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Southeast Europe’s pharmaceuticals sector gets boost from EBRD
€15 million to Pharma Investments to create regional pharmaceutical retail network
To support the development of local companies and to help create a regional pharmaceuticals network in Southeast Europe, the EBRD is taking a stake worth €15 million in Pharma Investments B.V as part of the group’s €55 million investment programme.
Pharma Investments is a special-purpose vehicle established in the Netherlands which is currently investing in pharmaceutical retail companies in the Central and Eastern European region, including Croatia, Romania, Hungary and FYR Macedonia.
Funds from the EBRD equity investment will be used by Pharma to expand its operations and build a regional pharmaceutical network of at least 500 pharmacies with recognised brand names both through acquisition and organic growth.
Emerging markets have played a significant role in the strong global expansion of the pharmaceuticals sector and their share was estimated at 30 percent of the world pharmaceuticals sales in 2007.
As the demand for health care services increases in Eastern Europe, the companies in Croatia, Romania, Hungary and FYR Macedonia in which Pharma invests will benefit from the group’s know-how and up-to-date practices in corporate and marketing strategy, retail branding, corporate and business conduct, inventory control, customer service and financial transparency. This investment is expected to encourage further foreign investment, particularly in the smaller countries in the region.
By investing in the regional operations of an experienced pharmaceutical company, the EBRD is supporting stronger competition in this dynamic sector through the introduction of a wide range of new product choices and additional services, as well as competitive prices to the final customers, Peter Reiniger, EBRD Business Group Director for Central Europe and the Western Balkans, said.
Guðmundur Ólason, CEO of Milestone, said that EBRD’s support in the development of Pharma Investments is a very import step towards meeting the company’s goal of becoming a leading player in the pharmaceutical retail market in South-East Europe. The potential of this market is enormous and in order to support and ensure rapid growth, it is important to partner with strong institutions such as the EBRD, Mr Ólason added.
Pharma Investments is a subsidiary of the Icelandic investment company Milestone Group plc, an Icelandic private investment company, which through its subsidiaries and asset management vehicle operates in the pharmaceuticals and health sector in a number of international markets.
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