Petrovax Loan

Location:

Russia

Project number:

42310

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

04 May 2011

Status:

Cancelled

PSD disclosed:

09 Mar 2011

Translated version of this PSD: Russian

Project Description

The EBRD is considering a corporate secured loan of up to RUB 630 million to NPO Petrovax Pharm LLC (the “Company”).The proceeds will be used by the Company for commercialisation of three new innovative medicines (the “Project”).

Rusnano (Russian Corporation of Nanotechnologies) is considering potential participation in the Project.

Transition Impact

The transition impact in this Transaction will be achieved through:

  • Increased competition in the sector with introduction of more affordable and effective drugs to the market; and
  • Further improvements of corporate governance, development of strategy and enhancements in operational efficiency.

The Client

NPO Petrovax Pharm is a Russian pharmaceutical company involved in development and production of innovative branded drugs and vaccines. The Company’s main activities include development, registration, production and distribution of patented scientific inventions, primarily in the fields of immunology and viral diseases.

EBRD Finance

A corporate secured loan of up to RUB 630 million.

Project Cost

RUB 1,260 million.

Environmental Impact

Category B. Environmental and social (E&S) issues associated with pharmaceuticals manufacturing can be readily identified and mitigated.

The Environmental and Social Due Diligence (ESDD) consisted of the review of Petrovax’s corporate E&S policies and management systems to assess whether they are adequate to ensure that the Company’s activities and products meet the Bank’s Performance Requirements (PR’s). The ESDD was undertaken through a detailed review of the Company’s answers to the Environmental and Social Due Diligence questionnaires, relevant E&S documents and internal policies, as well as a site visit by Bank’s environmental specialist to the Company’s plant located in Pokrov village of Podolsk district.

The Company’s operations are well managed with a good quality, environmental, health and safety management systems in place, and ISO 9001 certified of compliance with international quality standards. The plant’s production of vaccines and other forms is certified to comply with Good Manufacturing Practices (GMP) for pharmaceutical products. There is a specialised department covering all aspects related to quality management, environmental and health security.

The Company is planning to transfer production of active ingredient for the vaccine to the Pokrov plant in the future. After the move is complete all appropriate environmental controls for air emissions, waste and waste water management will need to be established. The environmental impacts of current mixing and packaging operations at Pokrov plant are associated with hygiene control, air emissions from boiler unit, fuel and water use, and packaging waste management. The social issues are mainly related to maintaining the existing high level of occupational health and safety, as well as pharmacovigilance of the products ensuring their safety for consumers and appropriate recall mechanism. In general, since the plant was newly built and started its operation in 2008 it has implemented state-of-the-art technologies of vaccine production, water treatment, air emissions controls, fire safety and energy efficiency.

Petrovax has an independent unit to coordinate work with authorities and broader stakeholders, including regular meetings with the village council and its residents. There have been no complaints reported from the neighbouring residents.
The Company will provide the Bank with Annual Environmental and Social Reports (AESR) and notify on any material accidents or incidents. The Bank will evaluate the Project’s environmental and social performance in accordance with the Bank’s PR’s through reviewing the Client reporting and undertake periodic monitoring visits.

Technical Cooperation

None.

Company Contact

NPO Petrovax Pharm LLC
Mr. Andrey Gennadievich Semakin, CFO

Tel: +7 (495) 984-2754
Fax: +7 (495) 984-2753
Email: SemakinAG@petrovax.ru

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.