IFC Invests Up to US$20 M in Grupo Farmanova to Boost Access to Medications in Central America and the Caribbean

In addition to financial investment, IFC will assist GFI in developing a digital transformation strategy that includes improvements in inventory management and business processes.

The International Finance Corporation (IFC), a member of the World Bank Group, is investing up to US$20 million in Grupo Farmanova Intermed (GFI), a leading pharmaceutical company in Central America and the Caribbean. This strategic investment is designed to improve access to high-quality, safe, and effective medications for populations across the region, focusing on enhancing GFI’s operational capacity and infrastructure.

The investment, a loan with the option to convert into a minority equity stake, will enable GFI to consolidate its operations in a state-of-the-art logistics and administrative center, known as the “shared services center”. This new center will optimize the interoperability of GFI’s companies, enhance synergies, and streamline the capacity for import, storage, and both national and regional distribution of pharmaceuticals. The IFC financing will also support GFI in implementing the highest standards of technology, environmental sustainability, and health and safety within its operations.

Strengthening GFI’s Strategic Vision and Growth

Gabriel E. Crespo Balderrama, CEO of GFI, emphasized that the investment aligns with the company’s long-term strategic vision, focused on continuous growth and adapting to the changing healthcare landscape. “This investment agreement strengthens and validates our vision, enabling us to respond to the evolving needs of healthcare professionals, the pharmaceutical industry, and the populations we serve,” Crespo Balderrama stated.

Dr. Rodrigo Salas Sánchez, Founder and Chairman of GFI’s Board of Directors, highlighted the company’s 40-year legacy as a family-owned Costa Rican business, noting that its growth has been built on core principles, values, and the support of stakeholders and strategic partners. "Our success is rooted in the contributions of our employees and partners, which have shaped our progress over the years," said Dr. Salas Sánchez.

Digital Transformation to Enhance Efficiency

In addition to financial investment, IFC will assist GFI in developing a digital transformation strategy that includes improvements in inventory management and business processes. This initiative is part of IFC’s DigiPharma program, which aims to strengthen the efficiency and competitiveness of pharmaceutical companies in the region.

Carmen de Paula, IFC’s Regional Industry Manager for Health, noted that this partnership supports IFC’s mission to foster inclusive growth and competitiveness in Latin America and the Caribbean. "Our investment in GFI aligns with our goals of supporting the region’s pharmaceutical industry, ensuring access to affordable, high-quality medications, and strengthening the industry’s ability to respond to future health emergencies," de Paula added.

Regional Healthcare Challenges and Demand for Medication

Healthcare spending in Latin America and the Caribbean has grown over the last decade, reaching 6.9% of GDP, though it still falls short of the OECD countries' average of 9.2%. The region faces significant healthcare challenges, including a rapidly ageing population, with the number of people over 65 years projected to double by 2050. Additionally, the region’s high obesity rates, around 27% compared to the global average of 13%, are contributing to a rising demand for medications and increased healthcare costs, straining public healthcare systems.

Through this partnership, GFI is poised to enhance its capacity to meet these growing demands, improving the availability and affordability of essential medicines for the region’s population, while helping to alleviate pressure on healthcare systems. This investment will contribute to creating a more robust, sustainable, and responsive healthcare infrastructure in Central America and the Caribbean.

Supporting Growth in the Pharmaceutical Industry

As the demand for healthcare services continues to rise in the region, investments like this are critical for boosting the capacity of pharmaceutical companies to meet the needs of patients and healthcare professionals. The IFC’s support for GFI will not only help improve the company’s operational efficiency but also contribute to the broader goal of increasing access to quality healthcare in Latin America and the Caribbean.