Biofarma Launched $40 million Manufacturing Facility in Kyiv Region
Biofarma, a leading Ukrainian pharmaceutical manufacturer, officially opened its new state-of-the art manufacturing facility in Bila Tserkva, Kyiv region.
This facility is the first greenfield pharmaceutical plant built in Ukraine, with investment of over $40 million, through a consortium of U.S-Dutch-Ukrainian investors including U.S. investment manager Horizon Capital, Dutch development bank FMO and Ukrainian shareholders. The new plant was designed by Linde (Germany), an international engineering company with extensive experience in the pharmaceutical industry, equipped with modern Italian machinery, is ISO9000 and ISO14001 certified and meets all current regulatory and GMP (Good Manufacturing Practice) requirements. The plant is the first and only Western investment of such scale in the Ukrainian pharmaceutical industry and the best-in-class facility of its kind in Central and Eastern Europe.
Lenna Koszarny, Horizon Capital Founding Partner and Chief Executive Officer, said: “This investment underlines our confidence in both Ukraine’s pharmaceutical sector and in Ukraine. Despite the crisis, the Ukrainian pharmaceutical industry continues to grow by double-digits in US dollar terms to a $3.5 billion market and enormous potential for further growth exists as healthcare spending per capita in Ukraine lags 80% versus Poland or Bulgaria. Biofarma has already demonstrated that the company is on a high-growth trajectory, achieving EBITDA growth of over 80% in the past three years, despite devaluation and challenging conditions. We are confident that Biofarma’s world-class management team and personnel, the quality of its products and the doubling of capacity enabled by the launch of this new facility will drive success to even greater heights. We commend the Company for successfully serving the domestic market and also exporting to over 10 markets worldwide, clear evidence of the quality achieved. We are also proud to join with FMO and our Ukrainian fellow shareholders to invest real capital and create real high-tech jobs at a time when foreign direct investment and job creation is critically needed in Ukraine.” Ms. Koszarny continued, “Most of all, we are proud that Biofarma produces plasma-based drugs for victims of severe injuries and burns, for people fighting cancer, for pregnant women and others who need this help the most.”
Konstantin Magaletskyi, Horizon Capital Partner added: “We are proud to launch the first green field pharma facility of such scale in Ukraine. It is not just another production facility. This plant produces life-saving drugs of the highest quality which offer an affordable alternative to imports. Biofarma is a company which makes a difference in this market and we are proud to be a part of this success story.”
Idsert Boersma, Director Legal of FMO, commented: “We are pleased with the investment into Biofarma’s new state-of-the art production facility and we are confident that the lifesaving drugs Biofarma produces will become more affordable for the Ukrainian people, while its high quality will further pave the way to international markets and provide a base for even stronger growth.”
About Horizon Capital
Horizon Capital (www.horizoncapital.com.ua) is a private equity fund manager that originates and manages investments in mid-cap companies with outstanding growth and profit potential in Ukraine and the region. Currently, Horizon Capital manages three funds, Emerging Europe Growth Fund II (EEGF II), Emerging Europe Growth Fund (EEGF) and Western NIS Enterprise Fund (WNISEF), with over $600 million under management.
About FMO
FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 45 years. Our mission is to empower entrepreneurs to build a better world. We invest in sectors where we believe our contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 8 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. www.fmo.nl
About Biofarma
Biofarma is a top 10 Ukrainian pharmaceutical manufacturer that holds a leadership position in three primary market segments: #1 in plasma protein products; #1 in organic drugs; and #3 in recombinant drugs. Moreover, Biofarma is the only Good Manufacturing Practices (GMP) certified producer of immunoglobulin (plasma protein products) in Ukraine. The company is a forerunner in its domestic market and exports to other countries. www.biofarma.ua
For more information, please contact:
Tetyana Bega Investor Relations Manager Horizon Capital Tel. +380 44 490 5580 e-mail: tbega@horizoncapital.com.ua
Paul Hartogsveld Senior Press Officer FMO Tel. + 31 70 314 9928 e-mail: p.hartogsveld@fmo.nl
