Pliva

completed

The project supports the growth and strategic development of Pliva, the leading pharmaceutical company in Central and Eastern Europe, and the only one that has produced a blockbuster drug through its original research. Pliva’s strategy for the future is to continue to build on its existing R&D expertise by focusing on both original research, and generic drug development. IFC investment will support the construction and outfitting of a new 25,000 square meter Research and Development facility. Currently, the company''s R&D is conducted in three different locations and suffers from space limitations. Consolidation of R&D activities in one state of the art facility will increase efficiency and multi-disciplinary interaction. The layout and infrastructure of the new facility will ensure that all Pliva''s R&D activities will be performed in compliance with international quality requirements, or "Good Laboratory Practice" (GLP). About 55% of the facility will be dedicated to new product development and 45% of the facility will be dedicated to original research. The department for new product registration will also be located in the new facility. The investment will also result in a significant improvement in the working conditions of the scientists by increasing laboratory space per scientist to international standards. Pliva''s new R&D facility will employ about 500 people. The project is expected to have a broader positive impact on Croatian society through providing local scientists employment opportunities in their own country, helping to curb the high level of "brain drain" to employment opportunities outside of Croatia. Despite Pliva''s impressive financial performance, to date, the perceived country and macroeconomic risks have made it difficult for the Company to secure adequate long term financing at a reasonable cost. The World Bank Group''s priorities in Croatia have been to encourage private sector development and to support this process through rehabilitating the country''s industrial asset base and environmental standards. Finally, this project is compatible with IFC''s mission of attracting foreign investment and assisting through financing and advisory work with the restructuring and privatisation of formerly socially-owned enterprises.