Today during the press conference Chairman of the Management Board of JSC Olainfarm Mr. Valerijs Maligins announced that JSC Olainfarm has purchased 100% of shares in SIA “Ilmas aptiekas” and SIA “Juko 99”. These companies combined own 18 points of pharmaceutical sales in Riga, agglomeration of Riga, Vidzeme (north-east) and Kurzeme (west). With this transaction JSC Olainfarm has also indirectly become an owner of 50% of shares in pharmaceutical wholesale company SIA “Farm Impeks” owned by SIA „Ilmas Aptiekas”. Total value of the transation remains confidential and will not be disclosed until the first stage of acquisitions is completed.
“This is just a beginning of Olainfarm’s operations in pharmaceutical retail business in Latvia. Development, production and distribution of top quality medication remain our priority, but experience shows that distribution of medicines in Latvia is particularly successful once you have a direct access to customers. We think that this business is attractive enough to continue investing in it. Our very near future plans include expanding the pharmacy network to 30 points of sales, but by the middle of the next year we might be managing about 40 pharmacies” said Valerijs Maligins, Chairman of Olainfarm’s Management Board.
JSC Olainfarm announced its intentions to create a pharmacy chain in May 2010. According to plans of JSC Olainfarm the sales in 2011 of chains already purchased will be in the area of 4 million lats (5.7 million euro). In future JSC Olainfarm may also get involved into e-pharmacy business.
As a direct owner of pharmacy chain, JSC Olainfarm will be able to ensure that its products and products of other producers will be available to customers for more friendly prices. Also, the top level pharmaceutical care will be available to clients, as very many top level professionals are working in the pharmacy chain: 72% of all employees have respective university degree. JSC Olainfarm does not plan any significant changes either to number of composition of staff. Mr. Ilmars Pajuste, former co-owner of SIA “Ilmas Aptiekas” will remain as the Chairman of the management board of the pharmacy chain.
The first pharmacy was opened by SIA “Ilmas aptieka” in autumn of 1994 in the premises of „Veselibas Centrs 4” on Krisjana Barona iela 115 in Riga. During the last 17 years network of SIA “Ilmas aptieka” has increased to 17 points of sales in Riga, agglomeration of Riga, Vidzeme and Kurzeme. SIA “Juko 99” owns one pharmacy in Riga.
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:
Member of the Board
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