% compared to March, 2019. Sales of products in March improved in Latvia by 67%, Ukraine by 1067%, in Central Asia by 2%, in the EU countries by 56%, in Caucasus countries by 221% and in other countries by 37%. Revenues declined in Russia by 28% and in Belarus by 2% if compared to the same months  a year ago.

During the first three months of this year JSC Olainfarm preliminary revenue declined by 12% and was EUR 23.3 million. The largest sales outlet was Latvia where the revenue climbed up by 21% compared to the three-month period a year ago, in Belarus sales were up by 4%, in Central Asia there was an increase by 32%, in the EU countries revenues increased by 10% and Caucasus countries there was growth by 89%. At the same time revenue declined in Russia by 56%, in Ukraine by 36% and in other countries by 7%.

March 2020, unconsolidated sales           Sales, mil. EUR         Share in total sales          Compared to March 2019
Latvia 2.416 23% 67%
Ukraine 1.823 17% 1067%
Russia 1.765 17% -28%
Central Asia 1.646 16% 2%
Belarus 1.223 12% -2%
EU countries 1.168 11% 56%
Other countries 0.210 2% 37%
Caucasus countries 0.188 2% 221%
Total 10.438 100% 33%

 

Three months 2020, unconsolidated sales          Sales, mil. EUR          Share in total sales          Changes to Three months 2019
Latvia 5.455 23% 21%
Belarus 4.807 21% 4%
Russia 3.505 15% -56%
Central Asia 3.367 14% 32%
EU countries 2.726 12% 10%
Ukraine 1.824 8% -36%
Other countries 1.201 5% -7%
Caucasian countries 0.451 2% 89%
Total 23.336 100% -12%

Results of subsidiaries in March and three months

The pharmacy chain Latvijas Aptieka sales reached EUR 2.9 million in March 2020, which represents a 37% increase compared to March, 2019. Silvanols sales reached EUR 0.8 million in March 2020, representing a growth by 33% versus March, 2019. The combined sales of Tonus Elast and Elast Medical in March 2020 were EUR 0.7 million, which is 27% less than this time last year. Olainmed and Diamed Medical Center sales reached EUR 0.24 million, while the Belarusian subsidiary NPK Biotest reached EUR 0.31 million in sales in March, which is 28% higher than in March of last year.

During the first three month period of 2020, Latvijas Aptieka sales amounted to EUR 7.5 million, demonstrating a 14% increase in comparison to the same time period last year. Sales of SIA Silvanols reached EUR 1.7 million which is 1% more than last year. The combined sales of Tonus Elast and Elast Medical during the first three months of this year totaled up to EUR 2 million, which is a decline by 8%. Medical Center Diamed and Olainmed revenue was EUR 0.8 million during the first three months of this year and the Belarusian company NPK Biotest sales were worth EUR 0.9 million, improving the result of last year by 15%.

March 2020        Three months 2020
Sales of Latvijas Aptieka, mil. EUR 2.938 7.499
Sales of Silvanols, mil. EUR 0.768 1.663
Sales of Tonus Elast and Elast Medikl, mil. EUR 0.686 1.990
Sales of Medical centers, mil. EUR 0.244 0.840
Sales of NPK Biotest, mil. EUR 0.314 0.907

According to the JSC Olainfarm 2020 budget, unconsolidated sales are planned to reach EUR 97.3 million in 2020, while consolidated sales are expected at EUR 135.5 million.  According to these preliminary sales figures, in the first three months of 2020, 24% of annual target for unconsolidated sales and 23% of annual target for consolidated sales have been reached.

JSC Olainfarm has reviewed announcement procedure of monthly revenue data. In the future revenue data will be disclosed on quarterly basis, starting from the second quarter sales figures.

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 45 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of the company’s operations is to produce reliable and effective top -quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 50 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

Additional information:
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Phone: +371 29178878
Email: janis.dubrovskis@olainfarm.com

read more
In March Olainfarm group sales increased by 22%; manufacturing and distribution processes are operating normally

JSC Olainfarm decide to gift Pauls Stradiņš Clinical University Hospital artificial lung ventilation devices in the worth of EUR 100 thousand

on March 26, 2020

In order to support the treatment of people infected by Covid-19 and considering the declared state of emergency in Latvia, on 25 March JSC Olainfarm made the decision to support State-owned limited liability company Pauls Stradins Clinical University Hospital. JSC Olainfarm has started a EUR 100 000 purchase of artificial lung ventilation equipment, which will be gifted to the hospital in order to ensure the treatment of people infected by the Covid-19 virus. In addition, JSC Olainfarm will provide half a tonne of isopropyl alcohol solution free of charge, to be used for disinfecting purposes and to limit the spread of the Covid-19 outbreak.

