12:06 24.03.2021

Farmak notes strategic role of partnership with EBRD

3 min read

JSC Farmak pharmaceutical company and the European Bank for Reconstruction and Development (EBRD) have signed four loan agreements totaling EUR 67 million over 15 years of cooperation, the company's press service told Interfax-Ukraine, stressing the strategic role of partnership with EBRD in the development and modernization of production.

According to the statement, the management of the pharmaceutical company familiarized EBRD President Odile Renaud-Basso with the production lines for which the loan was allocated.

During a recent visit, the EBRD President and officials praised the implementation of the investment in Farmak's growth over the last 15 years, according to the press release. The bank's representatives said that the EBRD values long-term partnership projects that allow observing the continuous development of companies,

"The EBRD's investment is one of the first steps in transforming the company from a local manufacturer into a major international player. We value this cooperation and consider the EBRD our key strategic partner," Chairman of the Supervisory board Filya Zhebrovska said.

The funds of the first EBRD loan in 2006 were used to modernize the production facilities of sterile and non-sterile production facilities, as well as to bring the facilities to the Good Manufacturing Practice standards.

In 2013, Farmak received investments from the EBRD to modernize warehouses and research laboratories and to expand tablet production capacity.

In 2014, Farmak received a third loan from the EBRD to support the company's operations. Subsequently, the EBRD supported Farmak in obtaining a license to invest abroad, which was another step towards the development of the enterprise's international activities.

Farmak received the fourth EBRD loan in 2019. These investments were made in the construction of a new liquid medicine manufacturing facility, office and laboratory facilities, and energy efficiency measures at manufacturing facilities.

Farmak's Executive Director Volodymyr Kostyuk said that cooperation with the EBRD allowed the company to master new approaches and modern business standards.

"The first loan was probably the most difficult for us. This included new international reporting standards, and additional environmental requirements, and constant monitoring of the use of loan funds and the construction process. At first we hired consultants, but very quickly learned to report on our own. But these 15 years of cooperation have changed us. We have grown. We are grateful to the EBRD for the genuine interest in business development and professional support," he said.

Farmak is the leader of the Ukrainian pharmaceutical market with a 5.9% stake in monetary terms.

Over the past five years, Farmak's investments in the scientific and technical complex, production equipment and research activities amounted to UAH 3.4 billion.