The International Finance Corporation, the private sector financing arm of the World Bank Group, is providing a $3.5 million loan to Biocon, a leading pharmaceutical warehousing company in Ukraine.

Established in 1994, Biocon has grown into a premier provider of services relating to customs clearance, transportation, relabeling, and repackaging of imported drugs. Biocon will use IFC's financing to refurbish two recently acquired warehouses, build a new storage facility, and upgrade its IT systems. Among Biocon's key and long-term clients are many of the large multinational pharmaceutical manufacturers.

Guy Ellena, IFC's director for Health and Education, said, "As a market leader, Biocon sets the standards for the rest of the industry. By supporting the company's expansion, IFC expects to promote a greater role for the private sector in providing high-quality health care products."

"This is IFC's first investment in a third-party logistics service company in Ukraine," noted Elena Voloshina, head of IFC's operations in Ukraine. "IFC's participation will help this locally owned and managed pharmaceutical distributor expand and improve the efficiency of its operations," she added.

"IFC's investment offers us access to long-term financing that is otherwise unavailable in Ukraine. Success of the project will demonstrate to other potential investors in Ukraine that pharmaceutical distribution projects can be economically viable and have developmental value," commented Alexander Yavorsky, president of Biocon.

"IFC's loan will help us improve the efficiency of the pharmaceutical distribution network and enhance the quality of services and care provided to patients," he added.