EU investment plan finances innovative medical research with 75 million-euro loan to Evotec

The Investment Plan for Europe continues to support innovative projects in the health sector. The European Investment Bank (EIB) is providing 75 million euros ($90 million) to German biotech firm Evotec  (EVT: Xetra) to invest in research and development of treatments for serious illnesses, the European Commission announced on Friday.

The loan is guaranteed by the European Fund for Strategic Investments (EFSI), the central element of the Investment Plan for Europe, the so-called Juncker Plan. Evotec will use this long-term financing boost to finance drug discovery and the development of new treatments for serious illnesses and diseases. The type of financing is also novel: it is the first large equity-type investment under EFSI in any industry anywhere in Europe. It also EFSI's first contingent investment, meaning the bank shares the risk of Evotec's R&D success.

Speaking at the signing event, Commission Vice President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: "The development of innovative treatments is a process which requires sustained investment. This is where the Investment Plan can play a role. I am glad that, with today's agreement, the Plan is supporting research which aims to tackle serious illnesses and diseases."