SOM BIOTECH (IEU TI)

Promoter – Financial Intermediary

SOM INNOVATION BIOTECH SA

Location

• Spain

Description

The project supports the research and development (R&D) activities of the promoter, in particular its focus on repurposing existing drugs to target orphan diseases and therapeutic areas of unmet medical needs.

Additionality and Impact

The purpose of the loan is to provide direct quasi-equity financing under the InvestEU Thematic Innovation instrument, benefiting from the EC guarantee, to the Spanish pharmaceutical SME SOM Biotech, to finance its research and development activities. The financing of this project addresses the failure in financial markets for RDI-driven European SMEs suffering from systematic shortage of large, non-dilutive funding options to fuel investments for growth.

SOM's expertise relies on drug repurposing, i.e., the repurposing of drugs already on the market to target new indications. In particular, the company is targeting therapeutic areas of orphan diseases, characterised by unmet medical needs, having therefore the potential to generate significant socio-economic benefits on top of financial returns. Moreover, the project is expected to support and create additional skilled job opportunities in Spain, as well as generate broader knowledge spill-overs.

Thanks to the InvestEU financing, the EIB may provide stable long-term funding, tailored to meet the Company's expenditures during project implementation.

EIB technical expertise has been important in the structuring of the initiative and it may remain relevant during monitoring activities.

Objectives

The loan will finance the much needed R&D investments to further advance the promoter's product pipeline and bring the products to the medical market.

Sector(s)

• Services - Professional, scientific and technical activities

Proposed EIB finance (Approximate amount)

EUR 8 million

Total cost (Approximate amount)

EUR 40 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 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, it 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 EIB services will verify details during the project due diligence.

Status

Signed - 3/11/2023