Debt Case Study: Immunic AG

EUR 25m European Investment Bank Infectious Diseases Finance Facility
Immunic EIB FCF Life Sciences

Company Description

  • Immunic AG (Immunic) is a clinical-stage biopharmaceutical company with a pipeline of selective oral immunology therapies aimed at treating chronic inflammatory and autoimmune diseases
  • The company develops three small molecule products including relapsing-remitting multiple sclerosis, ulcerative colitis, Crohn’s disease, and psoriasis
  • Its lead development program is IMU-838, a selective immune modulator that inhibits the intracellular metabolism of activated immune cells by blocking the enzyme dihydroorotate dehydrogenase, which is in phase 2 clinical development for treatment of ulcerative colitis,
    relapsing-remitting multiple sclerosis and Crohn’s disease
  • Immunic is also evaluating IMU-838 as treatment for COVID-19
  • Founded in 2016 and headquartered in Munich, Immunic currently has approximately 26 employees and has been listed on NASDAQ since 2019

Transaction Highlights

  • In order to finance the R&D expenses of its COVID-19 program in the
    amount of EUR 50m, Immunic was required to raise additional funds
    either from public capital markets or through growth debt
  • FCF introduced Immunic to the Infectious Diseases Finance Facility
    (IDFF) prioritizing COVID-19 programs at that time
  • The EIB granted Immunic a debt facility of ~EUR 25m to finance its
    phase 2 study in COVID-19, to further support a phase 3 study as well
    as the commercial production of IMU-838
  • For Immunic, the most compelling advantages of the debt facility were:
    • The EIB as a financing partner with long-term horizon
    • The non-dilutive nature of the loan
    • Tranches tailored to the business liquidity needs
  • Standard market rates are included, i.e. cash, deferred and
    performance-based interest rates

Drug Pipeline*

Immnic Pipeline

*as of 12/01/2021

FCF’s Role in the Transaction

  • Direct access to relevant sector team at the EIB
  • Management of accelerated financing process through proactive preparation of required tax, finance, business and regulatory documents
  • Planning of an EIB-specific R&D budget
  • Development of a purpose-built business case and EIB-specific, integrated financial model
  • Support in the commercial, financial and tax due diligence process
  • Negotiation of the term sheet and support in the finalization of financing contract

If you are interested in exploring funding opportunities from the European Investment Bank, please contact us: