Investment Plan for Europe: European Investment Bank to provide BioNTech with up to €100 million in debt financing for COVID-19 vaccine development and manufacturing

vaccinations_

(Credit: Unsplash)

This article is brought to you in association with the European Commission.


  • EIB debt instrument will support BioNTech’s global development of BNT162 for prevention of COVID-19 infection as well as scale-up of manufacturing capacity in Europe as part of the company’s global development and supply strategy
  • The project benefits from Horizon 2020 InnovFin and the European Fund for Strategic Investments, joint instruments of the European Commission and the EIB

The European Investment Bank (EIB) and BioNTech (Nasdaq: BNTX, BioNTech) today concluded a €100 million debt financing agreement to support the development of BNT162, the company’s COVID-19 vaccine programme. The deal will also allow the company to expand its manufacturing capacity in order to supply the vaccine fast worldwide in response to the pandemic. This will be done at the company’s own risk while the clinical studies are ongoing. BioNTech became the first European company to enter clinical testing, having started a clinical trial in Germany in April and a further clinical trial in the United States at the beginning of May. BioNTech’s development programme for BNT162 is one of the broadest development programmes globally, with four vaccine candidates being tested in parallel.

mRNA vaccines consist of genetic material, called messenger RNA, that provides instructions for a human cell to make a target protein, or immunogen, which activates the body’s immune response against the respective virus. The goal of a vaccine is to stimulate the immune system to generate protective, long-lasting antibody and T cell responses against SARS-CoV-2 and prevent subsequent infection upon exposure to the virus. mRNA vaccines are a potent new developmental class of vaccines with potential for high versatility and favourable safety properties. BioNTech was able to bring the first vaccine candidates from concept into clinical testing in less than three months. Safety, speed and flexibility are of the utmost importance in reacting to the current pandemic.

The EIB debt investment will be disbursed in two tranches of €50 million each, following completion of pre-defined milestones. It is backed by the European Fund for Strategic Investments, the financial heart of the Investment Plan for Europe, in which the EIB and the European Commission partner to kick-off investment for EU priority projects. It also benefits from InnovFin Risk Sharing for Corporate Research backed by Horizon 2020, the EU Framework Programme for Research and Innovation.

Mariya Gabriel, Commissioner for Innovation, Research, Culture, Education and Youth, said: “As part of our efforts to counter the spread of the coronavirus, we have embarked decisively on the worldwide race to find an effective and safe vaccine as quickly as possible. For this purpose we recently launched the Coronavirus Global Response initiative, while at the same time we mobilised significant funding through Horizon 2020 for research projects aimed at developing a prophylactic and a therapeutic vaccine. I am very pleased that today, together with the European Investment Bank, we are extending our support to BioNTech, which is yet another concrete step towards our goal of getting a vaccine and ensuring access to it for all.

The only way to end the dramatic situation the world has been facing since the outbreak of the coronavirus pandemic is to come up with a safe and effective vaccine,” said Ambroise Fayolle, EIB Vice-President in charge of innovation. “In recent years the EIB has become a unique player in supporting highly innovative venture-stage biotech and medtech companies in their research and development of vaccines, therapeutics and diagnostics solutions, and we are doing everything we can to step up our support in the current crisis.”

The investments we have made to develop our vaccine platform over the past 12 years have been instrumental in enabling us to develop our COVID-19 vaccine programme rapidly in response to the global health crisis,” said Sierk Poetting, Chief Financial Officer & Chief Operating Officer of BioNTech. “This funding commitment by the EIB will further support the next stage of our COVID-19 scale-up activities as we expand our production capacity to enable global supply.

BioNTech already entered into a €50 million venture debt agreement under the European Growth Finance Facility for its personalised cancer immunotherapy programme in December 2019. The financing was part of broader EIB activities in the life sciences sector. Some 50 European companies in the life sciences industry have received a total of €1.3 billion, backed by the European Fund for Strategic Investments, over the last four years.

Background information

About the European Investment Bank

The European Investment Bank is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investments in order to contribute towards EU policy goals. The EIB also supports investments outside the EU.

About BioNTech

Biopharmaceutical New Technologies (BioNTech) is a next generation immunotherapy company pioneering novel therapies for cancer and other serious diseases. The company exploits a wide array of computational discovery and therapeutic drug platforms for the rapid development of novel biopharmaceuticals. Based on its deep expertise in mRNA vaccine development and in-house manufacturing capabilities, BioNTech and its collaborators are developing multiple mRNA vaccine candidates for a range of infectious diseases alongside its diverse oncology pipeline.

