Investment Plan for Europe: EIB grants financing to Biofrontera
The European Investment Bank (EIB) will grant financing of up to EUR 20 million to the German biopharmaceutical company Biofrontera AG. The loan agreement has been signed in Luxemburg. EUR 10m will be available for disbursement from signature, and further installments will be disbursed based on pre-defined commercial and regulatory milestones. EIB’s transaction with Biofrontera was made possible by the support of the “European Fund for Strategic Investments” (EFSI). EFSI is the central pillar of the “Investment Plan for Europe”, in which EIB Group and the European Commission are strategic partners.
The Leverkusen, Germany based Biofrontera focuses on developing and commercialising innovative dermatological therapies, including therapies for the treatment of skin cancers. The company’s lead product Ameluz® is a prescription drug approved in the EU and the US for the treatment of certain forms of non-melanoma skin cancer. Ameluz® has been approved in the EU since 2011 and in the US since May 2016. It was launched in the US in October 2016.
Ambroise Fayolle, Vice President of the EIB and responsible for Germany, commented: “We are proud to be able to support Biofrontera in its innovative and competitive strategy. Innovation is a key element for Europe in a global competition, to help secure competitiveness and jobs in the future and achieve sustainable growth.” And he added: “Biofrontera is expected to embark on a period of significant growth. Standing by European companies at an early stage and providing long term, stable capital to support the R&D activities of these businesses is a top priority for the EU-Bank.”
European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: "The European Fund for Strategic Investments is working to boost investment and innovation across Europe. I welcome today's agreement which will assist Biofrontera in taking their next steps, allowing them to access the finance they need to innovate, expand their activities and hire new employees."
Thomas Schaffer, Chief Financial Officer of Biofrontera, commented: “We are honored that the EIB has selected Biofrontera to be part of their Investment Plan for Europe. The loan will greatly enhance our financial capabilities and will be an integral pillar for our growth ambitions in Europe and in the USA to become a leading dermatology company.”