“We have a great responsibility not only towards JSC Olainfarm and the employees of the entire Group, but, as one of the largest pharmaceutical companies in the Baltics, also towards our country and the overall health of its citizens. The spread of coronavirus needs to be limited and we have to prepare crisis solutions. We have implemented strict procedures within the company in order to prevent Covid-19 from spreading and to take care of our employees’ health along with the uninterruption in supplying products manufactured by Olainfarm. Today we are going a step further and want to help our society by deciding to donate artificial lung ventilation devices, which are vital in saving the lives of people with severe cases of coronavirus,” says  Milana Beleviča, JSC Olainfarm Member of the Management Board.

“This is a time during which we are especially grateful for help and the gift that will help us save the lives of our patients! The specialists at Pauls Stradiņš Clinical University Hospital are ready to help anyone in need and, although we all hope that Latvia will not be majorly affected by this crisis, we are also preparing for a scenario where many will need help,” profesor Eva Strīķe, Pauls Stradiņš Clinical University Hospital Main doctor, says with gratitude.

Artificial lung ventilation devices to Pauls Stradiņš Clinical University Hospital are planned to be delivered in May, a total of four HAMILTON C1 medical devices will be purchased and supplied by Arbor Medical Corporation Ltd., which offers high quality medical products from globally recognised manufacturers and works in accordance with international standardization certificates and ethical principles.

Tonus Elast, a JSC Olainfarm subsidiary, led by social responsibility has started the production of face masks in a short period of time, since the beginning of March. Face masks are handmade and qualify as a tool of personal protection serving as a barrier against dust, tiny particles and droplets. Such masks are currently a deficit. For the purposes of increasing production capacity, Tonus Elast is transferring its technological knowledge to partners in Latvia who are prepared to start the production of the masks.

read more
JSC Olainfarm decide to gift Pauls Stradiņš Clinical University Hospital artificial lung ventilation devices in the worth of EUR 100 thousand

JSC OlainFarm appoints a new member of the Management Board of Latvijas aptieka

on March 19, 2020

The Management Board of JSC OlainFarm decided to make changes in the Management Board of Latvijas aptieka Ltd. by appointing Marina Serpova, whose professional experience in business management and financial management will contribute to achieving the company’s goals, as a Member of the Management Board. JSC OlainFarm is gradually improving the activities of its subsidiaries and is gradually moving towards the signing of the OlainFarm Group agreement.

The current members of the Management Board of Latvijas aptieka Ltd. will continue to perform their duties as usual with the new Management Board structure.

Marina Serpova has two degrees – technical and financial. She has 18 years of experience as a CFO, as well as in corporate and financial management in various sectors in Latvia and also abroad. Until now, Serpova has developed important skills in financial and accounting matters, team leadership and motivation. Serpova does not own any JSC OlainFarm shares.

“The goal of OlainFarm is to further strengthen the quality of our subsidiaries and move towards uniform management practices across the group. We are on the way to concluding a group agreement in order to ensure proper and joint management. Our goal is to guide the OlainFarm Group towards further sustainable development in line with modern risk management and our ambitious goals of becoming one of the TOP10 pharmaceutical companies. I highly value the OlainFarm Group’s corporate team and I am convinced that the knowledge provided by a new team member is valuable for further successful development,” emphasizes Milana Beļeviča, member of the Management Board of JSC OlainFarm.

Last year 68 pharmacies were operating in 20 Latvian cities within the Latvijas aptieka Ltd. network of pharmacies owned by JSC OlainFarm. According to preliminary financial data during the entire 2019,  Latvijas aptieka sales amounted to EUR 26.1 million, demonstrating an 8% increase in comparison to 2018.

