CDC, DPI & EBRD Funds Creation of a New Pharma Player in Africa

November 26, 20200

Biopharmaceutical platform created through funding from the CDC Group, Development Partners International (DPI) and the European Bank for Reconstruction and Development (EBRD), with an initial capital of USD 250 million. The Consortium plans to raise an additional USD 500 million in the future where the funds will be utilized to forge deals for developing a strong pipeline of acquisitions and creation of new distribution channels for expanding access of vital speciality generics across the underserved African market at affordable value.  

As the first step in this direction, the consortium has acquired and combined the Egyptbased Adwia Pharmaceutical with Celon Laboratories, an Indian pharmaceutical company with oncology and critical care speciality portfolio. Founded in 2007, and financially backed by Sequoia in 2010Celon Labs has its footprint in more than 50 countries in the ROW market through exports. Adwia Pharmaceuticals began its operation in 1984 and expanded into formulations development and drug delivery since 1998.  

The current acquisition and merger combines strengths of both the companies to leverage manufacturing and R&D based out in India as well as local manufacturing units in Africafocusing on supply chain management and business development. Along with the existing robust portfolio and pipeline under developmentthis pharma platform has the potential to present eighty-five drugs at economical scale across the continent.  

While there is a large potential for pharmaceutical market in Africait is largely import driven with the local production contributing to around 10 to 30%, indicating a huge capacity to develop home-ground based value chain. African market remains underserved and disruption in supply chain caused during onset of pandemic has pushed public health organisations towards developing self-resilience in this sector. Consortiums by the public and private organizations are a key step in combining strengths and developing mechanisms to expand availability of speciality generics in such unserved markets.  

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