JSC Grindeks audited consolidated financial results of year 2006


According to the audited data of year 2006, net turnover of the leading
pharmaceutical manufacturer Grindeks reached 42, 23 millions of lats, which is
31% more than in the year 2005. 

Group's net profit of the attributable to equity holders of the parent in 2006
amounted to 6.59 million lats, which represents an increase of 44% in
comparison to the previous year. The gross profit margin reached 54% in 2006,
whereas the net profit margin is 15.6%, exceeding the level achieved in 2005.
During the reporting year the production of the Group was sold in 36 countries
worldwide, and the export amounted to 39.80 million lats, which is 9.93 million
lats more than in 2005. With the main export markets remaining constant, the
sales amounts of Grindeks finale dosage forms in 2006 reached 38.97 million
lats, increasing by 35% in comparison to the previous year. 
The major part of the turnover from final dosage forms was achieved in Russia
and CIS countries, making 33.92 million lats. Due to the growth of the
pharmaceutical market in Russia by 38%, also Grindeks market share in this
country increased, developing from 0.4 % in 2005 to 0.6% in 2006. The major
turnover was generated from the original product Mildronate, creating 73% of
the total sales amount of the finale dosage forms. In  comparison to the
previous reporting year the sales of Mildronate in 2006 increased by 43%,
reaching 28.58 million lats. Understanding the risk of one product dominating
the product portfolio, the management of the Group, by employing state-of-art
technologies and its employee's high competence and the level of experience,
has continued the successfully initiated work at new products in 2006. As an
example in August 2006, Grindeks acquired patent application “Nucleid reverse
transcriptase inhibitors combination with Mildronate in anti-HIV/AIDS therapy”,
planning to develop medicals in HIV therapy. Clinical trails programme of
international significance continues with the ability to provide an opportunity
to register Grindeks brand products in many countries of the world. 
The company's active pharmaceutical ingredients export made 3.13 million lats
in 2006.  This year was significant for the company's active pharmaceutical
ingredients business in connection with various achievements. In September a
Mutual Recognition Procedure - MRP took place for Grindeks new active
pharmaceutical substance - Detomidine. At the moment Detomidine is the first of
Grindeks new active pharmaceutical ingredients, which has completed the MRP
procedure in 19 European countries. In the end of September 2006, Grindeks
pharmaceutical ingredients plant was audited by an independent third party from
the European Chemistry Federation Active Pharmaceutical Ingredients Committee.
The results of the audit provided a positive conclusion about the compliance of
Grindeks manufacturing plant to all main EU provided guidelines (ICH Q7A) that
regulate manufacturing of the Active pharmaceutical ingredients. 

Company's earnings per share in 2006 were 0.69 lats in comparison to 0.53 lats
in 2005. 

Karlīna Jurjeva
JSC Grindeks Investor relations speciālist
Office: 7083241
e-mail:kjurjeva@grindeks.lv