MIDIAGNOSTICS - COVID RAPID PCR (IDFF)

Promoter – Financial Intermediary

MIDIAGNOSTICS SA

Location

• Belgium

Description

The project supports the Company's research and development (R&D) investments and R&D-related capex to advance the development and launch of its molecular diagnostics platform for COVID-19 and other infectious diseases, including readers and cartridges featuring the Company's innovative silicon-based technology.

Additionality and Impact

The financing of this project supports R&D activities, which generate significant positive knowledge and technology externalities, through the creation of innovative products in the field of medical devices and through skills development and upgrading. The EIB helps the company to execute its demanding investment programme by providing long-term financing, which better mirrors the early-stage nature of the Company, and inherently higher level of uncertainty of returns from R&D activities. Furthermore, by supporting a European company in addressing medical needs in the therapeutic area of infectious diseases and COVID-19, the project may generate a significant contribution to the health and well-being of the European and global population. By supporting the Company, the EIB enables the generation of European scientific knowledge and acumen, whilst preserving highly skilled employment opportunities.
The EIB contribution is very relevant both on the financial and non-financial sides. Considering the EC's IDFF backing, the EIB may provide stable long-term funding tailored to meet the expenditures during the project implementation. This will limit significant cash otflows from the Company in the short to medium term, thereby enabling it to focus on investing in innovation and growth. Moreover, following the involvement of the EIB, the Company may crowd in other financing due to the lower level of perceived risk and benefit from the EIB's financial structuring expertise and technical contribution and advice.

Objectives

EIB financing will support and accelerate the research, development and innovation (RDI) efforts conducted by the Promoter in order to bring innovative solutions in the medical diagnostics space.

Sector(s)

• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

EUR 20 million

Total cost (Approximate amount)

EUR 43 million

Environmental aspects

The project concerns investments in research and development activities and capital expenditures carried out by the Promoter and its partners in existing facilities without changing their already authorised scope. The research and development activities of the project do not fall under either Annex I or Annex II of the EIA Directive 2014/52/EU amending Directive 2011/92/EU. The project's compliance with applicable national and EU environmental legislation will be verified during the appraisal.

Procurement

The Promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions. However, if after the project appraisal, the EIB were to conclude that the Promoter is after all subject to the EU public procurement legislation Directive 2014/24/EU, then the Bank would require that the Promoter ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation Directive 2014/24/EU, where applicable, as well as Directive 89/665/EEC as interpreted by the Court of Justice of the European Union, with the publication of tender notices in the Official Journal of the European Union, as and where required.

Status

Signed - 12/11/2021