Ten new products every year: Olainfarm masterplans future gains in Central and Eastern Europe
By investing EUR 100 million over a five year period and developing ten new products a year, AS Olainfarm plans to become one of the top 10 pharmaceutical companies in Central and Eastern Europe.
“We are starting Olainfarm’s 50th year in business in great shape and with ambitious plans. The company’s team has mobilized its forces for the development of new products and strategic conquering of new markets, concurrently making the company’s operations more efficient and working on attracting investments,” explains AS Olainfarm Board Chair J?nis Buks.
AS Olainfarm, which reported turnover of EUR 66.671 million and profits of EUR 7.668 million for the first half of the year, was 17.5% more productive overall than other companies operating in the pharmaceutical industry. In terms of average productivity or turnover per employee, Olainfarm was over 2.5 times more productive than its competitors in Latvia’s pharmaceutical production sector.
“Olainfarm’s model for marketing its medicines, which is already in operation in 15 countries, has delivered a 10% increase in sales, including, for example, in Russia, where growth during the first eight months of this year amounted to 19%, while in Ukraine it was 20%,” reports AS Olainfarm Board Member Elena Bušberga. She added that in the company’s major sales markets, that is, in Latvia, Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan – and in its most important finished medical product groups, AS Olainfarm has reported 11% better performance indicators compared to average growth within the industry.
The company’s successes in the finished medical product market during the Covid-19 period are attributable to the creation of its digital platforms “Open Olainfarm” and “Academy of Doctors”. Meanwhile, active pharmaceutical ingredient and chemical ingredient supply volumes have increased by 17%, because the company has successfully attracted valuable business partners in Italy, USA, Germany, Japan and elsewhere.
“The only way to speed up Olainfarm’s growth is through targeted expansion of its product portfolio. Currently, filling in gaps in the development of products during recent years, in the course of various planning and development phases, 23 new products have already been approved, but we do not intend to rest here. We have set ourselves the goal of developing ten new products a year,” reveals AS Olainfarm Supervisory Board Chair Juris Bundulis. Most of the products already approved are being developed in the therapeutic fields, where Olainfarm has traditionally been most successful, like urology, neurology, cardiology and allergy treatment. In addition, development of new products has already been approved for the treatment of sugar diabetes and oncological illnesses.
The investments required to attain the company’s goals during the next five years amount to EUR 100 million, which are required for the development of new products and technology transfers, as well as the expansion of finished medicine form production lines, development of active pharmaceutical substance production lines, modernisation of quality control laboratories, creation of research and development laboratories, expansion of warehouses, and reconstruction of a wastewater purification station and networks. It is planned that this funding will be obtained through increased efficiency and reinvestment of profits, as well as by securing additional funding.
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About AS Olainfarm
AS Olainfarm is one of the biggest companies in the Baltic states with 49 years of experience producing medicines and chemical pharmaceutical products. In 2020 the conglomerate’s consolidated turnover reached EUR 122,157 thousand. The company’s basic operating principle is to produce trustworthy and effective top quality products for the Latvian and global markets. Currently AS Olainfarm products are exported to over 50 countries and territories around the globe including the Baltic states, Russia, other CIS countries, Europe, North America, countries in Asia and Australia. For more detailed information, please visit: www.olainfarm.com.
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