São Paulo, December 17, 2018 — IFC,
a member of the World Bank Group, is coordinating a BRL 365 million financing
package to support the merger of the businesses of Farmoquimica S.A., a
subsidiary of the Argentinean Laboratorios Roemmers, and Divcom S.A., a
Brazilian specialist in over the counter (OTC) products based in Recife,
in Brazil. The business combination, completed in September 2017, created
the FQM group, one of the most diversified pharmaceutical groups in Brazil,
focused on branded prescription drugs, OTC medicines and dermatology products.
IFC’s financing package consists of three
parts: an 8-year BRL 65.1 million loan for IFC’s own account, a 6-year
BRL 31 million loan for IFC’s own account, and the issuance of a 6-year
BRL 268.9 million debenture coordinated by Bradesco BBI.
IFC’s investment in the FQM group is helping
to expand the availability of OTC quality medicines to patients throughout
Brazil, including its poorest regions. Medicines that are sold OTC help
reduce pressure on the healthcare system. About 50 to 60 percent of medication
used in Brazil are OTC, as opposed to prescription medications. According
to the World Health Organization, responsible self-medication use of OTC
drugs can provide quick and effective care for simple ailments, and thus
reduce the cost of care for many patients as well as reduce the pressure
on the healthcare system.
“We are excited to partner with FQM group
for IFC’s first investment in the pharmaceutical sector in Brazil. This
is part of IFC’s strategy to support efficient pharmaceutical producers,
distributors, and retailers which can contribute to the expansion of affordable
and accessible quality healthcare in Latin America”, said Carmen Valéria
de Paula, IFC’s Principal Investment Officer for the health and education
sectors in South America. “Generics and OTC medicines are critical
to reduce the cost of healthcare, especially in emerging markets”, she
In the last ten years, IFC has committed
over US$ 1 billion in investments in the health sector in the Latin America
and Caribbean region, including both investments for IFC’s own account
and mobilized from commercial lenders and the capital markets. Of that
amount, US$ 506 millions were invested only in Brazil.
IFC has been investing in Brazil’s private
sector since 1957 to address the country’s most critical development challenges,
including those of the urbanization, social inclusion, competitiveness
and productivity, and management of natural resources.
IFC—a sister organization of the World Bank
and member of the World Bank Group—is the largest global development institution
focused on the private sector in emerging markets. We work with more than
2,000 businesses worldwide, using our capital, expertise, and influence
to create markets and opportunities in the toughest areas of the world.
In fiscal year 2018, we delivered more than $23 billion in long-term financing
for developing countries, leveraging the power of the private sector to
end extreme poverty and boost shared prosperity. For more information,
About FQM GROUP
Founded in 1932 by the Italian doctor Ermínio
Vella, FQM is a Rio de Janeiro headquartered pharmaceuticals group that
produces and markets prescription drugs, dermocosmetics and nutrition products.
FQM portfolio includes more than 90 branded products among several specialties
(dermathology, gyno, ENT, pediatrics, orthopedics, cardiology among others).
Since FQM was incorporated into Roemmers group in the early 2000s, several
successful acquisitions were made including Invictus in 2012, in
the symbiotics segment, Melora, in dermacosmetics segment in 2016,and Divcom
in the OTC segment in 2017. Divcom, founded in Recife in 2000 is a successful
OTC manufacturer and distributor, with a portfolio of dermacosmetics, drugs
and food supplements, with very strong brand recognition such as Varicell,
Calcitran or Imecap