EBRD - European Bank for Reconstruction and Development

04/10/2024 | News release | Distributed by Public on 04/10/2024 07:35

EBRD helps Ukrainian pharma producer Farmak expand presence in Polish market

  • EBRD lends €22 million to Ukrainian Farmak Group
  • Loan finances acquisition of a Polish pharmaceutical company and upgrade of IT systems
  • Investment supports Farmak to diversify its product portfolio and increase its export capacity

The European Bank for Reconstruction and Development (EBRD) is supporting Ukrainian pharmaceutical producer Farmak to expand its operations in Poland. The Bank has lent €22 million to support Farmak Group's strategic acquisition of a Polish pharmaceutical company, and to finance the upgrade of Farmak's information technology (IT) systems.

Farmak is a leading pharmaceutical manufacturer in Ukraine, playing a key role in supporting livelihoods in the country. According to its 2028 corporate strategy titled "Farmak 2.0: From local to global success", the company has been pursuing a strategy of expansion to international markets, while at the same time preserving and expanding its current product portfolio in Ukraine. This strategic acquisition in Poland enables Farmak to diversify its product portfolio and increase its export capacity. The EBRD's investment will therefore help Farmak to strengthen its position as a leader in pharmaceutical production in Ukraine and develop its presence in European markets.

Frederic Lucenet, EBRD Global Head of Manufacturing and Services, said: "Farmak is an impressive example of a dynamic Ukrainian company that, despite the very challenging war environment, has managed to preserve its operations and is now thinking strategically about its future direction. We are proud to support Farmak's mergers and acquisitions strategy, which will increase the company's exports to Poland and other European markets and support its long-term growth. We have a large portfolio of pharmaceutical projects in Poland and wish to strengthen ties in the sector between the two countries."

In addition to contributing to Farmak's expansion and business growth, the EBRD's investment also supports the livelihoods of the company's employees in Ukraine. As part of its engagement, the Bank is working with Farmak to implement a structured reintegration programme for its veteran workers and broaden access to training for women entering hard-to-fill vacancies traditionally dominated by men.

With more than 2,800 employees in Ukraine, Farmak is facing a number of challenges related to the war, including issues with recruiting new production personnel and training new hires in line with good-manufacturing-practice standards, as well as a lack of employees and top-managers needed to help grow its international footprint. The company's new programmes in this area will target priority issues to establish a more resilient workforce for its operations, while also broadening access to learning and livelihood opportunities for key groups of employees.

Farmak Group is the largest pharmaceutical manufacturer in Ukraine and a long-standing client of the EBRD.

The EBRD is a leading institutional investor in Ukraine and has deployed more than €4 billion there since the start of the war. As well as supporting the resilience of the private sector, the Bank's strategic priorities in the country are energy security, vital infrastructure, food security and trade finance.