KELIX bio: a pan-African platform to improve access to life-saving drugs in Africa

African Development Partners 3 (ADP 3) is the third generalist pan-African investment fund raised by the manager Development Partners International (DPI). Founded in 2008 by Miles Morland and Runa Alam, DPI has invested its first two vehicles with strong performance: ADP 1 (EUR 271m, i.e. around USD 325m raised in 2008) and ADP 2 (USD 725m raised in 2013). The investment strategy of ADP3 is in line with the first two funds: it will aim to support between 8 and 14 profitable and growing African midcap companies via equity investments ranging between USD 40m and USD 120m, with a controlling stake or strong influence. These investments result in a significant portion of capital injected into the companies to finance investments, support organic growth or structure external growth operations. They also bring major value added to the institutionalization, development and internationalization of companies. The focus sectors will be exposed to the emergence of the middle class in Africa, a strong growth driver in the coming years. They include telecommunications, financial services, education, health and consumer goods.

The project involves an equity investment in KELIX bio, a pan-African multi-country platform in the production and distribution sector for generics and biosimilars. 

The project is led by DPI which is investing USD 120m via the ADP3 fund, joined by CDC (USD 150m), EBRD (USD 100m), Proparco (USD 20m), FMO (USD 25m) and DEG (USD 20m). 

With a strategy based on acquisitions and sustained investments, the platform is today active in Morocco via PHI, Egypt via Adwia and Sigmatec, India with Celon Labs and Malta via a production unit dedicated to export. The development strategy aims to develop production capacity, through a sustained investment program in its own facilities, and pool the product portfolios and best practices of the various companies. It will also further develop the platform through acquisitions to increase the geographical diversification (in Sub-Saharan Africa in particular) and group products (in the priority areas of oncology, respiratory and cardiac services).

The main expected impacts of this project are: 

•  Contribution to safeguarding and creating 8,400 jobs over the next 5 years in the fund’s investee companies;
•  New or improved access to pharmaceutical products for 194,000 people;
• The development of local expertise in high-value added pharmaceutical production (such as biosimilars).  

The project should contribute to SDG 3 “Good health and well-being”) and SDG 8 (“Decent work and economic growth”).