| Project Detail |
The proposed transaction supports the companys research and development (R&D) investments including inter alia the clinical regulatory and manufacturing development costs of the companys portfolio candidates with a focus on the lead gene therapies targeting rare central nervous system (CNS) diseases with 4 programmes (MPS IIIa, GM1 gangliosidosis disease, Gaucher disease and FragileX syndrome).
Additionality and Impact
The project concerns an operation under the European Guarantee Fund. The purpose of the loan is to provide direct, equity-type financing under EIBs Venture Debt Instrument to support Research, Development and Innovation ("RDI") activities of the innovative company Lysogene, a French SME focused on gene therapy for rare CNS diseases, which has been impacted by the COVID-19 pandemic. The financing of this project addresses the failure in financial markets for RDI, arising from limited access to commensurate financing as a result of factors such as information asymetries, misalignment of incentives, etc.
The Promoter is a dedicated biotech company that develops a innovative, disease-modifying treatments for young patients affected by disabling diseases of the CNS. Hence, the project targets unmet needs with high socio-economic impact. By creating knowledge externalities, the project will provide significant socio-economic benefits, will strengthen French and Europes leading position in medical technologies, and it will help to retain skilled staff engaged in the Companys RDI activities. EIBs financing would be complementary to European venture capital ("VC") investors and would provide a signaling effect to crowd-in other capital providers, which are necessary for the completion of the clinical development stage and the launch of commercial operations.
Thanks to EIBs involvement, this project will not be significantly delayed due to the crisis.
Objectives
The proposed transaction supports the companys R&D investments including inter alia the clinical regulatory and manufacturing development costs of all portfolio candidates with a focus on the lead products, i.e. SAF302, GM101 and FXS01. The EIB financing will also contribute to accelerate the screening and early stage pre-clinical development of new products, which are expected to constitute the backbone of the companys growth in the future. The project will be coordinated from the companys headquarters located in Neuilly-sur-Seine near Paris. |
