PROTEMBO (IEU LS)

Promoter – Financial Intermediary

PROTEMBIS GMBH

Location

• Germany

Description

The project will finance the research, development and innovation activities of Protembis, a German MedTech company, designing a "best-in-class" catheter-based embolic protection device.

Additionality and Impact

The project is aligned with the InvestEU objective of promoting research, development and innovation. The purpose of the loan is to provide direct equity-type financing under INVESTEU , benefiting from the EC guarantee, to finance research and development activities of the innovative medtech company Protembis. The project, if successful, is expected to have significant financial and broader social benefits, in terms of improved health and welfare. Protembis' expertise lies in providing a sophisticated embolic protection device for structural heart interventions and creating clinical evidence to proof effectiveness. By supporting the promoter, the EIB enables the generation of European scientific knowledge and acumen, whilst preserving highly skilled employment opportunities. The technology is being first developed for transcatheter aortic valve repair (TAVR), with more indications to follow (mitral valve, septum closure, etc.). The financing of this project addresses the failure in financial markets for RDI-driven European SMEs suffering from systemic shortages of large, non-dilutive financing options for growth investments. Creation of knowledge and support of skilled jobs in Germany will further contribute positively towards the EU's 3% RDI intensity target. Currently, the Company does not have access either to non-dilutive or to long-term debt funding sources from traditional or even alternative debt providers. Due to volatility of European markets which has significantly increased since 2022, access to both equity markets and commercial debt providers has been highly limited for innovative but early-stage med tech companies such as Protembis. 

The financing structure is adjusted to the investment needs of the Company, with a long tenor and deferred interest, while most of the EIB remuneration will come in a form of warrants, minimising cash outflows. By contributing to extending the cash runway and therefore to de-risking the

development plan of the company, the EIB financing is expected to crowd-in third party investors and allow the company to accelerate its development. The project would not have been carried out (to the same extent) by the EIB without the InvestEU support.

Objectives

The aim is to finance a device that will help to minimise the risk of stroke, silent infarcts and other neurological injuries during cardiovascular interventions, such as transcatheter aortic valve implantation (TAVI).

Sector(s)

• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

EUR 20 million

Total cost (Approximate amount)

EUR 46 million

Environmental aspects

The promoter's investments concern RDI activities 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 Directive 2011/92/EU. Full environmental details will be verified during appraisal.

Procurement

The promoter is a private company, not operating in the utilities sector and does not have 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 the EIB guidelines for private sector projects. Further details will be assessed during the project due diligence.

Status

Signed - 26/07/2024