IFC and Viveo partner to improve medical supply chain capacity in Brazil
IFC is investing in Viveo, one of the largest producers and distributors of medical supplies and medications in Brazil, including to hospitals, to improve the resilience of Brazil’s healthcare supply chain. The loan is part of IFC’s global strategy to help the private sector meet the urgent and immediate needs of developing countries in terms of access to quality healthcare products and services.
IFC’s BRL 200 million (equivalent to $37 million) loan will help Viveo expand the capacity and productivity of its manufacturing facilities, increasing the production capacity of vital medical supplies. The loan will support Viveo’s working capital needs and the purchase of manufacturing machines to insource production stages while using more efficient processes and reducing waste and chemicals.
IFC’s investment will also help Viveo to promote infrastructure improvements at distribution centers and cross-docking facilities by upgrading its transportation fleet and promoting digital transformation. This will allow the company to maintain the scale needed to increase production of materials and to boost its geographic reach within the country, scaling up further to serve more hospitals with key medicines and consumables.
“This agreement is another steppingstone to our growth plan, based on a solid commitment to our shareholders, the market and society, and in line with our mission to simplify the health sector,” said Guilherme Goulart, CFO of Viveo. According to Guilherme, this is also important recognition for the company. “For Viveo, more than the amount itself, this investment represents the result of our solid corporate governance strategy.”
The World Health Organization (WHO) estimates the private sector must invest more than $60 billion to expand manufacturing and delivery capacities for healthcare products to meet the demands of the COVID-19 pandemic, which has demonstrated the importance of having a minimum local manufacturing scale for life sciences production to increase health resilience and future pandemic preparedness.
“Recent supply chain disruptions and supply shortfalls have highlighted the importance of increasing local capacity of manufacturing and distributing supplies and medications to improve the resilience of the health sector and provide quality, affordable products and services to the Brazilian population,” said Carlos Leiria Pinto, IFC Brazil Country Manager. “IFC’s investment will not only support Viveo’s production expansion, but also help the company strengthen its presence in the global supply chains, allowing for improved distribution of materials and pharmaceuticals throughout Brazil,” he added.
This investment, part of IFC’s Global Health Platform (GHP), reflects the organization’s systematic approach to the pharmaceutical sector in the Latin America and Caribbean region. A central pillar of the broader World Bank Group’s response to COVID-19, GHP helps mobilize private investment to close the healthcare supply gaps and support developing countries to become more resilient to future pandemics or other critical health needs.
IFC has been investing in Brazil’s private sector since 1957 to address the country’s most critical development challenges, including those of urbanization, social inclusion, competitiveness and productivity, and management of natural resources.
About Viveo
Viveo is an ecosystem that brings together specialist companies that operate from the manufacture of products and distribution of materials and medicines to inventory management and services for their customers and end consumers. Viveo has the purpose of taking care of each life and the mission of simplifying the health sector and democratizing access through support and maintenance in each link of this chain. It comprises the following companies: Mafra Hospitalar, Profarma Specialty, Pointmed, Tecno4, MedCare, BEMK, Tecnocold Vacinas, Prevena, Cremer, Flexicotton, FW, Daviso, Heathlog, Cirúrgica Mafra, Boxifarma, Far.me, Azimute Med, Famap, Life, Nutrifica and Pro Infusion and owner of the brands Embramed, Cremer, Topz, Bellacotton, Salvelox, Piquitucho and FeelClean.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
