Release date: 19 November 2021
Promoter – Financial Intermediary
POCARED DIAGNOSTICS LTDLocation
Description
Developing a real-time, high-volume, reagent-free in vitro diagnostics system for infectious diseases, with a focus on Antimicrobial Susceptibility Testing ("AST") and Antimicrobial Resistance ("AMR").
Additionality and Impact
The project concerns a venture debt operation under the Infectious Disease Finance Facility in Israel.
As such, the project is strongly aligned with Israel and EU priorities as it meets the important objectives economic policy including promoting competitive industries and Research and Development (R&D). The project also supports EU Strategic Priorities as Israel is covered under the European Neighbourhood Policy. Moreover, Israel is a full partner in the Horizon 2020 Research Programme, which aim to speed up development of the technologies and innovations.
The financing of this project further addresses the failure in financial markets for R&D, arising from limited access to commensurate financing as a result of factors such as information asymmetries, misalignment of incentives etc. The Promoter is a dedicated technological company focusing on developing innovative diagnostics devices for multiple applications with infectious diseases targeting unmet needs with high socio-economic impact. Bank's involvement in this project will enable the innovation, development and manufacturing of leading-edge timely, accurate and non-invasive diagnostics within healthcare.
The financing structure is adjusted to the Company's investment needs, with a long-tenor and mostly deferred interest, minimising cash outflows, while the overall pricing is linked to the Company's performance thanks to the warrant component. The financing is expected to crowd-in other investors to co-finance the project, as the structure involves fundraising requirements.
Objectives
The proposed transaction will support research and development (R&D) investments required to bring products to the market addressing high unmet medical needs, in a growing patient population, preserving and cultivating highly skilled employment opportunities.
Sector(s)
- Services - Professional, scientific and technical activities
Proposed EIB finance (Approximate amount)
EUR 22 million
Total cost (Approximate amount)
EUR 46 million
Environmental aspects
The project mainly concerns investments in research and development (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 Directive 2014/52/EU amending the Directive 2011/92/EC.
Procurement
The Promoter is a private company, not operating in the utilities sector and 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.
Status
Signed - 21/12/2021
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).