Affibody Medical AB has received a €20 million ($21.2 million) venture debt loan facility from the European Investment Bank, EIB, backed by the InvestEU program.
The investment will support Affibody’s research and development activities in Europe of the next-generation biopharmaceuticals targeting unmet medical needs in the immunology and oncology fields.
“We are very pleased and grateful for the support of the EIB, which will help concretize the road toward the first potential market approvals of a new class of biologicals that can improve and prolong life for a number of patient groups,” said David Bejker, CEO of Affibody.
The loan facility agreement is divided into three tranches, each with a maturity of five years, which will become available if the company satisfies certain conditions precedent including reaching specific business, research, and development milestones. If the company utilizes the loan facility, the EIB will be entitled to warrants in addition to the interest on the loan amount.
“Supporting promising biotech companies at clinical stage is crucial for furthering the competitiveness of Europe’s health and life science sector,” said EIB vice president Thomas Östros, responsible for Sweden.
“This project is well aligned with EIB’s investment strategy and our aim to support highly innovative biotech companies, developing breakthrough life science products, which have the potential to transform and greatly improve people’s lives. As such, we are pleased to support Affibody’s cutting-edge research into therapeutic solutions for cancer and inflammatory diseases, helping the company develop the next generation biopharmaceuticals.”