ANNOUNCEMENT 06 Aug 2020
In August 2020, the European Investment Bank (EIB) approved a EUR 20 million (approx. USD 23.7 million) loan to Spanish biopharmaceutical company Sanifit, oriented to biotech innovation.
NUMBER OF INTERVENTIONS
European Investment Bank. Financed Projects. SANIFIT (EGFF). 06/08/2020. Available at: https://www.eib.org/en/projects/loans/all/20190654
European Investment Bank. Press Release. Spain: Biotech innovation - the EIB provides €20 million in financing to Sanifit to develop treatments for vascular calcification. 06/08/2020. Available at: https://www.eib.org/en/press/all/2020-222-biotech-innovation-in-spain-the-european-investment-bank-provides-eur20-million-in-financing-to-sanifit-to-develop-treatments-for-vascular-calcification
European Fund for Strategic Investments – EFSI. EUROPEAN GROWTH FINANCE FACILITY. 13/09/2019. Available at: https://www.eib.org/en/scoreboards/all/122912044
Sanifit. About us. Available at: https://www.sanifit.com/#aboutus
On 06 August 2020, the European Investment Bank (EIB) approved a loan agreement of EUR 20 million (approx. USD 23.7 million) in benefit to the Spanish biopharmaceutical company Sanifit for the development of novel treatments in two disease indications linked to calcification.
According to the EIB, the long-term finance will be oriented to research, development and innovation (RDI) activities, hence will be deployed under the Investment Plan for Europe framework.
In this context, EIB Vice-President Emma Navarro, responsible for the EIB’s operations in Spain, highlighted the “positive impact of this operation on strengthening the competitiveness of the European biomedical industry”. Moreover, Dr. Joan Perelló, CEO of Sanifit declared that “the support of the EIB represents a significant endorsement of (their) technology and its potential to help patients suffering from debilitating conditions related to progressive vascular calcification”.
Sanifit is a clinical-stage biopharmaceutical company focused on treatments for vascular calcification disorders. The company is a spin-off from the University of the Balearic Islands and has offices in Spain and the U.S. Sanifit is currently underway of Phase 3 clinical trial of their lead asset: SNF472.
A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support granted here is discriminatory.
The EIB's loan for the amount of EUR 20 million (approx. USD 23.8 million) loan with the Spanish biopharmaceutical company Sanifit, signed on 6 August 2020, formed part of the EIB’s strategy to support biotech companies called "European Growth Finance Facility". Hence, it was backed by the European Fund for Strategic Investment (EFSI). The loan aims to support the development of novel treatments in two disease indications linked to calcification.
The EFSI is a joint initiative by the EIB and the European Commission to promote investment in Europe, acting as the main pillar of the Investment Plan for Europe. It provides first-loss guarantees enabling the EIB to invest in more and often riskier projects. The loan described above was issued under the EFSI and thus benefits from a full guarantee through the EU budget.
EFSI support does not fall under EU State Aid rules as it is meant as a tool to address "market failures or sub-optimal investment situations". However, the investment support does include favourable conditions in the form of public assumption of risk.