POST-ACUTE SEQUELAE COVID RDI (IEU TI)

The project finances the Borrower's expenditures to develop their lead product as a treatment for Long Covid. The financed R&D will be carried out in France.

The loan will finance research, development and innovation (RDI) investments to further advance the promoter's product pipeline.

The EIB will support the promoter, an early-stage innovative biotechnology SME specialised in neurodegenerative and autoimmune diseases to develop potentially the first evidence-based treatment for Long-Covid. The project, if successful, is expected to have significant financial and broader social benefits, in terms of improved health and welfare. While the promoter does not yet have any commercial stage products, the promoter and its staff have long experience bringing innovative products through clinical trials. By supporting the promoter, the EIB enables the generation of European scientific knowledge and acumen, whilst preserving highly skilled employment opportunities. Due to volatility and deterioration of the environment on the capital markets, access to equity financing is limited for innovative but risky companies such as the promoter. The financing structure is adjusted to the investment needs resulting from the R&D and clinical trials carried out by the promoter. The 5 years tenor provides a sufficient time frame for the company to complete the clinical trials and to initiate the first commercial sales. Thanks to the support of InvestEU, the EIB may provide long term financing in the form of venture debt to a highly innovative but high-risk early-stage company with no access to commercial debt. By contributing to extending the cash runway and therefore to de-risking the development plan of the company, the EIB financing is expected to crowd-in third party investors and allow the company to accelerate its development.

The promoter's investments concern RDI activities to be carried out in existing facilities already authorised for the same purpose. As such, they would therefore not require an environmental impact assessment (EIA) under Directive 2011/92/EU. Full environmental details will be verified during appraisal.

The promoter is a private company, not operating in the utilities sector and which does not have 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 EIB's services will verify details during the project due diligence.