Grindeks looks to expand

The Latvian firm, Grindeks has made a few announcements recently which reveal the firm is aiming to expand its business. On 19th August, the firm reported that it was considering establishing injections manufacturing in Latvia, and was looking at the territory of Riga Free Port as a possible site to construct a new plant, because of economic incentives and tax allowances offered there. However, the firm added that purchasing an existing plant would also be an option. This was followed on 7th September with an announcement that the firm was considering options to develop its ointment business. Here, Grindeks is looking at two possibilities: either move its existing operations in Tallinn, Estonia, to Latvia, or remain in Tallinn, and presumably develop the plant there. As yet, no decision has been made.

Grindeks has, in recent years, been undertaking an investment programme, and these recent announcements are in line with that. In January 2009, the firm opened a new final dosage forms plant; the firm commented that this had been the largest investment project in the company's history, with LVL9.1 million (US$16.8 million) invested over two years. It is anticipated that the new plant will increase manufacturing productivity and capacity substantially, to 1.5 billion tablets and 500 million capsules per year.

Additionally, in August this year, Grindeks also announced that it had introduced a new active pharmaceutical ingredient, ursodeoxycholic acid, used in the treatment of hepatic and gallstone diseases. The new API represents a new medical therapeutic group for the firm, and has been developed as part of a co-operation agreement with the German firm, Marenis Pharma; once again evidence of Grindeks' plans to expand. The firm also announced it had started construction on a new manufacturing unit with an investment of nearly LVL6 million (US$12.5 million), connected with the development of this API. This again is an important move for the company; Germany is a relatively unexplored territory for Grindeks, whose traditional markets have been those of Central and Eastern Europe, the Baltic States and the CIS. Although Grindeks has co-operated with Merck in Germany, its presence there has been limited. The development of new APIs is of course also significant. Despite the economic turmoil of recent months, Grindeks appears to still be on course to expand its horizons.

Ian Platts – Editor, World Generic Markets