Priothera is a clinical stage company developing receptor modulators for haematologic malignancies, i.e. cancers that affect blood, bone marrow, and lymph nodes (e.g. leukaemia). Priothera is developing a novel drug, mocravimod for acute myeloid leukaemia (AML) with an aim of enhancing the curative potential of Hematopoietic Stem Cell Transplantation (HSCT).
The proposed transaction will support research and development (R&D) investments that are required in order to advance the clinical development of an innovative product in indications that address a high unmet medical need. By co-investing in the project, the Bank contributes to improving healthcare, whilst also fostering the generation of European scientific knowledge and acumen, preserving and cultivating highly skilled employment opportunities. Developing orally applied receptor modulators for hematologic malignancies, i.e. cancers that affect the blood, bone marrow, and lymph nodes, commonly known as leukaemia.
The project concerns a venture debt operation under the European Guarantee Fund. The purpose of the loan is to provide direct equity-type financing under EIB's Venture Debt Instrument to bridge the liquidity need of the innovative company 'Priothera', an SME based in Ireland, which has been impacted by the Covid-19 pandemic. The company is a small growth stage research-based pharma SME, developing solutions for haematological cancers. The financing of this project addresses the failure in financial markets for RDI-driven SMEs, arising from their limited access to financing as a result of factors such as information asymmetries, misalignment of incentives etc. Creation of knowledge and support of skilled jobs in Ireland will further contribute positively towards the EU's 3% RDI intensity target. Hence, EIBs involvement in this project supports the development of an innovative medicinal product with important health benefits, which would otherwise have been significantly delayed due to the Covid-crisis.
The project mainly concerns investments in R&D that are expected to be carried out in existing facilities already authorised for the same purpose and would therefore not require an environmental impact assessment (EIA) under the Directive 2014/52/EU amending the EIA Directive 2011/92/EU. Full environmental details will be verified during the appraisal.
The Promoter is a private company not operating in the utilities sector and not having the status of a contracting authority; thus, the project is not covered by the EU Directives on procurement. However, the Promoter's procurement procedures are expected to be in line with EIB guidelines for private sector projects. The Bank's services will verify details during the project due diligence.
Priothera is a clinical stage, pre-revenue company developing orally applied receptor modulators for haematologic malignancies, i.e. cancers that affect the blood, bone marrow, and lymph nodes, commonly known as leukaemia. As a first indication Priothera is targeting Acute Myeloid Leukaemia (AML), which is the most common form of leukaemia. It is a rare and severe disease, and therefore, classified as an orphan disease.
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