MS Pharma Equity

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A USD 50 million equity investment in MS Pharma Partners Holding W.L.L., a subsidiary of MS Pharma Ventures Holdings W.L.L., a manufacturer of generic pharmaceuticals operating in the MENA region. The investment will support MS Pharma's expansion in the region, including the acquisition of a brownfield pharmaceutical plant in Turkey, purchase of files for the development and commercialisation of new generic pharmaceutical products, and working capital to support its operations in Jordan. The investment will enable MS Pharma to increase its capacity, diversify its revenues and accelerate the entry into new markets. The project's transition impact will stem from the following: (i) Setting standards of corporate governance and business conduct mainly through bringing the acquired plant closer to the EU's good manufacturing practices (GMP). (ii) Demonstration of new types of activities through supporting the regional expansion of one of the key players in the Jordanian pharmaceutical sector, which is expected to contribute to a further development of the emerging regional pharmaceutical hub in Jordan. MS PHARMA PARTNERS HOLDING W.L.L. MS Pharma Partners Holding W.L.L., a limited liability company incorporated in Bahrain as a ubsidiary of MS Pharma Ventures Holdings W.L.L. USD 50,000,000.00 USD 50,000,000.00 Category B (2014). The equity investment in MS Pharma Partners Holding W.L.L with the use of proceeds for acquisition of a generics manufacturing plant in Turkey and working capital needs existing pharmaceutical plants in Jordan is associated with site-specific environmental and social impacts. The Environmental and Social Due Diligence (ESDD) was carried out via review of the environmental and social questionnaires, support materials, audit results of the target plant in Turkey, and annual environmental and social reports for the previous project with MS Pharma in Jordan, including the review of how the existing Environmental and Social Action Plan (ESAP) is being implemented. The original ESAP has been updated to include facilities of the MS Pharma Partners Holding W.L.L and reflect additional requirements for the project, and has been agreed with the company. The ESDD didn't identify any non-compliances with EBRD performance requirements for Jordan plants. Amman-based United Pharmaceuticals Manufacturing (UPM) and MS Pharma Injectables do not produce Active Pharmaceutical Ingredients (API) and focus on general formulation processes that are associated with relatively less significant environmental and social impacts due to the nature of the industrial processes involving mainly mixing, drying and moulding of tablets and preparation of non-sterile solutions. The group complies with ISO 9001 quality standards and its UPM plant complies with Jordanian GMP and is certified against EU GMPs, ensuring product safety and adequate pharmacovigilance practices. The company is committed to seeking GMP approval for its new Injectable plant in Jordan and MS Pharma Partners Holding W.L.L facilities. This commitment is required under the updated ESAP. The construction of the flammable materials warehouse at the UPM site to supply raw materials to the Injectable plant is expected to be mainly associated with environmental impacts such as noise, dust, waste disposal, traffic safety issues and nuisances to the public. The updated ESAP also includes implementation of environment, health and safety management systems, air emissions monitoring and ensuring concentrations for dust at 5mg/m3 and volatile organic compounds (VOC) at 10 mg/m3 in line with good international industrial practice, solvent reduction programs, update of human resources policies, improvements in occupational health and safety practices and fire safety measures. To minimize social impacts on transient Roma/Dom settlements around Jordanian plants, the ESAP requires preparation of a traffic management plan and a security staff code of conduct. The company will continue to provide the Bank with annual environmental and social reports, including on status of the updated ESAP implementation. A monitoring site visit to MS Pharma Partners Holding W.L.L facilities will be carried out in due course. None. Yazan Abu Abboud yazan.abu-abboud@mspharma.com +962 6 5827999 www.mspharma.com P.O Box 142904 Amman 11844 Jordan