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Pharma Tech Outlook | Wednesday, April 07, 2021
The loan will be used to support Neolpharma’s expansion plans, which include the expansion of its manufacturing facilities for high-specialty products and Active Pharmaceutical Ingredients (APIs), the essential raw material used in the manufacture of medicines.
FREMONT, CA: Neolpharma, a Mexican pharmaceutical company focusing on R&D, manufacturing, distribution, and commercialization of high-specialty generics for the private and public health systems, will receive a US$30 million loan from the International Finance Corporation (IFC), a member of the World Bank Group, to meet the rising demand for high-specialty medicines among the region’s middle and low-income population.
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Budget constraints have increased due to the Covid-19 crisis and other macroeconomic factors. By financing Neolpharmas expansion plan, IFC will contribute to increase the access and affordability of high-quality medicines in Mexico and the LAC Region for the middle to the low-income population in important therapeutic areas such as cardiovascular, oncology, central nervous system, and diabetes,” said Juan Gonzalo Flores, Country Manager, IFC Mexico.
The loan will be used to support Neolpharma’s expansion plans, which include the expansion of its manufacturing facilities for high-specialty products and Active Pharmaceutical Ingredients (APIs), the essential raw material used in the manufacture of medicines.
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Efren Ocampo, CEO of Neolpharma group, said: “We are eager to collaborate with IFC in accelerating our expansion plans, while also focusing efforts towards sustainability and long-term growth. By investing on production capabilities, we aim to bring more resilience to our production supply chain. Neolpharma remains strongly committed on improving accessibility of high-quality medicines to benefit underserved populations.”
A US$15 million loan from IFC’s own account and a US$15 million loan from the Canada-IFC Blended Climate Finance Program make up the US$30 million funding package (BCFP). This is IFC’s first deal in the pharmaceutical sector to provide BCFP financing. At least US$15 million of the loan will be used to invest in climate change projects. The activity will lead to a reduction of 11,400 tons of greenhouse gas emissions per year and the introduction of climate change mitigation projects such as waste heat recovery for effective cogeneration in manufacturing sites, rooftop Solar Photovoltaic (PV) with battery storage, and green buildings accredited under the Excellence in Design for Greater Efficiencies (EDGE)
Neolpharma will be one of the first pharmaceutical firms in the world to be EDGE accredited. Every year, healthcare expenses drive 100 million people below the poverty line across the globe. IFC collaborates with generic pharmaceutical firms and multinational medical technology companies to offer the most up-to-date medical care to developing markets at a reasonable price.
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