EUR 160m Under Innovfin To Support Getinge’s Developments In Medical Technology
The European Investment Bank (EIB) has provided a EUR 160 million loan to Getinge AB, a global medical technology company, for its research and development in the areas of surgery, intensive care, infection control, care ergonomics and wound care. Getinge’s research addresses unmet medical needs and targets the development of new devices with higher efficiency and safety for increased positive outcomes for both caregivers and patients.
In particular, the company aims at advancing its technology in the fields of cardiac surgery, cardiology, intensive care and emergency medicine. Further development will concern the area of critical care and surgical workplaces, including anaesthesia machines, continuous glucose monitoring and operating tables.
Jonathan Taylor, EIB Vice-President with responsibility for lending in Sweden, stated: “We are pleased to be partnering with Getinge in this breakthrough operation as it enables the EU bank to support future technologies whose concrete applications will improve the health of European citizens. Projects such as this strengthen the competitiveness and boost the innovative capacity of European health-related industries and businesses, so enhancing Europe’s position as a major technology supplier and supporting skilled employment opportunities.”
The project backed by the EU bank covers the entire research and development cycle from initial concept to clinical trials. It will be implemented until 2017 at the promoter’s research and development facilities located in Germany, Sweden and France, thus safeguarding the opportunities for the skilled workforce in these countries. Given Getinge’s collaboration with universities and public research programmes, the knowledge acquired through the research activities will also be widely disseminated across Europe.
This is the first EIB operation in Sweden supported by the new generation of financial instruments for innovative and growth companies “InnovFin – EU Finance for Innovators”, with the financial backing of the European Union under Horizon 2020. The “InnovFin Large Project” facility is specifically dedicated to improving access to risk finance for research and innovation projects originating from larger firms in the European Union.
Background information
About EIB
The European Investment Bank (EIB) is the long-term lending institution of the European Union and is owned by the EU Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. In 2014, EIB financing in Sweden amounted to EUR 1.41 billion, with the main focus on projects promoting sustainable transport, energy efficiency and urban development.
About Getinge Group
Getinge Group is a global leading medical technology company that operates in the areas of surgery, intensive care, infection control, care ergonomics and wound care. Getinge Group has nearly 16,000 employees in over 40 countries and generates sales of almost SEK 27 billion (EUR 2.9 billion) (2014). The Group is divided into three business areas: Medical Systems, Extended Care and Infection Control – and operates under the brands of Maquet, ArjoHuntleigh and Getinge.
InnovFin financial products
Under Horizon 2020, the new EU research programme for 2014-20, the European Commission and the European Investment Bank Group (EIB and EIF) have launched a new generation of financial instruments and advisory services to help innovative firms access finance more easily. Over the next seven years, “InnovFin – EU Finance for Innovators” will offer a range of tailored products which will make available more than EUR 24bn of financing support for research and innovation (R&I) by small, medium-sized and large companies and the promoters of research infrastructures. This finance is expected to support up to EUR 48bn of final R&I investments.
InnovFin builds on the success of the Risk-Sharing Finance Facility developed under the seventh EU framework programme for research and technological development (FP7), which financed 114 R&I projects to the tune of EUR 11.3bn and in addition provided loan guarantees worth over EUR 1.4bn.
Backed by funds set aside under Horizon 2020 and by the EIB Group, InnovFin financial products support R&I activities, which by their nature are riskier and harder to assess than traditional investments, and therefore often face difficulties in accessing finance. All are demand-driven instruments, with no prior allocations between sectors, countries or regions. Firms and other entities located in EU Member States and Horizon 2020 Associated Countries will be eligible as final beneficiaries. These debt instruments will be complemented in the near future by a suite of equity instruments managed by the EIF.
InnovFin Large Projects aims to improve access to risk finance for R&I projects emanating from larger firms, universities and public research organisations, R&I infrastructures (including innovation-enabling infrastructures), public-private partnerships, and special-purpose vehicles or projects (including those promoting first-of-a-kind, commercial-scale industrial demonstration projects). Loans and guarantees from EUR 25m to EUR 300m will be delivered directly by the EIB.