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 45 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of the company’s operations is to produce reliable and effective top -quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 60 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

Additional information:  
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Phone: +371 29178878
Email: janis.dubrovskis@olainfarm.com

read more
JSC OlainFarm appoints a new member of the Management Board of Latvijas aptieka

February sales in several markets exceeded prior year results; procedures are in place to limit the spread of coronavirus

on March 18, 2020

Olainfarm group’s indicative consolidated sales in February reached EUR 11 million, which is a decline by 4% compared to February last year. Latvia’s share in total revenue was 30%, Belarus’ was 21% and Russia’s was 20%. Sales increased in Latvia by 4%, in Belarus by 36%, in Central Asia and in Caucasian countries by 100% and 43%, respectively. In the EU countries sales rose by 10%. At the same time, in Russia there was a drop by 30% and in Other countries by 22%. In March the Group started cooperation with one of the largest pharmaceutical distributors in Ukraine, which will allow to reach substantial results in the long-term.

Taking into account the announcement by the World Health Organization on March 11, 2020 that Covid-19 has been declared a pandemic, the Latvian government has, on March 12, declared a state of emergency, thereby limiting and seeking to reduce the spread of the virus by reduction of direct contact between people. Olainfarm has strict procedures in place to prevent the spread of the virus in order to protect employees and to continue production.

JSC Olainfarm has sufficient inventory of raw materials and excipients in place to secure manufacturing process and is on a regular base in contact with companies delivering raw materials and excipients from outside Latvia for future manufacturing needs. JSC Olainfarm conducts daily health monitoring of employees to guarantee the production planning of the products and have put precautionary measures in place regarding health and transport of the employees. Group is also on a daily base in contact with the distributors and partners abroad to secure product flow in their markets.

During the first two months of 2020, Olainfarm group’s indicative consolidated sales amounted to EUR 18.5 million. It is by 22% less than in 2019 due to additional volumes sent to Russia in amount of EUR 6 million in the second half of 2019 when wholesalers anticipated introduction of serialization requirements and it has been taken into consideration in the forecasts for 2020. At the beginning of this year Latvia’s market has the largest share of revenues (36%), Belarus’ share was (23%) and Russia’s share was 12%. The fastest increase in revenue during the two-month period was in the Central Asian and Caucasian regions where the sales were 76% and 88% more than a year ago, in Latvia revenue increased by 2% but in Belarus by 9%. At the same time sales declined in Russia (-63%), in the EU countries (-6%) and in Other countries (-8%).

“February results show a positive trend, with sales in Russia picking up, we expect the results of the first quarter to be on in line with budget for 2020. Olainfarm is ready for the challenges related to Covid-19 restrictions worldwide, we have sufficient raw materials for the coming months so that the restrictions related to the spread of coronavirus do not affect the availability of the company’s raw materials. To ensure long-term competitiveness, we are investing significantly in the planning of clinical trials in order to start one Phase 1 and three Phase 3 clinical trials this year and early 2021 needed to remain compliant with our core products to regulatory requirements, while continuing to providing customers with top-quality formulations,” said Jeroen Weites, Chairman of the Management Board of JSC Olainfarm.

February 2020, consolidated results          Sales, mil. EUR        Share in total sales        Compared to February 2019
Latvia 3.294 30% 4%
Belarus 2.316 21% 36%
Russia 2.225 20% -30%
Central Asia 1.107 10% 100%
EU countries 1.088 10% 95%
Other countries 0.742 7% -22%
Caucasian countries 0.176 2% 43%
Ukraine 0.005 0% -100%
Total 10.953 100% -4%

 

Two months 2020, consolidated sales        Sales, mil. EUR         Share in total sales        Changes to two months 2019
Latvia 6.674 36% 2%
Belarus 4.297 23% 9%
Russia 2.275 12% -63%
Central Asia 1.908 10% 76%
EU countries 1.856 10% -6%
Other countries 1.118 6% -8%
Caucasian countries 0.378 2% 88%
Ukraine 0.006 0% -100%
Total 18.512 100% -22%

The Central Asian region includes Uzbekistan, Kazakhstan, Tajikistan, Kyrgyzstan, Mongolia and Turkmenistan.
The EU country region includes all of the European Union member states except for Latvia;
Other countries include all of the countries in the world, which are not included in any other groups;
The Caucasian countries are Georgia, Armenia and Azerbaijan.

