Published on 11/01/2016 in Investments
EIF issues € 25 million loan to Greek pharma manufacturer Pharmathen
The European Investment Bank (EIB) has signed an agreement of € 25 million for research, development and innovation activities with Pharmathen S.A.
This is the first EIB transaction in Greece supported by “InnovFin – EU Finance for Innovators”, which is financially backed by the European Union under Horizon 2020 Financial Instruments.
“InnovFin MidCap Growth Finance” is EIF’s program to improve access to risk finance for research and innovation projects of midcap and SME companies throughout the European Union.
In 2014, the EIB invested almost € 1.6 billion in the Greek economy in 2014, of which 75% was invested in energy and transport infrastructure and 13% for SME support. Over the past five years, the EIB has invested € 7.7 billion in infrastructure, SMEs and energy projects in Greece.
Pharmathen is one of Greece’s largest generic drug manufacturers founded in 1969. The company owns three state-of-the-art research laboratories and two manufacturing units in Greece and employs around 1,000 people. Its RDI activities are managed from its headquarters in Athens.
Pharmathen products are sold in over 80 countries worldwide. By accelerating its RDI programs, the project will allow the company to maintain its competitive edge in international markets. Additionally, it will strengthen Pharmathen’s cooperation with local and European suppliers, universities and research institutes. Overall, it will contribute to add value of Greek manufacturing goods and increase the industry’s competitiveness.
The € 25 million loan will finance the development and production of high-quality pharmaceutical products geared mainly to export markets.
“We are aiming to pave the way and demonstrate that innovative financial instruments such as ‘InnovFin – EU Finance for Innovators’ can make a difference in boosting research and innovation; and this is of the utmost importance for the future of Greece as well as Europe”, EIB President Werner Hoyer stated.
As one of few Greek companies, Pharmathen has been nominated for the European Business Award 2014-2015, including it in the list of Europe’s top 110 companies. In June 2015, BC partners, a leading international private equity firm announced it would acquire a majority stake in the Pharmathen in order to further strengthen its global position.