The European Union is supporting biotech company Bavarian Nordic with a EUR 30m loan from the European Investment Bank (EIB). The loan is guaranteed under the European Fund for Strategic Investments (EFSI), the heart of the Investment Plan for Europe, in which the EIB is the European Commission’s strategic partner.
Bavarian Nordic will use the funding to build and furnish a fill-and-finish-facility on its existing production site in Kvistgård, Denmark, allowing the accelerated deployment of advanced biotechnological manufacturing processes and technologies for the production of vaccines. The new facility is designed to handle aseptic liquid, lypophilised and live biological products, and will add up to 1200m2 to the total production area. The financing will cover part of the capital expenditure on the project, which runs from 2018 to 2020.
European Commissioner Vytenis Andriukaitis, responsible for Health and Food Safety, said: "Global health security is a matter of universal concern and key priority for the European Commission. The Ebola crisis showed that very clearly and gave us an important lesson on the necessity to work together to prevent new types of threats. The EIB loan allocated today under the Juncker Plan shows once again a joint commitment to support the EU's capacity to deal with health threats by encouraging the research and development of innovative therapies against infectious diseases, cancer and other threats."
“This is one of those examples where European companies are truly innovative." said EIB Vice-President Alexander Stubb. “When we think of European security we often forget that biohazards and diseases pose a very real threat, making vaccines all the more important. The EIB’s financing will allow Bavarian Nordic to expand, thus reinforcing European life science business as well as contributing to the European Security Initiative in defending against potential bioterrorism threats.”
“Infectious diseases and bioterrorism remain top threats to public health in Europe and around the world,” said Paul Chaplin, President & CEO of Bavarian Nordic. “The non-dilutive financing from the European Investment Bank provides us with the flexibility to enhance our manufacturing capabilities while continuing to focus on our first-class vaccine research and development.”
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. In 2017, the Bank made available slightly over EUR 1 billion in loans for Danish projects, an absolute record, in various sectors including services, industry and SMEs.
With over 400 employees, Bavarian Nordic is a fully integrated biotechnology company focused on the development, manufacturing and commercialisation of innovative therapies against infectious diseases and cancer. Founded in Kvistgård, Denmark in 1994 and quoted on the Danish Stock Exchange since 1998, Bavarian Nordic is committed to research and development and operates a commercial scale manufacturing facility. Bavarian Nordic has a pivotal role in the fight against communicable diseases, notably Ebola. Furthermore by developing defence mechanisms against potential bioterrorism threats, such as Smallpox, Bavarian Nordic is a key contributor to the European Security Initiative.
The Investment Plan for Europe focuses on strengthening European investments to create jobs and growth. It does so by making smarter use of new and existing financial resources, removing obstacles to investment, providing visibility and technical assistance to investment projects. The Investment Plan is already showing results. The approved projects and agreements for financing under the EFSI so far (by July 2018) are expected to mobilise EUR 335 billion in total investments across 28 Member States and to support 700 000 SMEs. In September 2017, the Council and Parliament agreed to extend the EFSI by increasing its firepower and duration as well as reinforcing its strengths. Find the latest EFSI figures by sector and by country here. For more info, see the FAQs.