RIGA - Latvia's Olainfarm pharmaceutical group has taken a strategic decision to set up a subsidiary in Moscow, Russia, LETA was told at the company.
Russia is one of Olainfarm's key sales markets and being there is a strategic priority, Olainfarm representatives said. The new subsidiary is expected to enable Olainfarm to explore the Russian market more thoroughly, better respond to clients' needs, manage marketing activities and sales processes.
Until now, Olainfarm did not have direct access to the Russian market and the company supplied its products to CIS countries by concluding partnership agreements.
Olainfarm CEO Elena Busberga said that the Olainfarm brand is well known in Russia and the Latvian company's products are being used to treat neurological and psychiatric disorders as well as urinary tract infections. According to market research data, 1.8 patients in Russia use Olainfarm medications to treat various health issues, such as inflammations, pain, depression and cognitive disorders, Busberga said.
Olainfarm Group’s unaudited net profit in 2019 increased 2.6 times and reached EUR 27.443 million, while unaudited sales reached EUR 137.253 million, which is by 10.5 percent higher than in 2018, according to the company's statement to the Nasdaq.
Olainfarm makes medicines, food supplements, active pharmaceutical ingredients and chemical substances. Olainfarm shares are quoted on the Main List of the Nasdaq Riga stock exchange.