Washington, D.C. June 20, 2005 —“
The International Finance Corporation will stay committed to supporting India’s growing biotech industry in projects where IFC can demonstrate a strong role,” said Mr. Assaad Jabre, IFC Acting EVP. “IFC sees its role “in promoting innovation and growth in mid- to small-sized Indian companies, supporting their R&D investments, and expansion of their markets and manufacturing bases to other developing and regulated countries.” Mr. Jabre was addressing a biotech delegation from the Federation of Indian Chambers of Commerce and Industry at a dinner in honor of Hon. Mr. Kapil Sibal, Minister of State for Science, Technology, & Ocean Development at IFC headquarters in Washington, D.C., June 14. IFC is the private sector arm of the World Bank Group.
Mr. Jabre reiterated IFC’s appreciation of the work done by the Hon. Minister and FICCI to promote Indian science and technology-led industries in India. He added that IFC is a relatively new investor in the life sciences sector and to date had invested only $110 million across 14 projects globally, of which a significant portion ($43 million) is in four projects in India—the centerpiece of IFC’s global biotech strategy.
IFC recently invested $4 million in the APIDC Biotech Venture Fund, a $35 million private equity fund formed to make investments in start-up and early stage life sciences companies in India. IFC has also made a $15 million equity investment in Dabur Pharma, a medium-sized listed pharma and biotech company.
Mr. Sibal said he would like to find ways to build public private partnerships with IFC to promote development of the biotech sector in India.
India is on the threshold of a biotech revolution, following closely on its success in the information technology sector. The Indian biotech industry is estimated to have a market size of more than $700 in 2003-04 and is expected to generate $5 billion in revenues and 1 million jobs over the next five years.
Mr. Vipul Prakash, IFC Regional Manager for South Asia, pointed out that the biotech sector can play a critical role in alleviating poverty in India because it provides more cost effective and efficient medicine and significant improvements in agricultural and industrial productivity. He added that the availability, cost, and quality of health enhancing drugs are essential in achieving the Millennium Development Goals to reduce child and maternal mortality and halt the spread of AIDS, malaria, and tuberculosis.
The mission of IFC (
www.ifc.org)
is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
