PHARMOSCAR LTD
Status: Completed investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Opham is a leading pharmaceutical distributor based in Antananarivo, Madagascar, distributing over 4,500 medicines from 75 international drug manufacturers. As the number one pharmaceutical distributor in Madagascar, Opham plays a key role in improving access to affordable, high-quality pharmaceutical products, thereby enhancing the standards and availability of healthcare across the country.
What is our funding objective?
FMO was invited to co-invest in Opham by Adenia Partners, a well-trusted partner. The investment consortium (including FMO and Adenia) will support Opham by replacing the company's retiring top management and by enabling a smooth transition with the newly-hired management. FMO and Adenia will partner with the entering management team to boost Opham's growth and geographical exposure, including in most remote areas of Madagascar. By enhancing Opham's governance, financial structure, reporting, and environmental and social management system, the consortium also intends to elevate the company's processes and operations to best international practices, thereby promoting higher standards in the Malagasy pharmaceutical industry.
Why do we fund this investment?
FMO considers the opportunity to invest in Opham attractive both from a financial and a developmental perspective. From financial standpoint, Opham is the clear market leader in a growing market. The company has consistently grown faster than the market with a solid profit margin and a healthy balance sheet. From a development standpoint, the investment creates significant impact by addressing the large gap in healthcare provision in Madagascar. With 92 percent of the Malagasy population living on less than US$1.25 per day, Opham's client base qualifies as bottom of the pyramid (defined as people living on less than US$8 per day). Opham intends to fight the black market (well-established in Madagascar) by targeting the mass market with generic drugs to be sold in higher volumes. This strategy should lead to increasing the affordability and accessibility of high-quality generics in Madagascar, particularly for the bottom of the pyramid.
- Website customer/investment
- http://www.opham.com/?lang=en
- Region
- Africa
- Country
- Madagascar
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 12/21/2015
- End date
- 12/13/2023
- Total FMO financing
- EUR 7.50 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B