By Nibal Zgheib
The European Bank for Reconstruction and Development (EBRD) is joining forces with reputable partners to improve the availability and affordability of medicines, using an investment platform with an initial capital commitment of US$250 million.
The EBRD is committing US$75 million to support the company’s growth in Egypt, alongside Development Partners International (DPI), a pan-African private equity firm which is committing US$75 million, and CDC Group, a development finance institution funded by the UK government, with US$ 100 million commitment.
As a first step for the investment platform the partners have acquired Adwia Pharmaceuticals, an Egyptian manufacturer of generic drugs, and Celon Laboratories, an Indian oncology and critical-care product specialist. Adwia will benefit from Celon’s know-how in drug development, including for chronic and life-threatening health conditions.
This investment will also help Adwia Pharmaceuticals to expand and modernise its manufacturing assets, introduce products with higher added value and improve its health and safety standards, product quality and governance in Egypt.
The founding shareholders plan to increase their impact by further expanding the investment platform’s activities.
Egypt is a founding member of the EBRD. Since the start of the Bank’s operations there in 2012, the EBRD has invested over €7 billion(US$8.28billion) in 125 projects in the country.