The European Investment Bank (EIB) is providing EUR 15m to Marinomed Biotech AG, a Vienna- based biopharmaceutical company developing innovative therapies for allergy, respiratory and eye diseases. The EU bank’s loan is backed by a guarantee from the European Fund for Strategic Investments (EFSI), the heart of the Investment Plan for Europe – also known as the Juncker Plan – under which the EIB and the European Commission are working together as strategic partners and the EIB’s financing operations are boosting the competitiveness of the European economy.
Marinomed has developed an advanced R&D portfolio and pipeline of products, based on two proprietary technologies – the Carragelose® and Marinosolv® platforms. The EIB’s financing will support the development of Marinomed’s two platforms. The most advanced clinical programmes under the Marinosolv® platform include an innovative drug delivery solution for indications in allergic Rhinitis (i.e. hay fever) and allergic Conjunctivitis and Dry Eye. The pivotal Phase III clinical trial for Marinosolv® lead product Budesolv was initiated as planned in January. The results are expected to be published by the end of the second quarter of 2019.
Andrew McDowell, EIB Vice-President responsible for financing in Austria, said: “With our higher-risk financing to Marinomed we are addressing a market gap of non-dilutive long-term growth capital for highly innovative SMEs. Marinomed can now fully focus on growing its business. This is an excellent example of the value added that the Investment Plan for Europe provides for young and innovative business. We bring together EIB funds and EU budget guarantees to work on deals that otherwise wouldn’t have been financed by the EU bank in the same advantageous way.”
Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said:”I welcome this agreement under the Investment Plan, which proves once again that innovation and improved healthcare go hand in hand. Top-notch innovation will help European med-tech companies compete successfully in the global market. I want to congratulate Marinomed for seizing the opportunity offered by the Investment Plan and I hope many more Austrian innovative businesses will follow the example.”
Andreas Grassauer, CEO of Marinomed, commented: “With our innovative technology platform Marinosolv® we plan to enter the multi-billion dollar market for the treatment of allergies and eye diseases. We see the EIB’s support as further strong confirmation of the enormous medical and commercial potential of Marinosolv®. The EIB financing, together with the proceeds from the IPO, will enable us to accelerate our growth and to leverage the full potential of our platforms.”
The corresponding contracts were signed in Luxembourg on 25 February. The EIB funding will be paid to Marinomed in 2019-2022 and will be repayable in 2024-2027.
European Investment Bank
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
Marinomed Biotech AG
Marinomed Biotech AG is a Vienna based biopharmaceutical company focusing on the development of innovative products derived from patent protected technology platforms to treat respiratory and ophthalmic conditions. The Carragelose® platform comprises innovative patent protected products targeting viral infections of the respiratory tract. Carragelose® is used in nasal sprays, throat sprays and lozenges, which are sold in more than 30 countries around the world in collaboration with international partners. The Marinosolv® technology platform increases the efficacy of hardly soluble compounds for the treatment of sensitive tissues such as the eyes and nose. Further information is available at www.marinomed.com.
Investment Plan for Europe
The Investment Plan for Europe (the Juncker Plan) is one of the EU's key actions to boost investment in Europe, thereby creating jobs and fostering growth. To this end, smarter use will be made of new and existing financial resources. The EIB Group is playing a vital role in this investment plan. With guarantees from the European Fund for Strategic Investments (EFSI), the EIB and the European Investment Fund (EIF) are able to take on a higher share of the risk in projects, encouraging private investors to participate in these projects. EFSI was initially intended to mobilise investment of EUR 315bn throughout the EU over a period of three years until mid-2018. In December 2017, the European Parliament and Member States reached an agreement to extend the duration of EFSI to 2020 and increase its financial capacity to EUR 500bn. Up to now, projects and transactions approved for financing under EFSI are expected to mobilise almost EUR 380bn in investments, including EUR 4.4bn in Austria, and support 842 000 SMEs in the 28 Member States. In addition to EFSI, the new EIAH advisory platform helps public and private-sector project promoters to structure investment projects more professionally. The investment plan should also create a more investment-friendly EU regulatory environment, particularly in the digital, energy and capital markets sectors.