Olaine, August 31, 2017

Consolidated Sales of Olainfarm in Six Months Exceed 62 Million  

Unaudited consolidated Income Statement of AS Olainfarm for first six months of 2017 shows that the sales of the Group have reached 62.7 million euros, which represents an increase by 17% compared to the same period of 2016.  This makes it yet another best half-year in corporate history in terms of sales. The net profit of 6 months was 5.7 million euros, which represents a reduction by 7% compared to the first half of 2016.  Sales costs in 6 months of 2017 have increased by 4 million, and foreign exchange fluctuations caused another million euros loss. The major sales markets of AS Olainfarm during this period were Russia, Latvia, Belarus and Ukraine.

Second quarter of 2017 has, in terms of sales, been the best quarter in corporate history as sales during this period have increased by 25% and reached 34.1 million. Main contributors to such growth have been significant shipments of PASA to The World Health Organization and serious sales increases in Latvia and Uzbekistan.

During the first six months period of 2017, sales to all major markets of AS Olainfarm continued increasing, except Ukraine, where they shrunk by 40%, and Uzbekistan, where they shrunk by 21%.  Significant sales increases have been achieved to The Netherland, where sales grew by 600%, Italy (by 56%) and Kazakhstan (by 555). During the first six months of 2017 products of AS Olainfarm were sold to 41 countries in five continents.

Two best selling Olainfarm products during this period were CNS medicines Neiromidin and Noofen.  Conpared to the last year, share of products of soluble furaginum in total sales has slightly increased, while share of Adaptol has decreased from 14% to 11%.  Remantadin has again made it to top ten best selling products of Olainfarm.

During the reporting period, registration processes were completed in Armenia, Albania and Azerbaijan.  Registration processed have been started in Nepal and continued in Turkey, Armenia, Myanmar, Cameroon and Vietnam. Registration of medicines produced by NPK Biotest are started in Belarus.  Parent company itself has submitted one more dossier in Turkey and is soon expected to launch several painkilling an anti-inflammatory medicines.

Annual meeting of shareholders of A/s “Olainfarm” convened on June 1, 2017 approved operating plan of the Group for 2017.  According to it, sales of the Group in 2017 are planned to be 127 million euros, but the net profit will reach 15.5 million euros.  According to this unaudited report for first half of 2017, during the first six months 49.3% of annual sales target and 36.8% of annual profit target is met. Taking into account a considerable deviation in schedule to achieving the profit target, the Board will soon decide on reviewing Groups profit target.

Consolidated statement of comprehensive income

 JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 40 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of company's operations is to produce reliable and effective top quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 35 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

Information prepared by:

         Salvis Lapins

         JSC Olainfarm

         Member of the Management Board

         Rupnicu iela 5, Olaine, Latvia, LV 2114

         Phone: +371 6 7013 717

         Fax: +371 6 7013 777

         E-mail: Salvis.Lapins@olainfarm.lv