Release date: 9 January 2024
Promoter – Financial Intermediary
ZEALAND PHARMA A/SLocation
Description
The project supports the promoter's research activities to develop a diversified portfolio of novel preclinical and clinical-stage peptide-based medicinal products treating metabolic, gastrointestinal and rare diseases.
Additionality and Impact
The loan will provide direct quasi-equity financing supported by the Invest EU mandate to finance RD&I activities of an innovative Danish biopharmaceutical for advancing the development of its diversified portfolio of novel preclinical and clinical-stage peptide-based drug-candidates targeted at rare diseases, metabolic, gastrointestinal and cardiovascular disorders. The Company's expertise lies in the discovery and development of next generation peptide-based therapeutics.
The financing of this project provides an additional source of supportive capital for RDI-driven European SMEs requiring non-dilutive financing options supporting significant investments required by clinical trials. The creation of knowledge and support of skilled jobs in Denmark will further contribute positively towards the EU's 3% RDI intensity target. The European markets volatility in access to long-term funds has increased more recently, both for equity and non-dilutive commercial debt markets for risky and research-intensive companies.
The financing structure is bespoken for the investment needs and to the partnering business model of the Company, requiring specific carve-outs for this operating model. It features a long tenor and deferred interest which minimise upfront cash outflows during investment period. Most of the EIB remuneration is linked to the future success of its drug portfolio in the form of deferred interest and warrants.
Objectives
The aim is to support the development of various drug candidates with significant and detrimental social and economic cost. The project will also supports the development of drugs aimed at improving standard care for people living with rare diseases, whose medical needs are currently unmet.
Sector(s)
Proposed EIB finance (Approximate amount)
EUR 90 million
Total cost (Approximate amount)
EUR 340 million
Environmental aspects
The project concerns investments in research and development activities 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 environmental impact assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU.
Procurement
The promoter is a private company, not operating in the utilities sector and does not have 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 will verify details during the project due diligence.
Status
Signed - 21/12/2023
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).