This equity investment will support the development of Biosidus and thereby improve access to biologic therapies.
Biosidus is an Argentinian family-run business set up in 1983, which develops, manufactures and distributes “biologically similar” drugs (“biosimilars”) in Argentina and in some thirty emerging and developing countries.
A biosimilar is a drug developed using living matter of biological origin – as opposed to traditional pharmacopoeia of chemical origin – and is “similar”, in terms of equivalent quality, efficacy and safety, to its previously developed and marketed reference biological drug. Biological drugs prevent and treat serious, chronic and disabling disorders whose complex and progressive medical need cannot be covered by traditional medicine.
The investment involves a joint and majority equity investment by the ACON ALAOF IV/ FMO/ PROPARCO consortium to support Biosidus for:
- the institutionalization of the company (management and capital transition, financial and organizational professionalization, strengthening of strategic management, alignment with the highest ESG standards),
- the coverage of a CAPEX plan to double the production capacity and launch new drugs,
- the optimization of the R&D cycle.
This investment should allow Biosidus to expand access to a biological therapy to some 130,000 patients during the first five years of the holding of the consortium.
Access to biological therapies remains a crucial issue, as only health systems in the most advanced countries are able to cover their costs. Biosimilars specifically provide a response to this issue, as they have a significantly lower level of R&D and production costs compared to their reference drug, and are available at a more affordable retail price.
Biosidus is a leading player on the global biosimilar market and its range comprises an unparalleled product mix and geographic footprint.
PROPARCO will play an advisory role for the ESG aspects of this operation by helping Biosidus:
- improve the management of the E&S risks related to its activity and
- apply good corporate governance practices.
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News
SignatureProparco supports the growth of Biosidus, an Argentine producer of biosimilar medicines
Published on 23 January 2019 -
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