The Asian Development Bank (ADB) has agreed to provide a loan of up to €30 million ($37 million) to Jointown Pharmaceutical Group for expanding pharmaceutical distribution facilities in the China (PRC).
The loan will be used towards the construction and expansion of Jointown Pharmaceutical’s pharma distribution facilities in Haikou, Tangshan, and Nanjing.
The three facilities will have cold chain warehouses for storing vaccines and other temperature-sensitive pharmaceutical products.
Suzanne Gaboury – Director General of ADB Private Sector Operations Department said: “This financing will help Jointown to expand its distribution capacity of medical supplies and medicines to hospitals and retail pharmacy outlets in underserved areas of the PRC.
“It will contribute to the PRC’s pharmaceutical surge capacity to further strengthen resilience to a future potential pandemic.”
Deutsche Investitions und Entwicklungsgesellschaft (DEG), a German development finance institution will cofinance Jointown Pharmaceutical’s expansion with an additional amount of €30 million.
Liu Zhaonian – Jointown Pharmaceutical Vice Chairman said: “We are very grateful to ADB and DEG for supporting Jointown’s effort to strengthen our distribution network.
“With the loan facilities, we will be able to reach out to the broader population, including in the second and third-tier cities and rural areas with essential medicines and medical supplies.”
In early 2020, the Hubei provincial government had designated Jointown Pharmaceutical for procurement and distribution of drugs and medical supplies during the Covid-19 outbreak.
Last February, ADB granted an emergency loan of CNY130 million ($18.6 million) to Jointown Pharmaceutical for helping it in its supply of essential medicines and personal protective equipment.