QUANTUM SURGICAL (EGF VD)

Promoter – Financial Intermediary

QUANTUM SURGICAL SAS

Location

• France

Description

The Promoter is a French commercial stage innovative medical device company that develops and commercialises a robotic platform to assist surgeons performing complex surgical procedures in a minimally invasive manner.

Additionality and Impact

The financing of this project addresses the failure in financial markets for RDI, arising from limited access and/or higher cost of financing as a result of factors such as information asymmetries (linked to, and intensified by, the inherent uncertainty of RDI activities, leading to high screening and monitoring costs), misalignment of incentives, lack of collateral and/or lack of track record.

Through EGF support, the operation addresses the need of financially underserved companies operating in the sector of minimally invasive liver cancer treatments. The contribution to EU policy is therefore significant.

The EIB's contribution is notable on both the financial and non-financial side. Thanks to the EGF-backing, the EIB may provide stable long-term funding, tailored to meet the 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. The venture debt product (equity risk) has a tailor made structure matching the borrower's expected cash flow generation. Thanks to EIB involvement, the borrower may crowd in other financing due to the lower level of perceived risk. The borrower will likewise benefit from the EIB's financial structuring expertise and technical contribution and advice.

Objectives

The proposed transaction will support research and development (R&D) investments, Clinical and Regulatory spending that are required in order to advance the development of a Computerized Tomography (CT)-guided robotic surgery platform allowing surgeons and interventional radiologists to safely and accurately accomplish percutaneous ablation procedures. It will initially address percutaneous ablation procedures in the liver, with the aim to democratise this minimally invasive treatment to other interventions in the abdomen, and later to other soft tissue organs.

Comments

Quantum Surgical S.A.S. is a French commercial stage innovative medical device company that develops and commercialises a robotic platform to assist surgeons performing complex surgical procedures in a minimally invasive manner.

Sector(s)

• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

EUR 15 million

Total cost (Approximate amount)

EUR 67 million

Environmental aspects

The project mainly concerns investments in R&D 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 the Directive 2014/52/EU amending the EIA Directive 2011/92/EU. Full environmental details will be verified during the appraisal.

Procurement

The Promoter is a private company not operating in the utilities sector and not having the status of a contracting authority; thus, the project is not covered by the 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 will verify details during the project due diligence.

Status

Signed - 7/10/2021