IDB Invest provided a USD14m loan to Costa Rica’s pharmaceutical company Calox. The project’s objective are the acquisition of the company’s current manufacturing plant to make improvements in infrastructure and energy efficiency and the provision of medium-term financing for working capital.
(IDB Invest) IDB Invest, a member of the IDB Group, has agreed a $14 million loan with Calox de Costa Rica S.A. (Calox). The deal, with a maturity of up to eight years, will allow Calox to secure substantial improvements in production capacities and seek international certifications that validate the quality of its products, allowing access to new markets and the possibility of expanding its own manufacturing via import substitution, as well as diversifying its product portfolio.
The project has two main objectives; first, it seeks the acquisition of the company’s current manufacturing plant to make improvements in infrastructure and energy efficiency in order to be certified and expand its production capacity in the medium term. The second objective is the provision of medium-term financing for working capital. This will allow Calox to promote the expansion of medicines with its own brand, expand to the South American market, meet additional needs as a result of the crisis caused by the pandemic generated by COVID-19 and continue its Research and Development (R&D) of new products. .
This operation potentially contributes to four United Nations Sustainable Development Goals (SDGs): Decent work and economic growth (SDG 8), Industry, innovation and infrastructure (SDG 9), Responsible consumption and production (SDG 12) and Revitalize the global partnership for sustainable development (SDG 17).
On the other hand, IDB Invest will also provide Technical Advisory services to Calox to develop a sustainability strategy to better identify, manage and measure its environmental, social and gender (ESG) practices throughout its operations. To achieve this, a materiality analysis will be carried out that will result in a sustainability strategy with clear metrics and guidelines to promote the integration of small and medium-sized companies with sustainable practices as suppliers and distributors. A comprehensive Corporate Governance program will also be implemented.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Calox de Costa Rica S.A. is a pharmaceutical company from Costa Rica that manufactures generic drugs with a strong presence mainly in Central America. It was founded in 1935 when it began operations as a Biogen Laboratory in Venezuela. Later it secured an alliance in the 1960s with McKesson and changed its name to Calox in the 1970s. In the 1990s, Calox opened operations in Costa Rica, acquiring Sukia Laboratories and starting its business in C.A. Since its inception, it has been dedicated to the production, distribution and sale of mostly generic products. Calox has 31 therapeutic classes with a total of 88 molecules converted in 175 presentations. Calox’s business lines are: human health with the main therapeutic classes, veterinary medicine, and own-brand medicines and natural products.