Debt Case Study: AMW GmbH
EUR 25m European Investment Bank Growth Finance Facility
Company Description
- The Company is a full-service, one-stop-shop pharma company, developing complex and innovative drug delivery systems:
- Transdermal delivery systems, e.g. patches
- Parenteral delivery systems, e.g. implants
- The Company successfully develops attractive and innovative branded generics for oncology and neurology / psychiatry therapies, pain management and hormonal treatments
- AMW focuses predominantly on prescription products (RX), with only a few non-prescription products (OTC) in its portfolio
- The Company´s strategy is to develop and license own products to global pharma companies, while still working on selected contract research and manufacturing projects
- Additionally, AMW develops new advanced drug delivery systems, e.g. microchip controlled patches or subcutaneous biodegradable implants
Transaction Highlights
- To promote future growth, the Company intends to:
- Administer new clinical studies for the development and registration
of new drug delivery systems for various indications, e.g. breast
cancer, Parkinson’s disease, diabetes and ongoing strong pain - Develop innovative production technologies together with the
installation of state-of-the-art R&D / production facilities
- Administer new clinical studies for the development and registration
- FCF suggested to apply for an EIB development debt facility
- The most relevant advantages of the EIB debt for the company are:
- The possibility of large financing volumes combined with lower costs compared to equity
- The EIB as a financing partner with long-term horizon and the non-dilution of the shareholder structure
- Low proportion of cash-based and high proportion of performance based interest rate