Unconsolidated sales in February and two months

According to the preliminary unconsolidated figures, JSC Olainfarm sales reached EUR 8 million in February 2020 which represents a decrease by 8% compared to February, 2019. Sales of products in February improved in Belarus by 40%, in Central Asian countries by 126%, in the EU countries by 93%, in the Caucasian countries by 72% and in Latvia by 3%. Sales in February declined in Russia by 32% and in Other countries by 31%. As announced before there were additional sales to Russia in the second half of 2019 due to anticipated regulatory requirements on serialization scheduled for 2020.

During the first two months of this year JSC Olainfarm preliminary revenue declined by 31% and was EUR 12.9 million. The largest sales outlet was Belarus where the revenue climbed up by 7% compared to the two-month period a year ago, in Latvia sales were flat, in Central Asia there was an increase by 84% and in Caucasian countries by 46%. At the same time revenue declined in Russia by 69% and in the EU countries by 10%.

February 2020, unconsolidated sales        Sales, mil. EUR       Share in total sales        Compared to February 2019
Belarus 1.999 25% 40%
Russia 1.871 23% -32%
Latvia 1.443 18% 3%
Central Asia 0.946 12% 126%
EU countries 0.936 12% 93%
Other countries 0.651 8% -31%
Caucasian countries 0.176 2% 72%
Ukraine 0 0% -100%
Total 8.022 100% -8%

 

Two months 2020, unconsolidated sales        Sales, mil. EUR         Share in total sales          Changes to two months 2019
Belarus 3.584 28% 7%
Latvia 3.038 23% 0%
Russia 1.74 13% -69%
Central Asia 1.721 13% 84%
EU countries 1.562 12% -10%
Other countries 1.02 8% -9%
Caucasian countries 0.264 2% 46%
Ukraine 0.002 0% -100%
Total 12.931 100% -31%

Results of subsidiaries in February and two months

The pharmacy chain Latvijas Aptieka sales reached EUR 2.2 million in February 2020, which represents a 2% increase compared to February, 2019. 68 pharmacies were operating during this period. Silvanols sales reached EUR 0.5 million in February 2020, representing a decrease by 15% versus February, 2019. The combined sales of Tonus Elast and Elast Medical in February 2020 were EUR 0.8 million, which is 11% more than this time last year. Olainmed and Diamed Medical Center sales reached EUR 0.3 million, while the Belarusian subsidiary NPK Biotest reached EUR 0.31 million in sales in February, which is 11% higher than in February of  last year.

During the first two month period of 2020, Latvijas Aptieka sales amounted to EUR 4.6 million, demonstrating a 2% increase in comparison to the same time period last year. Sales of SIA Silvanols reached EUR 0.9 million which is 16% less than last year. The combined sales of Tonus Elast and Elast Medical during the first two months of this year totaled up to EUR 1.3 million, which is an increase by 6%. Medical Center Diamed and Olainmed revenue was EUR 0.6 million during the first two months of this year and the Belarusian company NPK Biotest sales were worth EUR 0.6 million, improving the result of last year by 8%.

February 2020        Two months 2020
Sales markets of Olainfarm 30 36
Sales markets of the Group 34 41
Number of pharmacies 68
Sales of Latvijas aptieka, mil. EUR 2.164 4.55
Sales of Tonus Elast and Elast Medikl, mil. EUR 0.784 1.304
Sales of Silvanols, mil. EUR 0.495 0.896
Sales of Medical centers, mil. EUR 0.293 0.596
Sales of NPK Biotest, mil. EUR 0.312 0.593

According to the JSC Olainfarm 2020 budget, unconsolidated sales are planned to reach EUR 97.3 million in 2020, while consolidated sales are expected at EUR 135.5 million.  According to these preliminary sales figures, in the first two months of 2020, 13% of annual target for unconsolidated sales and 14% of annual target for consolidated sales have been reached.

JSC Olainfarm has reviewed announcement procedure of monthly revenue data. In April this year sales data for March is planned to be released, afterwards revenue data will be disclosed on quarterly basis, starting from the second quarter sales figures.

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 45 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of the company’s operations is to produce reliable and effective top -quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 60 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

Additional information:  
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Phone: +371 29178878
Email: janis.dubrovskis@olainfarm.com

read more
February sales in several markets exceeded prior year results; procedures are in place to limit the spread of coronavirus

Thanks to the donation of JSC Olainfarm, Riga Stradiņš University Faculty of Law will implement virtual reality technologies

on March 10, 2020

JSC Olainfarm donation (EUR 10 000) will ensure the promotion of digitalization of the study process for the law students of Riga Stradiņš University (RSU). Thanks to the donation, RSU Faculty of Law will digitalize the range of study courses offered using virtual reality technology in the learning process.

