Release date: 26 January 2022
Promoter – Financial Intermediary
BONE THERAPEUTICS SALocation
Description
The project concerns the Promoter's research and development plan for innovative allogeneic cell therapy solutions in the field of bone diseases and orthopaedics, as well as against COVID-19.
Additionality and Impact
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 Bone Therapeutics, a Belgian clinical-stage SME specialising in addressing unmet medical needs in the field of orthopaedics and bone diseases. The Company is developing a portfolio of bone cell therapy solutions across a range of indications, such as delayed fracture healing and spinal fusion. The Company is also developing a viscosupplement for the treatment of knee osteoarthritis. Bone Therapeutics does not have access to medium-term financing for the amounts required to complete its investment plan. Thanks to the European Guarantee Fund, the EIB may provide stable long-term funding with a flexible repayment, which is tailored to meet the R&D expenditures during project implementation by limiting significant cash outflows from the Company in the short to medium term, thereby enabling it to focus on investing in innovation and growth.
Objectives
The proposed transaction will support the emergence of innovative allogeneic cell therapy solutions for various conditions in the field of orthopaedics and bone diseases, which place a heavy economic burden on healthcare systems and are areas of high unmet medical need. It will also support the Company's COVID-19 programme, which targets the acute respiratory distress syndrome associated with the disease. The proposed transaction will enable the Company to contribute to increasing the quality of life of patients, and also encourage the growth and development of European scientific acumen.
Sector(s)
- Services - Professional, scientific and technical activities
Proposed EIB finance (Approximate amount)
EUR 16 million
Total cost (Approximate amount)
EUR 61 million
Environmental aspects
The Promoter's investments concern research, development and innovation activities 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 2011/92/EU. Full environmental details will be verified during appraisal.
Procurement
The Promoter is a public company, not operating in the utilities sector and does not have the status of a contracting authority; thus the project is not covered by 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 verified details during the project due diligence.
Status
Signed - 30/06/2021
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).