JSC Olainfarm strengthens management and increases share capital

  • 2023-11-30

With a purpose to strengthen corporate management and strategic development of the company, Chairman of the Board Sergejs Korņijenko has been appointed in the Supervisory Council of JSC Olainfamr, the leading pharmacy company in Baltics. The meeting of shareholders has also adopted the decision to increase the share capital of the company up to 35 million euros, in order to ensure further development of the product portfolio and expansion in the export markets of the Western countries.

Vadims Telica, Andrejs Leibovičs, Roberts Tavjevs, as well as Jānis Buls, who is the Chairman of the Supervisory Council, will continue the work in the Supervisory Council of JSC Olainfarm. S. Korņijenko has been approved in the Council instead of Irina Maligina, thus completely closing the transitional period after the change of several majority shareholders.

“We stay together with JSC Olainfarm only for longer than a year, but since the first day we had clear confidence that the company needs a new development strategy and voluminous investments, driving towards the markets of the Western countries, and accordingly a new product portfolio should be created. We have managed to ensure it during a comparatively short period of time, in order to continue the development of JSC Olainfarm in the markets of the Western countries by expanded and competitive product portfolio and the patients of the local market would have medicinal products of Latvian manufacturers available in a broader assortment, reducing dependence from imported medicines,” emphasizes Andrejs Leibovičs, the member of the Supervisory Council of JSC Olainfarm and one of the owners of JSC AB City.

So far the share capital of JSC Olainfarm constituted 30,079,190.2 million euros. Pursuant to the decision of the meeting of shareholders, it will be increased by 4.9 million euros, reaching 35 million euros. That will enable JSC Olainfarm to perform foundation of new subsidiaries in several EU markets, where active registrations of new products currently take place, in order to provide patients with them in accordance with the EU requirements of the registration and commercialization of medicinal products.  Besides, the company is actively working on the development opportunities also in other new export markets, such as USA and Canada, as well as the work on assessment and inclusion of even new products in the product portfolio is continued.

“Since change of the majority shareholders of JSC Olainfarm, the company rapidly changed its historical development strategy, aiming to become a European, modern and efficient company capable of offering high-quality products to the markets of Western countries. Upon increase of the share capital, the shareholders of JSC Olainfarm have reconfirmed that all available resources are dedicated for this purpose in order to develop the product portfolio corresponding with the market of Western countries as soon as possible, taking into account also the whole normative regulation of the EU and continue modernization of the company,” indicates Jānis Buks, the Chairman of the Supervisory Council of JSC Olainfarm.

The strategy of JSC Olainfarm, which was developed at the same time with change of the majority shareholders of the company, provides for JSC Olainfarm to reach the level of TOP 10 European leading pharmacy companies in its therapeutic groups, making voluminous investments in the development and expansion of investment products, covering also new therapeutic groups, such as oncological and antidiabetic medicines. More than 50 new products have already been approved, which will be gradually introduced to the market in the coming years in accordance with the requirements. For example, this year JSC Olainfarm has registered a new medicine used in urology and started registration for several cardiology and anti-inflammatory products in a number of Western European markets, including Germany, Italy, Poland, the Czech Republic, France, Slovakia, the United Kingdom, etc. Shareholders of the company have approved investments of more than 100 million euros for the next five years.

! For attention of the representatives of media:

More detailed information on the work of JSC Olainfarm on the expansion of the product portfolio, the registration of medicines in the markets of Western countries, as well as on the overall development of the Latvian medicine market and the availability of health care services will be provided at a media event/expert discussion on 30 November of the current year at 13.00 at 4 Torņa Street (at "3 Chefs Restaurant"). We invite to register for participation in the event by writing to [email protected] or calling via phone 26588715.

About JSC Olainfarm

JSC AB City's subsidiary Olainfarm is one of the largest companies in the Baltic States with 50 years of experience in the production of medicines and chemical-pharmaceutical products. The company produces high quality, safe and effective products for Latvia and the whole world. Olainfarm's products are exported to more than 60 countries. The consolidated turnover of the company group in 2021 reached 137,7 million euro. The company employs around 840 people on a daily basis, ensuring a 24/7 production process. Olainfarm AS has been awarded the Gold category in the Sustainability Index and has been assessed as a Family Friendly Company.