IFC Invests in Grupo Farmanova Intermed to Expand Access to Affordable and Quality Medications in Central America and the Caribbean

Panama City, November 25, 2024 – The International Finance Corporation (IFC), a member of the World Bank Group, is investing up to US$20 million in Grupo Farmanova Intermed (GFI), a leading company in marketing, sales, distribution, and regional logistics, aiming to expand access to high-quality, effective, and safe medications for the populations of Central America and the Caribbean.

The IFC financing—a loan with an option to convert into a minority equity stake in the company—will enable GFI to consolidate all its operations in a state-of-the-art logistics and administrative center ("shared services center"), optimizing interoperability among the Group’s companies, enhancing synergies, and improving its capacity for import, storage, and national and regional distribution. As part of this partnership, IFC will support GFI in establishing the highest standards in technology, environment, health, and safety.

Gabriel E. Crespo Balderrama, CEO of GFI, stated: "This investment agreement strengthens and validates the medium- and long-term strategic vision of each of GFI’s companies, grounded in continuous growth, adapting to the evolving concept of health, healthcare professionals’ expectations, and the population’s needs, as well as the emerging trends and demands of the pharmaceutical industry (human and animal)."

Dr. Rodrigo Salas Sánchez, Founder and Chairman of GFI’s Board of Directors, expressed: "Since the company's inception in 1983, GFI’s growth and diversification as a family-owned and 100% Costa Rican pharmaceutical business have been based on principles and values that, combined with economic and financial development, are essential intangible assets of our heritage. In these first 40 years, the support and dedication of many employees, as well as our stakeholders and strategic and commercial partners, have contributed to building this great company."

Additionally, IFC is assisting GFI in developing a digital transformation strategy focused on inventory management and business process priorities to strengthen the pharmaceutical group’s efficiency and competitiveness. This advisory work is part of IFC’s DigiPharma program.

Carmen de Paula, IFC’s Regional Industry Manager for Health, Education, Tourism, Retail and Properties for Latin America and the Caribbean, noted: "IFC’s investment in GFI, aligned with our goals of promoting inclusion and competitiveness in Latin America and the Caribbean, will support the pharmaceutical industry’s development, providing access to affordable, high-quality medications while enhancing response to future health emergencies."

Healthcare spending in Latin America and the Caribbean has increased over the last decade, reaching 6.9 percent of GDP, although it remains below the 9.2 percent average of OECD countries. As the population over 65 years is expected to double by 2050, the region faces high obesity rates (around 27 percent versus 13 percent globally), intensifying medication demand and increasing costs for citizens, presenting significant challenges for healthcare systems.

About Grupo Farmanova Intermed, S.A. Grupo

Farmanova Intermed, with 41 years in the market, is a regional leader in the pharmaceutical industry with operations in Central America, the Dominican Republic, and the English-speaking Caribbean. Since its founding in 1983, it has evolved into a diversified conglomerate, offering products and services in the pharmaceutical sector and retail for human and animal health. Additionally, it has a strong presence in Costa Rica, reaching 100% of the market and promoting equitable access to healthcare in the region. For more information, visit www.gficr.com.