Farmoquimica

active

Farmoquimica or “the company” ( www.fqm.com.br ), is a Brazilian pharmaceutical company selling branded prescription drugs; with a product line that includes more than 50 branded drugs among 9 specialties. The company is fully owned by Laboratorios Roemmers S.A., Argentina's largest pharmaceutical company and #5 player in LAC.    The proposed IFC investment includes a loan for a total of up to USD 116 million; including US$31 million from its own account and the balance from syndication. The proposed investment will be used to support the business combination between FQM and Divcom and finance the acquisition of brands commercialized by Divcom. Divcom Pharma ( www1.divcom.com.br/divc/home/index.html ) is a medium-sized manufacturer and distributor of Over the Counter (OTC) medicines in Brazil's Northeast (the “project”).    Farmoquimica has a manufacturing plant for pharmaceuticals in Rio de Janeiro, in the neighborhood of Jacare; Divcom has a plant for manufacturing OTC products (Vidfarma) in Pombos, Pernambuco; both in Brazil. The Farmoquimica plant manufactures and packages solid products (including hormonal products but no antibiotics) and liquid products (both sterile and non-sterile products). Operations such as formulation, dispensing, compounding, mixing, granulation, coating and filling are all performed on site. In addition, Farmoquimica has two Distribution Centers (DC) which are leased and are located in Rio de Janeiro and Sao Paulo. Divcom has a DC in Campina Grande, Paraiba, and its sales and administrative operations are based in Recife, together with other supporting operations such as mass-media advertising. Part of the production (about 20%) for both Farmoquimica and Divcom is outsourced to other manufacturing companies