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Latvian Kirovs Lipmans’ Pharma Company Grindeks Reports Solid Earnings For 2013

kirovs and-Anna-lipmans-Grindeks 1

On Friday Latvian pharmaceuticals manufacturer the Grindeks Group announced its preliminary, and still unaudited, financial statements for its latest fiscal year ended December 31st, 2013.

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Grindeks’ consolidated revenues were US$ 164 million (Euros 118.5 million) for the 2013 fiscal year, just 1% higher than in 2012. In 2013 its gross profit margins were 60%, with a corresponding net profit margin achieved of 11.6%, resulting in net income in 2013 of US$19 million (Euros 13.8 million).

This net income performance in 2013 is just barely, i.e. US$161, 000 (Euros 117, 000), above the net income delivered in 2012. Coming as it does, however, within the context of an environment of a continuing depressed economy in many of its European markets, this must be considered a stalwart result.

In 2013 almost 95% of Grindeks’ total revenues were derived from exports of its products to almost 60 countries worldwide.

The company managed to achieve a 12.2% net income return on its average-for-the-year book equity base. Year-end book equity at December 31st, 2013 was about US165.9 million (Euros 120.2 million). The company’s market capitalization on the “NASAQ OMX Riga” exchange on Friday of last week was about US$125.6 million (Euros 91 million), which is a significant discount to their book value.

Company founder, Kirovs Lipmans and his wife Anna, together control just under 50% of the company’s shares, with a private equity firm and a regional bank holding another 34%. Accordingly the float is very thin and the shares trade “by appointment” as the saying goes for such thin float stocks. Even so in a little over a year the shares have gone steadily up, by close to 50%.


In commenting on the solid financial results achieved for 2013, Grindeks Chairman of the Board Juris Bundulis was very pleased indeed to say afterwards, “Considering the fierce competition in the pharmaceuticals market place, these achievements are remarkable.”

Grindeks has always been a long-term development-oriented company, and therefore we will also continue to invest in both product portfolio development and acquisition of new markets.”

About Grindeks

Grindeks is the leading pharmaceutical company in the Baltic States. Its’ main fields of endeavour are in the research, development, manufacturing and sales of proprietary products Mildronate® and Ftorafur®, of more than 100 effective and safe generics and of 24 forms of active pharmaceutical ingredients. Grindeks specializes in the heart and cardiovascular, CNS and anti-cancer medication therapeutic groups. Mildronate is used for the treatment of angina and myocardial infarction by inhibiting the carnitine biosynthesis pathway via the inhibition of gamma-butyrobetaine dioxygenase.

The Grindeks Group consists of four subsidiary companies in Latvia, Estonia and Russia, and it has sales offices in 11 countries. Grindeks’ Products are exported to 59 countries and exports comprises almost 95% of the total sales of the company. Its primary markets presently are the Baltic States, Russia and other CIS countries, Germany, the Netherlands, Japan and the United States.

Operating management is today in the hands of company Chairman Julius Bundulis, who obtained his Doctoral degree in Biological Sciences at the University of Latvia; he earlier graduated from the Faculty of Chemistry also of the University of Latvia.

The company’s principal shareholders Kirovs Lipmans and Anna Lipmans are still very much involved with the company, with Kirov Lipmans acting today as the Chairman of its Council – another term for its Supervisory Board – and his wife Anna, a Neurologist, acting as Deputy Chairman of its Council.

About Kirovs and Anna Lipmans

Kirovs Lipmans is a Latvian businessman who was born in 1940. He graduated from the Leningrad Institute of Railway and Transport Engineering, and also from the Faculty of Economics of the University of Latvia. As well as acting as Chairman of the supervisory Council of Grindeks since 2003 he has been the President of the National Latvian Ice Hockey Federation since 1998. Kirovs Lipmans also serves as a Member of the Executive Committee of the Latvian Olympic Committee.

Anna Lipmans was born in 1948. A certified Neurologist she is a member of the Latvian Medical Association, the Latvian Association of Internists, the Latvian Association of Cardiologists and the Latvian Association of Neurologists. She has been a Member of the Supervisory Council of Grindeks since 2008.




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