COVID loan

IFC grants Glenmark USD 40 million COVID loan

Glenmark Pharma becomes first domestic drugmaker to get a USD 40 million COVID loans from IFC :

Glenmark Pharma has secured a USD[1] 40 million ( about Rs. 290 crores ) credit – line from IFC’s[2] USD 8 billion fast–track COVID – 19 facility. This has made the drug firm the first domestic one to get a loan from IFC. The announcement was made by IFC on 23 March 2021.

This loan to Glenmark is given to increase affordable, quality medicines in India and other countries. This especially comprises the medicines used for the treatment of pandemics. [2]

The World Bank Group lender claimed that this loan is under its USD 8 billion fast–track COVID – 19 facility. The lender provided this to help the drugmaker boost its generic drug production capacity. It was particularly aimed at enhancing the production of general and respiratory medicines.

Details- IFC COVID loan

IFC had begun its partnership with Glenmark in June 2016 to expand and grow the R&D[3] capacities of the company. At that time, IFC had invested around USD 75 million in Glenmark’s foreign currency convertible bonds. Speaking about the recent development, Glenmark has stated this will improve the availability of affordable, quality medicines to the needy.

Glenmark has been actively producing generic drugs and active pharmaceutical ingredients. These are generally utilized in oncology, cardiology, dermatology, and respiratory illnesses.

One of IFC’s top priorities is to support the nation’s efforts to close development gaps. It believes that supporting Glenmark will lead to a competitive market, create jobs, and drive growth post-pandemic.

IFC’s credit–line to BioE

In December 2020, IFC had extended a credit – line of USD 30 million to Biological E ( BioE ), a vaccine maker based in Hyderabad. This was to help expand the access to low–cost vaccines for children in developing countries. IFC also gave it to increase the production of the COVID -19 vaccine when developed. This loan was, however, not given from IFC’s COVID credit line.

BioE has been getting loans from IFC since 2017. This company primarily supplies its vaccines to developing countries through UNICEF[4] and GAVI[5], the Vaccine Alliance. The efforts of this vaccine maker have immunized over 2 billion children across the globe.

The annual vaccine production of BioE crosses 50 million pediatric doses. These vaccines are supplied to more than 130 countries every year.

IFC is the largest global development institution that focuses on the private sector in emerging markets. It has been operating in more than 100 countries. In the fiscal year 2020, IFC invested around USD 22 billion in private institutions and financial institutions in developing countries. IFC did this to leverage the private sector’s power to end extreme poverty and boost shared prosperity.

Glenmark has been operating in more than 50 countries in generics, OTC[6], and specialty businesses. Its key focus areas are respiratory, dermatology, and oncology.

Abbreviations

  • United States Dollar
  • International Finance Corporation
  • Research and Development
  • United Nations Children’s Fund
  • Global Alliance for Vaccines and Immunizations

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