Belgium: European Union provides Biocartis with up to EUR 24m debt financing facility for infectious disease projects
- Mar 1, 2018
Biocartis Group NV (the ‘Company’ or ‘Biocartis’), an innovative molecular diagnostics company (Euronext Brussels: BCART), today announces that it has obtained an up to EUR 24m debt financing facility from the EIB. The financing facility is supported by InnovFin – EU Finance for Innovators’ Infectious Diseases Finance Facility, with the financial backing of the European Union under its research and innovation programme Horizon 2020. It can be used to part-finance up to 50% of further investments in infectious diseases diagnostics solutions on Biocartis’ Idylla™ platform.
Biocartis Group NV (the ‘Company’ or ‘Biocartis’), an innovative molecular diagnostics company (Euronext Brussels: BCART), today announces that it has obtained an up to EUR 24m debt financing facility from the European Investment Bank. The financing facility is supported by InnovFin – EU Finance for Innovators’ Infectious Diseases Finance Facility, with the financial backing of the European Union under its research and innovation programme Horizon 2020. It can be used to part-finance up to 50% of further investments in infectious diseases diagnostics solutions on Biocartis’ Idylla™ platform.
The debt financing facility consists of two tranches, each with a minimum amount of EUR 6m. The first tranche is to be drawn within 12 months following signing and the second tranche within 18 months following disbursement of the first tranche. The facility has a duration of up to six years as of the disbursement of the first tranche. Biocartis is entitled to forgo drawdowns on the facility. Furthermore, the facility enjoys a senior ranking and security position comparable to the Company’s existing multi-purpose credit facility.
Idylla™ is a fully automated, compact laboratory, based on real-time PCR1 technology. Today, access to molecular diagnostic (MDx) information – key to enable better treatment decisions - is difficult: most hospitals send out the samples to specialized labs, which is time-consuming and labor-intensive as it can take up to several weeks before results are available. With Idylla™, there is no need for complex laboratory infrastructure or specialized staff2, which allows fast and easy access to clinical molecular diagnostic information, closer to the patient.
Carlos Moedas, European Commissioner for Research, Science and Innovation, said: "Under Horizon 2020, our research and innovation programme, we aim to boost the growth of innovative companies developing deep-tech solutions with breakthrough potential. Biocartis is a fine example of such a company. But this deal is also an investment in the improvement of healthcare and wellbeing of our citizens.”
EIB Vice-President Ambroise Fayolle, reacted: “Research and development is an indispensable part of the healthcare sector, but also the one with the highest risk, which can sometimes make it challenging to finance. Thanks to the support of the European Commission under the InnovFin program, the European Investment Bank is very glad to provide financing to Biocartis in rolling out their Idylla™ technology that has the potential to significantly speed up the identification and diagnosis of infectious diseases, enabling amongst others faster and better treatment decisions. This is what European innovation is all about.”
Herman Verrelst, Chief Executive Officer of Biocartis, commented: “This new debt financing facility that we now have at our disposal provides additional flexibility in achieving our aim to valorize the infectious disease capabilities of Biocartis’ technologies together with partners. We are pleased to have the European Investment Bank on board as a new financing partner, who today once more underlined its commitment to support innovative fast-growing companies within Europe.”
Background information :
Biocartis (Euronext Brussels: BCART) is an innovative molecular diagnostics (MDx) company providing next generation diagnostic solutions aimed at improving clinical practice for the benefit of patients, clinicians, payers and industry. Biocartis’ proprietary MDx Idylla™ platform is a fully automated sample-to-result, real-time PCR (Polymerase Chain Reaction) system that offers accurate, highly reliable molecular information from virtually any biological sample in virtually any setting. Biocartis launched the Idylla™ platform in September 2014. Biocartis is developing and marketing a rapidly expanding test menu addressing key unmet clinical needs in oncology and infectious diseases. These areas represent respectively the fastest growing and largest segments of the MDx market worldwide. Today, Biocartis offers fourteen oncology tests and two infectious disease tests in Europe. More information: www.biocartis.com. Press Photo Library available here. Follow us on Twitter: @Biocartis_.
About the European Investment Bank (EIB)
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. In 2017, the EIB invested over EUR 1,5 billion in projects across Belgium in support of transport, education and energy project, as well as support for small and medium sized enterprises. The loan to Biocartis comes after earlier InnovFin IDFF operations with Mobidiag and Curetis, as well as Cavidi, a small Swedish single product start-up company in the process of developing an HIV viral load testing device targeting the developing countries.
About the InnovFin Infectious Diseases Finance Facility (IDFF)
Launched under Horizon 2020, the EU research and innovation programme, InnovFin Infectious Diseases Finance Facility (IDFF) provides financial products ranging from standard debt to equity-type financing for amounts typically between EUR 7.5m and EUR 75m, to innovative players active in developing innovative vaccines, drugs, medical and diagnostic devices or novel research infrastructures for combatting infectious diseases. Project costs may include clinical trial costs, set-up of commercialization such as market access, development of prototypes or industrial roll- out of novel equipment, pre-clinical R&D costs and working capital requirement. This facility is delivered directly by the EIB.
Biocartis and Idylla™ are registered trademarks in Europe, the United States and other countries. Biocartis trademark and logo and Idylla™ trademark and logo are used trademarks belonging to Biocartis. This press release is not for distribution, directly or indirectly, in any jurisdiction where to do so would be unlawful. Any persons reading this press release should inform themselves of and observe any such restrictions. Biocartis takes no responsibility for any violation of any such restrictions by any person. Please refer to the product labeling for applicable intended uses for each individual Biocartis product. This press release does not constitute an offer or invitation for the sale or purchase of securities in any jurisdiction. No securities of Biocartis may be offered or sold in the United States of America absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended.
This press release may contain forward-looking statements. Such forward-looking statements are not guarantees of future performance. These forward-looking statements speak only as of the date of this press release. Biocartis expressly disclaims any obligation or undertaking to release any updates or revisions to any forward-looking statements in this press release, except if specifically required to do so by law or regulation. You should not place undue reliance on forward-looking statements.
* Polymerase Chain Reaction or PCR is a technique used in the laboratory to make millions of copies (amplify) small sections of a particular section of DNA or gene. It is used for example for the detection of the presence or absence of a gene to help identify pathogens during infection.
** The Idylla™ molecular diagnostic tests run on the Idylla™ platform and provide results between 35-150 minutes with less than two minutes hands- on time.