The Asian Development Bank (ADB) on Wednesday signed an US$8 million loan deal with Imexpharm Corporation to help the company sustain its production of generic medicines despite global supply disruptions caused by the COVID-19 pandemic.
The financing will support the company’s working capital needs to ensure an ample supply of ingredients for essential medicine production.
“Asia has witnessed disruptions across the pharmaceutical supply chain in 2020, including a shortage of active pharmaceutical ingredients,” said Head of Health and Education Investments at ADB’s Private Sector Operations Department Aniruddha Patil.
“This project demonstrates ADB’s continued efforts to enhance health outcomes in Việt Nam by encouraging the development and use of local generic medicines.”
“We are pleased to be working with ADB,” said Imexpharm’s Chairman Nguyễn Quốc Định. “The financing will improve our liquidity situation and ensure a consistent supply of affordable generic drugs to hospitals and pharmacies across Việt Nam.”
This debt financing is part of ADB’s $20 billion assistance announced on April 13 to help its developing members manage the pandemic.
Imexpharm was established in 1977 and incorporated in 1983 as the Đồng Tháp Pharmaceutical Union. The firm was transformed from a State-owned enterprise into a joint-stock company and renamed Imexpharm Corporation, and its shares were listed on the Hồ Chí Minh Stock Exchange on December 4, 2006. As of September 30 this year, Imexpharm had 1,252 employees, total assets of VNĐ2.07 trillion and six pharmaceutical manufacturing facilities.