Fosun Pharma GHP

active

The proposed investment is an A loan of US$200 million to Shanghai Fosun Pharmaceutical (Group) Co. Ltd., (“Fosun Pharma” or the “company”), an existing IFC client since 2006 and a leading healthcare company in China with a presence in the entire healthcare value chain from manufacturing to distribution and provision of healthcare products and services, with manufacturing facilities throughout different provinces in China. The proposed IFC financing is to support the distribution and manufacturing of the COVID-19 vaccine developed by BioNTech (Germany), and to support production of COVID-19 test kits in China (“the project”). IFC provided a corporate loan to Fosun Pharma (committed in 2006, IFC project #24812) and a follow-up financing package including equity and loan in 2011 (#38272). The Environmental and Social Review Summaries of the previous two investments are available at the following links.  -          Fosun Pharma (Project#24812, disclosed in September 2006): https://disclosures.ifc.org/project-detail/ESRS/24812/fosun-pharma-          Fosun Pharma 2 (Project#31231, disclosed in May 2011): https://disclosures.ifc.org/project-detail/ESRS/31231/fosun-pharma-2 IFC’s review finds that overall, E&S action plan obligations from previous projects have been materially fulfilled by the company and the company’s environmental and social (E&S) performance is satisfactory. The proposed project (#45021) will comprise two parts: Production of nucleic acid based COVID-19 test kits at one or more Fosun Pharma manufacturing facilities in China; and Distribution and manufacturing of COVID-19 vaccines based on a licensing agreement with BioNTech. This will be done in 3 stages as follows:(i)           The company will distribute finished vaccine products in China through a network of provincial and local level cold chain warehousing and distribution facilities to vaccination points. These facilities will be selected to ensure that stringent COVID-19 vaccine temperature and storage requirements, and other required storage and transport conditions are met at all times. The company will use its own provincial and/or local cold chain facilities at certain locations, and in other locations lease facilities meeting its requirements from established medical logistics service provider companies to store and distribute the vaccine product.(ii)        During the second stage, the company will refine bulk vaccine materials from BioNTech into the final vaccine product at one or several existing Fosun Pharma manufacturing facility locations in China, then distribute these to vaccination points;(iii)      The company will form a joint venture with BioNTech to manufacture COVID-19 bulk materials and refine them into vaccine finished products in China and will distribute these to vaccination points. The project’s implementation timeline and precise locations were not known at the time of appraisal.