BAYER PHARMACEUTICAL RDI

The project will support Bayer, an EU-based promoter, in its Research & Development (R&D) activities concerning its Pharmaceutical business. In detail, R&D refers to its pharmaceutical product pipeline targeting unmet medical needs, in particular related to therapeutic areas of Cardiology, Oncology care, Ophthalmology, Women's Healthcare, Radiology as well as Cross-disease research platforms and other R&D project work.

The project supports an European promoter in its efforts to foster its competitive position in high value-added products by investing in R&D activities. It contributes to the targets of Horizon Europe priorities of strengthening the EU's scientific and technological foundations and European Research Area (ERA) and increasing innovation capacity, competitiveness, and the number of jobs in Europe. Moreover, the project corresponds to Article 309 point (c) Common interest, contributing to the PPG "Innovation, Digital and Human Capital RDI". The products developed as a result of the project will address unmet medical needs, positively supporting the European effort in advancing the Sustainable Development Goal SDG3, "Ensure healthy lives and promote well-being for all at all ages". As such, the project would also improve the possibilities of social inclusion of people suffering from debilitating diseases including neglected diseases as addressed under this project, therefore the social value of the project is considered to be positive.

The project concerns a corporate project by a leading pharmaceutical company. The promoter is a knowledge-based company developing innovative therapies and treatment for life threatening diseases addressing unmet medical needs. With its continuous and relentless focus on R&D excellence the promoter is ranked among the 10 largest R&D investors in the EU and intends to continue its very high investments levels despite headwinds. The company's R&D intensity is above sector average contributing positively to the EU's 3% R&D intensity target. The Bank's financing will allow an EU R&D champion to continue improving its cutting-edge life science investments and development processes ensuring important benefits of bringing novel therapies to the patients in a timely manner. As such, the social value of the project is considered to be positive and over and above the financial return.

The Bank's contribution to the project is underpinned by a combination of advantageous terms, a meaningful loan amount as well as a signaling effect in terms of confidence in the business model, thereby facilitating the project's financing and full implementation.

The R&D activities are expected to be carried out in existing facilities that are already used for the same purposes and that are not expected to change their scope due to the project. An Environmental Impact Assessment (EIA) is therefore not needed as per EIA Directive 2014/52/EU (amending Directive 2011/92/EU). The full environmental details will however be investigated by the Bank's services during the project due diligence.

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the promoter is subject to the EU public procurement legislation then the Bank would duly inform the Commission Services and would require the promoter to apply those rules.