FQM is a fully-owned subsidiary of Laboratórios Roemmers. Privately-owned Roemmers is the largest player in the Argentinian pharmaceutical market and the 5th largest player in LAC (behind global players Sanofi, Bayer, Novartis and Pfizer). Founded in 1921, Roemmers engages in the development, production, and marketing of pharmaceutical products and counts with diversified medical specialties in its products’ portfolio. Roemmers is focused mainly on the production of prescription drugs. Roemmers has a vast knowledge and experience in the sector, having successfully acquired and invested in multiple Latin American countries (Argentina, Brazil, Mexico, Peru, Ecuador, Colombia, Paraguay, Chile and Uruguay).                                                  

 Total cash payment related to the Project is of BRL 400M (c.USD 126M). IFC will provide a USD 31M A Loan for IFC’s own account, and arrange for an additional B/ Parallel loan for up to USD 85M (jointly equivalent to BRL 365M). The A/B Loan will take out a bridge loan financing for the same amount provided by a Brazilian commercial bank through promissory notes. The remaining was contributed by cash existing in the Borrower.                                                  

FQM headquarters are in the city of Rio de Janeiro (Av.  José Silva de Azevedo Neto, 200, Condomínio O2 - Ed. Evolution II - 1º andar, Barra da Tijuca - Rio de Janeiro (RJ)).   Its manufacturing plant is located in the area of Jacaré in northern Rio de Janeiro. Divcom is headquartered in Recife (Av. Antônio de Góes, 275 – 9º. Andar Pina – Recife (PE)). It counts with a manufacturing plant (Vidfarma) in Pombos, located 65km from Recife and distribution centers in Campina Grande (Paraiba, Northeast Brazil). With the integration of both groups, the distribution of all pharmaceutical and dermacosmetics products will be concentrated in the distribution centers in Campina Grande (Paraiba).

This is a category B project according to IFC’s Policy on Environmental and Social Sustainability because a limited number of specific environmental and social (E&S) impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards and guidelines.  

Key E&S issues associated with this project include Farmoquimica’s environmental, occupational health and safety, and HR policies and the manner in which these will be implemented in newly acquired company (Divcom) as well as other third party manufacturers. Farmoquimica and Vidfarma’s manufacturing operations have impacts related to water and energy consumption; management of hazardous materials and wastes; air emissions from boilers and generators; and liquid effluents from cleaning processes. Other E&S issues include emergency preparedness and response; community engagement; worker’s access to grievance mechanism; and road safety provision for manufacturing operations as well as for the sales workforce.