FMO joins DPI in $750m pan-African buy-and-build pharmaceutical platform KELIX bio
18-10-2022 13:03:00 | by: Pie Kamau | hits: 2867 | Tags:

Development Partners International (DPI), an investment firm focused on Africa, has welcomed Proparco and DEG, France and Germany’s development finance institutions, and FMO, the Dutch development bank, as new partners in the KELIX bio platform. This investment is part of the up to $200 million funding round into KELIX bio.

Several US private sector institutional investors will also be joining the platform demonstrating the global commitment to advancing Africa’s pharmaceutical sector. The addition of these new investors brings additional sector and emerging market expertise to support the acceleration of KELIX bio’s expansion.

KELIX bio is a $750 million pan-African buy-and-build platform, established by founding investors DPI, British International Investment (BII) and the European Bank for Reconstruction and Development (EBRD). The platform was set up to address the increasing demand for affordable specialty drugs that are accessible to underserved communities across Africa. Led by co-founders CEO Hocine Sidi-Said and Chief Strategy Officer Alhadi Alwazir, KELIX bio is working to execute its ambitious impact-focused strategy, aimed at improving the quality of life of individuals across the continent.

Damien Braud, Proparco’s Head of Private Equity for Africa and the Middle East: ''We are thrilled about the investment in KELIX bio. DPI and Hocine Sidi-Said’s team has built an impressive pharmaceutical platform presenting all the qualities and features for a highly successful and impactful business, notably a specialization in generics and bio-similars, with no comparable in Africa, and cross-continent geographical reach. Healthcare is a core sector for Proparco and distributing quality, affordable drugs throughout the African continent remains a highly critical issue. The area where KELIX bio operates is still largely underserved and we are excited about the growth potential that this represents.''

Yves Ehlert, Vice President Equity Africa, DEG: ''DEG is happy to be part of the funding round into KELIX bio. Access to affordable specialty drugs is a huge gap in Africa and addressing this demand can bring large scale impact in the sector. In keeping with its mandate as a development finance provider, DEG is committed to improving the provision of medical care in partner countries. We are delighted to partner with Development Partners International with whom we have a long standing and successful partnership in this transaction.''

KELIX bio has seen significant growth since its creation, with 4 acquisitions already completed through the platform and a strong pipeline of new opportunities as it looks to accelerate the delivery of critical drugs across the continent. To support this continued growth, an additional $300 million of investment into the platform is planned over the next two years, which will also enable it to establish new cross-market distribution channels and support research and development of new drugs.

Alison Klein, Manager, Private Equity, FMO: ''FMO is thrilled to be a co-investment partner in KELIX bio together with DPI. KELIX bio’s impact-driven strategy directly underscores one of FMO’s core mandates of reducing inequalities, as there is considerable demand across the African continent for speciality drugs, particularly within underserved communities. By both increasing access to life-saving medications while lowering the costs of these products, FMO can contribute to improved health outcomes from non-communicable diseases, in line with UN SDG 3.''

Sofiane Lahmar, Partner, DPI: ''Improving delivery of speciality drugs in Africa is critical, with communities still lacking access to affordable life-saving treatments. KELIX bio’s mission to transform Africa’s pharmaceutical sector will improve the quality of life for millions across the continent. The commitment from well-respected investors such as Proparco, DEG, FMO, as well as US institutional investors, reaffirms confidence in KELIX bio’s investment thesis and in Hocine Sidi-Said and the KELIX bio management team to achieve these ambitions and we look forward to working together to accelerate the platform’s growth.''