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JSC Olainfarm strengthens management and increases share capital

on November 29, 2023

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.

JSC Olainfarm strengthens management and increases share capital