Romania: First InvestEU agreement provides €25 million in EIB financing to boost security of supply for medicines

EIB loan is expected to enhance local production of medicines Financing agreement promotes innovation in a cohesion region, highlighting EIB’s commitment to equitable growth This agreement is supported by the InvestEU programme, which aims to trigger more than €372 billion in additional investment over the period 2021-2027. The European Investment Bank (EIB) and Antibiotice, Romania’s leading pharmaceutical manufacturer, have joined forces to boost the production of medicines in Romania. The €25 million loan agreement will help finance the construction of a state-of-the-art production, packaging, and storage unit at Antibiotice's Iasi site, facilitating development of new production lines, digitalization, research and development capacities. The EIB loan represents a quarter of the total investment cost of €95.4 million.   This agreement was made possible with the support of the InvestEU programme, which aims to trigger more than €372 billion in additional investment over the period 2021-27.   This partnership marks a significant milestone for Romania's healthcare sector, being the first InvestEU operation approved in Romania, following the Investment Committee decision of October. It reinforces the objectives of the EU Pharmaceutical Strategy and the Commission Communication on addressing medicine shortages in the EU, which aim to address medicine shortages and strengthen security of supply in the EU.   The project supports the creation of advanced pharmaceutical manufacturing capacity in a cohesion region in Romania. By decreasing reliance on imports and promoting healthcare accessibility across the European Union, the initiative enhances the competitiveness and resilience of the European pharmaceutical industry and underlines the pivotal role of advanced manufacturing capacity in supporting the EU’s strategic autonomy, particularly in healthcare.   Supporting the company's research and development team to create new medicines and production processes will lead to the hiring of approximately 100 full-time employees for research and manufacturing over a period of four years. Antibiotice SA works closely with universities and research institutes, further supporting the job market for highly skilled individuals.   EIB Vice-President Teresa Czerwi?ska said: “This collaboration demonstrates our commitment to fostering innovation, creating jobs, and advancing healthcare solutions in Romania. The EIB's support empowers Antibiotice SA to expand its research and production capabilities, contributing to the well-being of the European population and increasing R&D in cohesion regions. I am glad to salute this first InvestEU project in Romania.”   European Commissioner for Economy Paolo Gentiloni said: “The COVID-19 pandemic underlined the importance of strengthening the capacity of Europe’s medical manufacturing industrial base. I am delighted that InvestEU is playing a crucial role in providing the financing needed for Europe’s healthcare industry to remain competitive and innovative, whilst addressing the needs of patients and those of our health systems. This project in Romania will boost antibiotics production as well as benefitting the local economy and creating high-quality jobs.”   “This partnership with the European Investment Bank consolidates ‘The Future Together 2030’, our business plan and the company’s capacity to respond to the needs and requirements of the European pharmaceutical market. We are investing in research, technological transfer and new production sites to generate added value in the pharmaceutical industry and strengthen the company's economic and financial indicators by 2030.”, said Ioan Nani, CEO of Antibiotice SA.   The partnership between the EIB and Antibiotice SA is a step towards building a self-sufficient and competitive pharmaceutical industry in Romania. By investing in local talent, promoting innovation, and enhancing healthcare accessibility, this initiative lays the foundation for a healthier future for both Romania and the broader European Union.   https://health.ec.europa.eu/system/files/2021-02/pharma-strategy_report_en_0.pdf   Background information   The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. After the outbreak of COVID-19 in 2020, the EU bank significantly increased its support for healthcare in Romania by providing €1.1 billion to help finance three regional hospitals and renovate 26 smaller hospitals and medical facilities across the country. The EIB has worked in Romania since the early 1990s, improving regional cohesion, infrastructure and healthcare services, and supporting small and medium-sized enterprises through 180 projects worth €17.78 billion.   About InvestEU   The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for EU policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budgetary guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.   About Antibiotice SA   Established in 1955, Antibiotice SA has a nearly 70-year tradition in the manufacturing of finished pharmaceutical products and active pharmaceutical ingredients (API). At present, the company is the worldwide leader in the manufacturing of Nystatin API and the leading Romanian manufacturer of generic drugs, having solid business partnerships developed with various entities internationally.   Expansion on the international markets was promoted by substantial investments and a firm commitment to comply with international quality standards, such as the EU-GMP, CoS and US-FDA. The company has developed strong global business partnerships and remains focused on its continual growth via the new business plan ‘The Future Together’ designed to stimulate the investments supported by the current agreement. Moreover, Antibiotice SA’s investment plan is in line with the Regional Smart Specialisation Strategy (RIS 3 North-East), and contributes significantly to the development of the north-east region of Romania. The multidisciplinary team of specialists is constantly focused on high performance through various training programmes run under Academia a+, in cooperation with relevant universities as well as modern motivational and organisational culture systems. (Source: https://www.eib.org)