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EBRD supports export ambitions of Balkanpharma
The European Bank for Reconstruction and Development (EBRD) will lend €21.5 million to Balkanpharma, Bulgaria's leading producer of pharmaceuticals, to support the modernisation of three production sites. The modernisation underpins efforts by the company to raise production standards to Good Manufacturing Practice (GMP) levels, a requirement under both Bulgarian and European Union health guidelines, which will allow the company to maintain traditional export and domestic markets and increase its access to European markets.
Recently privatised, Balkanpharma produces more than 250 branded and unbranded finished generic medicines for human and veterinary use, either as prescription drugs or over-the-counter medicines. The company also exports finished products to more than 20 countries plus pharmaceutical substances to Western Europe and the United States. The finance, together with a €3.2 million Working Capital Facility from BNP Paribas, will allow Balkanpharma to modernise its facilities, upgrade its information systems and raise environmental standards at its production sites in Dupnitza, Razgrad and Troyan.
Jean Marc Peterschmitt, the EBRD's Country Director for Bulgaria, said it is of great importance that the EBRD support recently privatised companies to improve their quality of business and help broaden their markets. That way, he said, the EBRD can have a positive impact on the Bulgarian economy at large.
Following the 1999 privatisation of the three manufacturing facilities, Balkanpharma has striven to streamline production processes and build a cohesive sales and marketing team. This has resulted in significantly increased sales both in Bulgaria and to the company's traditional export markets.
"Despite the achievements so far, there remains the potential for Balkanpharma to become a leading low-cost European pharmaceutical company," said Sindri Sindrason, chief executive officer of Balkanpharma Holding AD. "We are delighted that the EBRD shares our vision for the future of the Bulgarian pharmaceutical sector and has committed to support us in the refurbishment of our production facilities and information technology systems to the highest European levels."
The EBRD has to date invested in 43 projects in Bulgaria, totalling €469 million. The Bank has mobilised in total €1.8 billion of investment.
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