Advancing the company's development and continuing its reorientation to western markets, with a planned investment of EUR 100 million over the next five years AS Olainfarm's shareholders are supporting the development of the company's product portfolio, modernization of its production equipment and increased capacity for the introduction of new products, along with the development of "green" technological processes. The company's objective to become one of the 10 most important pharmaceutical companies in Europe in the next five years, significantly increasing the range of products on offer and their production volumes.
Bearing in mind the trends in the spread of diseases and the possibilities for their treatment, it is neither useful nor economically viable to produce medicines for just one market. Although the market for Latvian medicines is comparatively small, national pharmaceutical companies must play a much greater role in providing patients with the medicines they require. Increasing the volume of local medicines is also a matter of national security, so that in emergency situations, where supply chains are disrupted, as during Covid-19, the public is not left without medicines of lifesaving importance. By developing new pharmaceutical products and increasing their production volume, we will not only become more independent of market fluctuations and disruptions in logistics chains, but we will also quickly reorient ourselves to new markets,” stresses AS Olainfarm's Chairman of the Board Juris Bundulis.
These major investments will be directed towards the development of new products, bolstering the company's competitiveness, the modernization of its production equipment, constructing new active pharmaceutical substance production lines and a solar park, as well as the reconstruction of electrical networks, heating supply and technological steam networks, and wastewater purification systems.
“Olainfarm's 50th anniversary has come at a difficult time - following on the back of the Covid-19 pandemic and during the war started by Russia in Ukraine. Russia is responsible for disrupting supply chains and manipulating the energy market, which also affects the pharmaceutical industry. During this period, it is not easy to secure investments for this region as national funding priorities have changed in favour of aspects of security. Therefore, it is especially gratifying that the company has been able to mobilize funds for investments – both securing its own funds, as well as funding from European Union funds and the European Economic Recovery and Resilience Facility. It is vital for Latvian businesses to secure a foothold in European Union markets and to contribute towards improving the robustness of Latvia's economy so that the pharmaceutical industry increases the country's readiness in the face of potential threats and crisis situations,” said European Commission Executive Vice-President and Trade Commissioner Valdis Dombrovskis.
In the immediate future, Olainfarm plans to significantly expand its presence in both European and Asian export markets, entering new market regions with finished medicines, as well as continuing to supply active substances and their intermediate products to international pharmaceutical companies. Development is planned in all realms of vital importance to public health.
About AS Olainfarm
AS AB City's subsidiary AS Olainfarm is one of the biggest companies in the Baltic States with 50 years of experience in the production of medicines and chemical pharmaceutical products. The company produces reliable and effective products of the highest quality for the Latvian and global markets. In 2021, the conglomerate's consolidated turnover reached EUR 137.7 million. The company's day-to-day operations are performed by 840 employees, ensuring a continual product production process 24/7. AS Olainfarm has won the Gold category in the Sustainability Index and is recognised as being a family-friendly company.
More detailed information is available at: www.olainfarm.com.