The European Union is supporting biotech company Bavarian Nordic with a €30m loan from the European Investment Bank (EIB) which is guaranteed under the European Fund for Strategic Investments (EFSI).
The EIB loan support for the Bavarian Nordic will allow the biotechnology company to accelerate commercialisation of their vaccine production.
Bavarian Nordic will use the funding they will receive from the Junker Plan 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
- Lyophilised and
- Live biological products.
The facility will also 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.
Paul Chaplin, President and CEO of Bavarian Nordic said: “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.”
Why is the support so significant?
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.”
European companies are innovative in many areas, EIB Vice-President Alexander Stubb said: “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.”
With Venture Capital investment increasing this is one of many investments from the EIB that will benefit development and commercialisation within medical research.