Grindeks                                                    20.05.2005.



AS “Grindeks” information regarding the decisions taken at shareholders meeting 



On May 18 the ordinary shareholders meeting of the major Latvian pharmaceuticals 

manufacturer JSC Grindeks took place. During the meeting a range of important decisions 

regarding the future growth of the company   was taken. The decisions taken concerned 

the allocation of 2004 profit to the future development of the company, share capital 

increase etc. 



The major Latvian manufacturer of pharmaceuticals, JSC Grindeks declared audited profit 

of 2,44 millions LVL in year 2004, which is an increase of 82% comparing to year 2003 and 

the shareholders resolved about  the allocation of profit  to enhance company’s development 

and strengthening of competitiveness.



A decision was taken to issue extra 1,85 millions of shares, thus increasing Grindeks share 

capital to 9,58 millions LVL, acquiring additional financial resources for further development.

The chairman of the Management Board, Valdis Jākobsons commented: “Grindeks is a world 

class pharmaceutical company with a resounding potential, in upcoming years planning to double 

the sales volumes.



The Management Board of the Company considered share emission as being the best way for 

enhancement of consistent growth both in quantity and quality corresponding to the plans built”.



The profit of 2004 and financial resources obtained by the increase of share capital of the 

Company will be invested in development of the Company, giving priority for investments in 

fields like the launching of new products, optimizing of promotion, increase of production 

capacity and acquisition of enterprises, thus allowing Grindeks to attain its strategic 

objectives more efficiently. 



At the moment Grindeks has submitted documents for raising financial resources from EU 

Structural funds aiming to develop a new laboratory at the Plant of Active pharmaceutical 

ingredients. The total sum of the project is planned to be 3,3 millions LVL, composing 

1,5 millions LVL of EU funding. The application of two more projects is in the stage of 

development, in order to claim for the EU funding.



Designing of a new plant for the Final dosage forms business structure of the Company has 

been undertaken. In two years it is planned to finish the building of the new plant, thus 

allowing increasing at least twice the production capacity of pellets and tablets produced 

at Grindeks.

At least 5% to 8% of the annual turnover company invests in research and development and more 

than 2 millions LVL are planned to invest in various research projects in 2005.



The shareholders entrusted Grindeks Management Board to evaluate the possibility to move the 

shares of the company listed on the I-List  to the Main List of Riga Stock exchange. Valdis 

Jākobsons, the chairman of the Management Board informed shareholders that it might be 

possible to move the shares to the Main List to the end of the year, thus enhancing an 

attraction of international capital  investments to the development of the company.



Solvita Ulmane,

Grindeks Head of  Public relations department 

7083448