Ukrainian pharma company acquires enterprise in Uzbekistan using EBRD funds

The Ukrainian pharmaceutical company YURiA-PHARM acquired the Reka-Med pharmaceutical company in Uzbekistan, using €10 million in financing from a loan provided by the European Bank for Reconstruction and Development, the EBRD press service informs.

The EBRD loan will allow YURiA-PHARM, which exports 30% of its products (of which 15% to Uzbekistan), to produce pharmaceutical products locally for the Uzbek market and free up about 10% of its capacity in Ukraine.

The EBRD emphasized that the agreement will improve the availability and accessibility of medicines in Ukraine and Uzbekistan.

"It will also improve YURiA-PHARM’s profitability and will diversify production risks in locating additional manufacturing site outside of Ukraine. It also supports a cross-border acquisition and internationalisation of the company’s operations, making YURiA-PHARM more competitive," said Matteo Patrone, EBRD Managing Director, Eastern Europe and the Caucasus.

YURiA-PHARM signed an initial loan agreement with the EBRD in May 2019, which stipulated financing of €25 million in two tranches.

The first tranche of €15 million was intended to modernize packaging lines, start production of cancer drugs in affordable individual doses and implement energy efficiency measures, while the second, uncommitted tranche of €10 million was intended for further production improvements. It was this tranche that was used to acquire Reka-Med.