Ukrainian pharma company makes Uzbek acquisition with EBRD financing
Ukrainian "Yuria-Pharm" has acquired "Reka-Med", a pharmaceutical company in Uzbekistan, financing the purchase with €10mn loan from European Bank for Reconstruction and Development (EBRD).
This loan is expected to allow the company to manufacture products locally for the Uzbekistan market and allow it to use its freed-up capacity to produce high-demand medicine in the home market. "Yuria-Pharm" is one of the leading Ukrainian pharma companies and currently exports its products to over 40 countries around the world.
Buying an Uzbek company to manufacture locally reportedly was the best strategic response given the war, which has made exports more difficult and expensive.
“This transaction will increase the availability and affordability of drugs in both Ukraine and Uzbekistan. It will also improve the company's profitability and will diversify production risks in locating additional manufacturing sites outside of Ukraine. It also supports a cross-border acquisition and internationalization of the company’s operations, making it more competitive,” said Matteo Patrone, EBRD Managing Director, Eastern Europe, and the Caucasus.
"Reka-Med" is a joint Uzbek-British company established in 2006. The company is mainly involved in the production of IV infusions.