The Investment Plan for Europe continues to support innovative projects in the health sector.
The European Investment Bank (EIB) is providing €75 million to Evotec to invest in research and development of treatments for serious illnesses. The loan is guaranteed by the European Fund for Strategic Investments (EFSI), the central element of the Investment Plan for Europe, the so-called Juncker Plan. Evotec will use this long-term financing boost to finance drug discovery and the development of new treatments for serious illnesses and diseases.
The type of financing is also novel: it is the first large equity-type investment under EFSI in any industry anywhere in Europe. It also EFSI's first contingent investment, meaning the bank shares the risk of Evotec's research & development (R&D) success.
This agreement with Evotec comes days after agreements were finalised with MagForce to develop new treatments for brain cancer as well as Apeiron which also develops cancer treatment, particularly a rare type affecting children. Also today the European Investment Fund signed a deal with ACT Ventures to provide €20 million in financing to small tech businesses in Ireland.
For the latest EFSI figures country-by-country, see here.
The loan agreement is operated under the European Fund of Strategic Investments (“EFSI”). EFSI is an essential pillar of the Investment Plan for Europe (IPE), under which the EIB and the European Commission are working as strategic partners to boost the competitiveness of the European economy. The transaction is the first large success-sharing investment under EFSI in any industry anywhere in Europe. Furthermore, it represents EFSI’s first contingent investment, whereupon the bank shares the risk of its client’s research & development (R&D) success.
Evotec is a drug discovery alliance and development partnership company focused on rapidly progressing innovative product approaches with leading pharmaceutical and biotechnology companies, academics, patient advocacy groups and venture capitalists.
A full press release on today's agreement is available here.