About the Investment Plan for Europe

The Investment Plan for Europeis one of the EU’s key actions to boost investment in Europe, thereby creating jobs and fostering growth. To this end, smarter use is 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, the EIB and the European Investment Fund are able to take on a higher share of project risk, encouraging private investors to participate in the projects. To date, the projects and agreements approved under EFSI are expected to mobilise around €486 billion of investments and to benefit around 1.2 million small and medium-sized companies throughout the EU.

InnovFin – EU Finance for Innovators

Under Horizon 2020, the EU research and innovation programme for 2014-2020, the European Commission and the European Investment Bank Group (EIB and EIF) launched a new generation of financial instruments and advisory services in 2014 to help innovative firms access finance more easily. Until 2020, “InnovFin – EU Finance for Innovators” is offering a range of tailored products which provides financing in support of research and innovation by small, medium-sized and large companies and the promoters of research infrastructure.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Only one in five countries has a healthcare strategy to deal with climate change

Latin America and Caribbean region deadliest for journalists in 2019

Rohingya crisis: EU strengthens humanitarian support with €10 million

Toni Morrison: 10 quotes you should know

Drones, disinfectant, distancing – Europe’s beaches open up

UN chief condemns student abductions in north-west Cameroon

Here’s how we make the internet safer for children

Fairness should be at the heart of the agricultural goods trade

More hiring freedom can reduce teacher shortages in disadvantaged areas

COVID-19: A new drug is tested, and other top science stories of the week

‘Still time’ to stop a ‘bloody battle’ for Libya’s capital, insists Guterres

Banking package: Parliament and Council reach an agreement

EU adopts retaliative measures in response to US steel and aluminum tariffs

European Commission 2020 Work Programme: An ambitious roadmap for a Union that strives for more

Georgia: EU report highlights importance of maintaining reform momentum and depolarising the political environment

This new solar technology can be printed or woven into fabric

Amazon indigenous groups want to create a nature sanctuary the size of Mexico

Water scarcity is a growing problem across the Middle East. Is this how we solve it?

The EU learns about fishing and banking from tiny Iceland

Wednesday’s Daily Brief: Syrian detainees, Zimbabwe hunger crisis, Kabul attack, Mexico disappearances, new tech to feed the world

Search Engine neutrality in Europe in danger: Are 160.000 Google filtering requests good enough?

TTIP fight round 6: last chance for the negotiators to finally open up as they touch the Brussels ring

The middle-class dream is moving beyond millennial reach

FROM THE FIELD: Survival in Yemen against all odds

Cybersecurity needs a holistic approach. Here are three ways to build protection

Why saving our forests should be a global priority

Why people with disabilities are your company’s untapped resource

A 3-step path to securing critical infrastructure

It’s time to stop talking about ethics in AI and start doing it

Rights defenders jailed in Bahrain and UAE should be released unconditionally, UN urges

Brexit update: can the UK General Election of 12 December 2019 lead to a Brexit extension to 2030?

New seat projections for the next European Parliament

Coronavirus global response: EU Humanitarian Air Bridge to Afghanistan and further support

Catalan Pro-Independence vote: how many hits can Brussels sustain at the same time?

Myanmar military committed ‘routine, systematic’ sexual violence against ethnic minorities, UN experts find

‘Reasons to hope’ for sustainable peace in Central African Republic – UN Mission chief

Young people are Europe’s biggest value and hope

Algorithmic warfare is coming. Humans must retain control

ITU Telecom World 2018 takes place in Durban, South Africa

Europe and UN form bulwark against ‘might makes right’ worldview, EU foreign affairs chief tells Security Council

Teenagers’ career expectations narrowing to limited range of jobs, OECD PISA report finds

Rising landmine blast toll in Afghanistan highlights long-term care needs of survivors

These are the world’s best universities

Technophobe or technophile? We need more conversation about digital transformation

Coronavirus: European Commission calls for action in protecting seasonal workers

Ηealth’s foundation is falling apart: what can we do about it?

‘Never give up’: UN chief urges all who serve, marking UN Day

The new crisis is already creeping into the financial system

New General Assembly President brings ‘valuable insights’ into key UN challenges

How to promote Primary Healthcare to the Young Healthcare Workforce?

Can we measure the temperature of human cells? A young scientist explains

Two-thirds of global drug deaths now from opioids: UN drugs report

South Africa still hasn’t won LGBTQ+ equality. Here are 5 reasons why

A silent killer: the impact of a changing climate on health

Close to final agreement on the EU Banking Union

‘Passport to dignity’ that schools represent may expire fast, without emergency funding warns UN Palestine refugee agency

EU’s new environmental policy on biofuels impacts both the environment and the European citizen

Over 1 million health consultations provided in Yemen in 2019: UN migration agency

The mother of all fights about inflation, growth and banks

High level political talks didn’t break the stalemate in Ukraine

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s