“Modernization and digitalization of the study process is important in all fields of study including specific courses implemented by Riga Stradiņš University such as Medical Law, Health Care Organizational Law, Biomedical Legal Problems and Pharmaceutical Law. The donation given by JSC Olainfarm is an invaluable support in getting as many students as possible to obtain an education matching all modern requirements,” said the Dean and professor Dr. iur Andrejs Vilks, Faculty of Law Riga Stradiņš University. The formal event was also attended by Rīgas Stradiņš University  study protector Prof. Dr. habil. paed. Tatjana Koķe.

“The key to any success is hard work, courage, true dedication as well as good education. JSC Olainfarm is pleased to be able to support the modernization of the learning program, because we are convinced that innovations and high quality of production go hand in hand with our investment in new talents. We are grateful to Riga Stradiņš University for the high-level specialists that we would be glad to see amongst our colleagues in future. If any young person is still trying to decide on his or her future career, pharmacy and chemistry combined with jurisprudence are definitely promising fields,” says JSC Olainfarm Member of the Management Board Milana Beleviča, who has completed Law program at Riga Stradiņš University.

Modernization of study programs

With the help of the donated funds, the Faculty of Law will purchase virtual reality goggles and a virtual reality platform will be developed that will allow to create the experience of legal situations. In this way, students studying pharmaceutical law will have the opportunity to develop and strengthen their theoretical knowledge, skills and competences on the nature of the legal issues specific to pharmaceutical law as well as conduct appropriate case studies.

Whereas, by using the virtual reality goggles and virtual reality platforms, students in the field of medical law will be able to gain practical and theoretical knowledge, skills and competences concerning patient and health professionals’ legal relationships.

Riga Stradiņš University Faculty of Law provides a full cycle of law studies – an academic bachelor’s degree, academic and professional master’s degree, as well as doctoral study programs.

JSC Olainfarm social responsibility activities are aimed at the community – supporting health care and a healthy lifestyle, science and education, culture and succession of employees.

read more
Thanks to the donation of JSC Olainfarm, Riga Stradiņš University Faculty of Law will implement virtual reality technologies

JSC Olainfarm strengthens its presence in Russia and establishes a subsidiary

on March 4, 2020

In February of this year, Olainfarm made a strategic decision and established a subsidiary in Moscow, Russia. Russia is one of Olainfarm key focus markets and strategic priority for market presence. The new entity will enable Olainfarm to conduct in-depth market research and collect customers’ insights, better respond to customer needs and manage promotion and trade processes. Until now, JSC Olainfarm did not have direct market access and provided products to the markets of CIS countries through partnership agreements.

“The Olainfarm brand is well known in Russia, our products are important to patients’ health, especially in neurology, psychiatry, and urinary tract infections. Based on market research agencies, every year about 1,8 million of Russian patients use Olainfarm medications to treat various health conditions including inflammation, pain, depression, cognitive disorders in order to be able to enjoy life again,” explains Elena Bushberg a member of the Management Board and CEO of OlainFarm, a part of Olainfarm Group of companies.

The Russian subsidiary will be managed by a professional expert in sales, marketing, and commercial excellence with more than 20 years of experience in international pharmaceutical companies.

“This is a strategic step for Olainfarm long-term presence in Russia demonstrating our commitment to Russian healthcare needs and patients well-being. Our aim is also to ensure sustainability and transparency of all operations, enhance the good reputation for Olainfarm, and create value for our employees, business partners, society, shareholders and the organization as a whole,” adds Elena Bushberg. “We are currently actively recruiting for our new sales and marketing organization and looking for young and ambitious talents to join our Russian team”.

In 2019, Olainfarm group’s sales reached 137 253 thousand EUR, which is an increase by 10% or 12 997 thousand EUR. Profit for the last quarter of 2019 was 8 245 thousand EUR, which is an increase by 152% in comparison with the same period 2018. Olainfarm sales if compared to 2018 results – sales to Russia increased by 23%, Latvia by 5%, Belarus by 10%, the Central Asian region by 13%, the EU countries by 12%, sales to Other countries by 10%.

read more
JSC Olainfarm strengthens its presence in Russia and establishes a subsidiary