A USD 25 million subscription to support the capital increase of Kelix Bio Limited (or "the Company"). The capital increase will support the Company's growth plan through funding an acquisition in Morocco and will also be subscribed by a group of co-investors: BII (formerly CDC), a development finance institution funded by the UK government, and ADP III, a private equity fund advised by Development Partners International (DPI), a pan-African private equity firm.
The Bank's proceeds supported the acquisition of a leading Moroccan branded generic pharmaceuticals manufacturing company, Pharmaceutical Institute (or "PHI" ). The acquisition of PHI will allow the Company to access the large and growing Moroccan market and act as a one step forward towards the implementation of the Company's strategy to become a leading regional player in the specialty pharma generics focused on Africa, particularly the North African market.
The acquisition will complement the Company's existing portfolio of assets and further enhance cross-synergies through knowhow and products transfer to Morocco from other Kelix Bio portfolio companies. The project also supports the wider roll out in Morocco of affordable first to market specialty generics to replace expensive original pharma products across life threatening diseases.
ETI score: 68
Competitive: The project supports the introduction of new products that are currently rare in the Moroccan market; lowering costs of the new products and stimulating competition, and enables operational improvements of the acquired targets by capturing revenues and cost synergies derived from the efficiency measures and particularly cross-selling of products between the Company's acquired targets
Well-Governed: The project will support the development and implementation of Business Integrity, Corporate Governance, and Environmental, Health & Safety and Social improvements for the acquired targets.
KELIX BIO LIMITED
KELIX BIO LIMITED, an existing investee of the Bank, is a limited liability company established in 2020 with three founding shareholders: EBRD, BII and ADP III to create an integrated generic pharma champion with a specific focus on the North Africa region.
EBRD Finance Summary
Total Project Cost
The EBRD's investment will provide equity in a country and region that lack adequate local equity markets. EBRD's participation and support will help the Company continue to implement improved ESG measures.
Environmental and Social Summary
Category B (ESP 2019). Medium-Low risk rating. The Bank's participation in capital increase in the existing equity client KelixBio to fund acquisition of the PHI pharmaceutical manufacturing site in Rabat, Morocco is associated with E&S risks that can be mitigated via ESAP implementation and the application of the client's corporate risk management approaches post-transaction. The acquired manufacturing unit is EU GMP certified by French authorities, and is operating in line with high pharmacovigilance standards. The subsidiary will be subject to application of the platform's ESMS and related training of staff to ensure consistency and best practice application. There will also be a number of improvement in waste storage and management at the manufacturing facilities. The warehouse in Casablanca is not included in the acquired assets. Based on the results of an independent ESDD the target-specific Environmental and Social Action Plan (ESAP) was agreed with the client. There are no GET elements identified for the transaction.
Technical Cooperation and Grant Financing
PSD last updated
26 Sep 2022
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