Grindeks Drugmaker Jumps Most in 14 Years on Profit: Riga Mover

AS Grindeks, the biggest Baltic drugmaker with sales in 55 countries, rose the most in 14 years after the company reported a record profit for last year.

Shares of the Riga, Latvia-based company rose as much as 19 percent in the biggest intraday jump since March 1999 on the Nasdaq OMX Baltic exchange. They closed up 10 percent in Riga at 5.1 lats, valuing the company at 49 million lats ($91 million). Volume of 12,849 shares was more than nine times the three-month daily average, according to data compiled by Bloomberg.

Grindeks, which sells two-thirds of its products in Russia, Georgia and other CIS countries, had net income of 9.6 million lats last year, 43 percent more than in 2011, the company reported after trading yesterday. Revenue increased by 19 percent to 82.7 million lats, led by a 38 percent jump in sales of active pharmaceutical ingredients, it said.

“Following the current policy of shareholders, we will have an opportunity to invest even more into the research of patients’ needs, new product development and overall sustainability of the company,” Grindeks Chairman Juris Bundulis said in the statement on the exchange.

Grindeks specializes in drugs to treat heart disease, central nervous-system disorders and cancer, as well as veterinary substances, producing branded and generic final dosages as well as active ingredients for pharmaceutical companies in Russia, Netherlands, Japan, Germany and Ireland, according to the statement.

Funds managed by Stockholm-based East Capital Asset Management held 10 percent of Grindeks shares as of Dec. 31, according to data compiled by Bloomberg.