LaprophanStatus: Approved investment
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Who is our customer
Founded in 1949 by Abderrahim Bennis, Laprophan is a pioneering pharmaceutical company and nowadays stands out as one of the undisputed leaders in the manufacturing, distribution, import and export of pharmaceutical products in Morocco. The company distributes its own branded products and imported finished products from large international laboratories, providing patients and healthcare professionals with a wide range of medical drugs covering over 40 specialties. Laprophan also exports products to more than 30 countries across Africa and the Middle East and is an internationally renowned brand in the region.
What is our funding objective?
Through its investment, the consortium - consisting of MC IV, FMO, DEG, and Proparco - aims to support Laprophan’s growth and expansion plans, supplying the demand for generic drugs in Morocco and Sub-Saharan markets.
Why do we fund this investment?
FMO considers this an attractive investment opportunity as it provides us with a possibility to invest in i) an attractive asset as one of the top pharma companies in Morocco, ii) strong commercial thesis on the back of growing demand and access to pharmaceuticals in Morocco and Sub-Saharan markets, and iii) ample opportunity for value-add as FMO supports Laprophan in terms of improving Environmental & Social practices and the Corporate Governance structure of the company.
What is the Environmental and Social categorization rationale?
E&S Category is B+ due to the new greenfield manufacturing plans. The following IFC Performance Standards are applicable: PS 1 (assessment and management of Environmental & Social risks and impacts), PS 2 (labour and working conditions), PS 3 (Resource efficiency and Pollution Prevention), PS 4 (Community Health, Safety and Security). IFC PS 5 (Land Acquisition and Involuntary Resettlement), PS 6 (Biodiversity conservation and sustainable management of living natural resources), PS 7 (Indigenous Peoples) and PS 8 (Cultural Heritage) are not applicable as both old and new facilities are located in existing industrial zones. The main risks are associated with technical safety, occupational health and safety, resource efficiency and pollution prevention. This transaction allows FMO to explore further impact opportunities with the other shareholders.
- Infrastructure, Manufacturing and Services
- Publication date
- Effective date
- Total FMO financing
- EUR 14.50 MLN
- FMO NV
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)