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Ukraine’s YURiA-PHARM makes Uzbek acquisition
The original loan agreement with the EBRD was signed in May 2019 by YURiA-PHARM's main operating unit, LLC YURiA-Pharm, which manufactures prescription medicines and medical devices.
- By Newsdesk
- Ukraine
- Apr 01, 2023
YURiA-PHARM, a leading Ukrainian pharmaceutical company, has acquired Reka-Med, a pharmaceutical company in Uzbekistan, using €10 million in financing repurposed from an existing loan made by the European Bank for Reconstruction and Development. (EBRD).
The EBRD loan will enable YURiA-PHARM, which exports 30% of its production (with 15% going to Uzbekistan), to produce pharmaceuticals locally for the Uzbek market and free up about 10% of its internal production capacity to allocate more critical medicine to the domestic market. The top-five manufacturer's products are sold throughout Ukraine and exported to over 40 countries.
"Both Ukraine and Uzbekistan will benefit from increased drug availability and affordability as a result of this transaction." It will also boost YURiA-PHARM's profitability and diversify production risks by locating an additional manufacturing facility outside of Ukraine. It also facilitates cross-border acquisitions and internationalisation of the company's operations, making YURiA-PHARM more competitive," said Matteo Patrone, EBRD Managing Director for Eastern Europe and the Caucasus.
The original loan agreement with the EBRD was signed in May 2019 by YURiA-PHARM's main operating unit, LLC YURiA-Pharm, which manufactures prescription medicines and medical devices. It borrowed €25 million in two installments: a committed first tranche of €15 million for packaging line improvements and the introduction of an affordable customised dose cancer treatment, as well as energy efficiency measures; and an uncommitted second tranche for additional production improvements. This second tranche of €10 million has now been committed and repurposed in order to acquire Reka-Med.
Since Russia's invasion, the EBRD, Ukraine's largest institutional investor, has stood firmly by the country. The Bank has pledged to invest €3 billion in Ukraine's real economy in 2022-23, with €1.7 billion deployed in 2022 and an additional €200 million mobilised from partner financial institutions. The EBRD's Crisis Response Special Fund provided a €2.5 million first loss risk cover guarantee for the loan to YURiA-PHARM.