Latvian Authorities Certify Nizhpharm Manufacturing Units

Russian generic drugmaker Nizpharm has announced that Latvian state health authorities have certified the company's manufacturing units as in line with European Union GMP principles. The approval follows Latvia's accession to the EU in May 2004, which obliged stricter regulation and inspection of drug production.

Nizpharm's success in gaining entry in the Baltic market is significant for the company, recently acquired by German generic drug producer Stada AG. Although the Latvian drug market is small, with spending at around US$250mn in 2003, the country's relative proximity to the major Western European markets and traditionally high per capita spending represent considerable potential. Nevertheless, likely local rivals such as Grindeks, Olainfarm and Riga Pharmaceutical have already shifted to an export-driven business model, and Nizpharm is likely to face strong price competition in nearby Eastern European markets.