Olainfarm plans to become one of the top 10 pharmaceutical companies in Europe

With a planned investment of EUR 100 million over the next five years, Olainfarm’s shareholders are supporting the development of the pharmaceutical company’s product portfolio, modernisation of its production equipment and increased capacity for the introduction of new products, along with the development of “green” technological processes. The company aims 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.

Considering 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, believes Juris Bundulis, Chairman of the Board of Olainfarm.

“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 Bundulis.

These major investments will be directed towards the development of new products, bolstering the company’s competitiveness, the modernisation 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.

Announcement made on company’s 50th anniversary

“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 mobilise 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.

Source: Press release. Photo: Shutterstock.