Grindeks: On "Grindeks" results in the first nine months of 2017

Turnover of "Grindeks" reaches 95.9 million euro in the first nine months of
2017; profit - 6.5 million euro
Today, on 27 November, the JSC "Grindeks" submitted the non-audited
consolidated financial statements for the first nine months of 2017 to "Nasdaq
Riga". Non-audited financial results indicate that the Group's turnover in the
first nine months of 2017 was 95.9 million euro and has increased by 23.5
million euro or 32% in comparison to the first nine months of 2016. In the
first nine months of 2017, the Group's net profit, attributable to shareholders
of the parent company, was 6.5 million euro and has increased by 0.04 million
euro or 1% compared to the first nine months of 2016. Gross profit margin in
the first nine months of 2017 was 58%, while net profit margin was 7%. In the
first nine months of 2017, the Group's production was exported to 69 countries
worldwide, a total of 88.8 million euro which is by 24.0 million euro or 37%
more than in the first nine months of 2016. 

Sales volume of the final dosage forms of "Grindeks" in the first nine months
of 2017 was 89.7 million euro and has increased by 23.8 million euro or 36% in
comparison to the first nine months of 2016. In the first nine months of 2017,
the sales amount in Russia, other CIS countries and Georgia reached 58.9
million euro, which is by 20.7 million euro or 54% more than in the first nine
months of 2016. In comparison to the first nine months of 2016, in the first
nine months of 2017 the biggest increase in sales volume has been reached in
Tajikistan (2 times), Russia (87%), Azerbaijan (40%), Kirgizstan (36%), Ukraine
(28%) and Armenia (26%). 

The sales volume in the Baltic States and other countries in the first nine
months of 2017 reached 30.7 million euro which is by 3.1 million euro or 11%
more than in the first nine months of 2016. The sales volume in the first nine
months of 2017, compared with the first nine months of 2016, has increased by
78% in France, by 73% in Czech Republic, by 52% in Spain, by 47% in Vietnam. In
the first nine months of 2017, the sales volume in Latvia reached 5.4 million
euro and has decreased by 0.05 million euro or 1% in comparison with the first
nine months of 2016. 

In the first nine months of 2017, sales of the active pharmaceutical
ingredients reached 5.3 million euro, which is by 0.6 million euro or 12% more
than in the first nine months of 2016. During this reporting period "Grindeks"
mainly exported its active pharmaceutical ingredients to the EU countries,
Canada, Australia and Japan. The most required active pharmaceutical
ingredients of "Grindeks" in the first nine months of 2017 were zopiclone,
oxytocin, pimobendan, ftorafur, xylazine and medetomidine. 

The Chairman of the Board of JSC "Grindeks" Juris Bundulis: "In the first nine
months of this year "Grindeks" Group has shown a notable increase in turnover.
In the fierce competition among pharmaceutical companies, we have achieved
remarkable results -investments in marketing and sales have met expectations,
showing successful return and opening up new opportunities. Also in the future,
we will mostly focus on export growth and product portfolio development." 

About "Grindeks"

"Grindeks" is an international, vertically integrated pharmaceutical company.
Main fields of action are research, development, manufacturing and sales of
original products, generics and active pharmaceutical ingredients. The Group of
"Grindeks" consists of five subsidiary companies in Latvia, Estonia, Russia and
Slovakia as well as representative offices in 12 countries. 

"Grindeks" specializes in the heart and cardiovascular, CNS and anti-cancer
medication therapeutic groups. A range of products covers a successful
combination of original products and generics, with the original products
Mildronate and Ftorafur. Currently "Grindeks" produces 23 active
pharmaceutical ingredients. 

In 2016 the company's products were exported to 71 countries and it comprised
91% of the total turnover. The key markets include the EU countries, Russia and
other CIS countries, the U.S., Canada, Japan and Vietnam. 

To increase production capacity and develop infrastructure, the company has
accomplished many significant investment projects, investing over 90 million
euro over the last 15 years. 

         Further information:
         Laila Klavina
         Head of the Communications Department, JSC "Grindeks"
         Phones: ([phone], ([phone]
         Fax: [phone]
         [e-mail]

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