European Union provides Biocartis with up to EUR 24m debt financing facility for infectious disease projects
OREANDA-NEWS. Biocartis Group NV (the ‘Company’ or ‘Biocartis’), an innovative molecular diagnostics company (Euronext Brussels: BCART), today announces that it has obtained an up to EUR 24m debt financing facility from the European Investment Bank. The financing facility is supported by InnovFin – EU Finance for Innovators’ Infectious Diseases Finance Facility, with the financial backing of the European Union under its research and innovation programme Horizon 2020. It can be used to part-finance up to 50% of further investments in infectious diseases diagnostics solutions on Biocartis’ Idylla™ platform.
The debt financing facility consists of two tranches, each with a minimum amount of EUR 6m. The first tranche is to be drawn within 12 months following signing and the second tranche within 18 months following disbursement of the first tranche. The facility has a duration of up to six years as of the disbursement of the first tranche. Biocartis is entitled to forgo drawdowns on the facility. Furthermore, the facility enjoys a senior ranking and security position comparable to the Company’s existing multi-purpose credit facility.
Idylla™ is a fully automated, compact laboratory, based on real-time PCR1 technology. Today, access to molecular diagnostic (MDx) information – key to enable better treatment decisions - is difficult: most hospitals send out the samples to specialized labs, which is time-consuming and labor-intensive as it can take up to several weeks before results are available. With Idylla™, there is no need for complex laboratory infrastructure or specialized staff2, which allows fast and easy access to clinical molecular diagnostic information, closer to the patient.
Carlos Moedas, European Commissioner for Research, Science and Innovation, said: "Under Horizon 2020, our research and innovation programme, we aim to boost the growth of innovative companies developing deep-tech solutions with breakthrough potential. Biocartis is a fine example of such a company. But this deal is also an investment in the improvement of healthcare and wellbeing of our citizens.”
EIB Vice-President Ambroise Fayolle, reacted: “Research and development is an indispensable part of the healthcare sector, but also the one with the highest risk, which can sometimes make it challenging to finance. Thanks to the support of the European Commission under the InnovFin program, the European Investment Bank is very glad to provide financing to Biocartis in rolling out their Idylla™ technology that has the potential to significantly speed up the identification and diagnosis of infectious diseases, enabling amongst others faster and better treatment decisions. This is what European innovation is all about.”
Herman Verrelst, Chief Executive Officer of Biocartis, commented: “This new debt financing facility that we now have at our disposal provides additional flexibility in achieving our aim to valorize the infectious disease capabilities of Biocartis’ technologies together with partners. We are pleased to have the European Investment Bank on board as a new financing partner, who today once more underlined its commitment to support innovative fast-growing companies within Europe.”