Company name

Farmalatam Holding Inc.

Project number

13020-01

Category B projects have potential environmental and/or social impacts and risks that are less adverse than those of a Category A and which are generally limited to the project site, largely reversible and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.

E&S category
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B

Country

Regional

Sector

Social Infrastructure

Status

In implementation

Disclosed date

07/08/2020

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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10/06/2020

Approval date

10/20/2020

Signed date

12/16/2020

Sponsoring entity

N/A

Team leader

Vera Fabbri, Pablo Marcelo

Investment type

Financing requested

N/A

Syndicated amount

N/A

Financing amount

USD $ 8,000,000

Currency

USD

Project scope and objective

IDB Invest is considering a capital investment of up to US$8 million in Farmalatam Holding Inc. ("Farmalatam” or the "Company"). Farmalatam[1] is a leading home healthcare technology platform in Latin America that provides comprehensive healthcare solutions to patients. Farmalatam is a 100% digital pharmacy with no physical stores, which distributes pharmaceutical products. In addition, it provides home health and telemedicine services through its digital platform “CARE24”. Since its incorporation in 2014, the Company has developed a user and partnership base, demonstrating its readiness to move on to the next phase and achieve greater scales. Farmalatam currently operates in Colombia, Mexico, and Peru.



The capital round will allow Farmalatam to support its growth plan as follows: (i) finance current operations to support expected growth through investments in marketing, information technology, and human resources, among others; (ii) finance strategic acquisitions of related businesses in Latin America; and (iii) promote its regional expansion.



This investment will require the implementation of reforms in order to strengthen its policies and controls in its operation - particularly to ensure equitable prices in the context of the health crisis and thereafter. Furthermore, Farmalatam is committed to implementing improvements in corporate governance.



The objectives of investing in Farmalatam are (i) to help support the growth of the digital economy and stimulate productivity in the pharmaceutical sector through a disruptive, technology-enabled business model with sizable addressable markets; (ii) to contribute to reducing the cost of medicine and expand access to cheaper costs in target markets; and (iii) to support access to medical services and home treatments.



 



[1] www.farmalisto.com 




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Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. Any gaps with respect to the IDB Invest Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) provided below.

ENVIRONMENTAL AND SOCIAL REVIEW

44.1 Kb

ESRS FARMALISTO DISCLOSURE EN 20200807

276.5 Kb

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Contact information

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Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

José Joaquín Mora Hernández

POSITION

CEO

PHONE NUMBER

(57 1) 4926360

EMAIL

jose.mora@farmalisto.com

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices