Release date: 25 March 2022
Promoter – Financial Intermediary
INNOVACELL AGLocation
Description
The project concerns the Promoter's research and development plan of personalised cell therapies for the treatment of incontinence.
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 the EIB's venture debt instrument to bridge the liquidity needs of Innovacell, a clinical-stage SME specialising in addressing unmet medical needs in the field of faecal and urinary incontinence. The Company is developing innovative autologous cell therapies with the aim of curing faecal and urinary incontinence, which are debilitating conditions that severely impact patients' quality of life, can negatively affect mental health, and place a heavy economic burden on healthcare systems. Thanks to its bullet structure and to the royalty component, the EIB loan will enable the Company to invest in innovation and growth by diversifying its funding sources and crowding in private investors, while limiting cash outflows on the short to medium term.
Objectives
The proposed transaction will support the emergence of innovative autologous cell therapies for treating faecal and urinary incontinence with the aim of curing these diseases through regenerative medicine. Faecal and urinary incontinence are debilitating conditions that severely impact patients' quality of life, can negatively affect mental health, and place a heavy economic burden on healthcare systems. The project uses personalised medicine to address a patient population with high unmet medical need, a key pillar of Horizon Europe. The project supports research and development (R&D) efforts conducted in Europe by a small and medium-sized enterprise (SME), thus supporting generation of European scientific knowledge. Funding areas of high scientific innovation, such as regenerative medicine is paramount to developing and retaining European scientific acumen, whilst also contributing to the region's competitiveness.
Sector(s)
- Services - Professional, scientific and technical activities
Proposed EIB finance (Approximate amount)
EUR 15 million
Total cost (Approximate amount)
EUR 40 million
Environmental aspects
The project concerns investments in research and development activities, carried out by the Promoter and its partners in existing facilities without changing their already authorised scope. The project does not fall under the scope of the EIA Directive 2014/52/EU amending Directive 2011/92/EU. The Promoter maintains adequate internal procedures and management practices that are in line with best industry standards (e.g. GMP, etc.) and are subjected to audits. The project will be carried out according to state-of-the-art technology and will take into consideration environmentally friendly, low energy-and-resource consuming technologies.
Procurement
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 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 - 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).