IDB Invest has provided a 10-year loan of up to $70 million to Megalabs, a leading pharmaceutical group in Latin America.
The funds will strengthen the production of essential medicine for the elderly and will support investments in eight countries, including Argentina, Bolivia, Chile, Colombia, Ecuador, Peru, the Dominican Republic and Uruguay.
The loan will finance fourteen investment projects that include the expansion of existing pharmaceutical production plants, modernisation and expansion of antibiotic plants, investments in efficiency programmes, best practices in laboratory and manufacturing, and the purchase of machinery and equipment.
The greatest advancements in preventing, treating and curing diseases related to increasing age have been thanks to greater access to medicine. In 2020, some 58 million people in Latin America and the Caribbean were over 65 years of age, and it is estimated that in 2030 this will rise to 145 million people, which is equivalent to almost one in five people in the region, according to the United Nations. The need to improve access and at affordable costs becomes an essential aspect to maintain quality of life and life expectancy.
The project is expected to increase the regional production of pharmaceutical products with a positive impact on exports. Likewise, it is estimated that during 2022-2026 Megalabs will introduce around 140 new locally manufactured products to the market.
Megalabs’ expansion is expected to create new direct and indirect jobs, which will be supported by IDB Invest through technical advisory to diagnose, develop a regional strategy, and train in the area of gender equality, diversity and inclusion.
Megalabs will also implement a corporate governance action plan to continue advancing in the improvement of management and control functions, as well as the development of a risk matrix adjusted to the characteristics and constant growth of the group.
The deal is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Production and Responsible Consumption (SDG 12), and Partnerships for the Goals (SDG 17).