Future medical technology investment by Galway based Aerogen will be supported by a €30 million loan agreed with the European Investment Bank (EIB) highlighted at the first sector focused EIB-IBEC financing workshop, which was held recently.
Representatives from 70 medtech companies from Galway and elsewhere in Ireland heard at first hand how new financial products can address challenges holding back innovation related investment and ensure expansion opportunities are not lost.
The new loan to Aerogen is the first direct lending to a medtech company under the EIB’s €150 million Irish corporate financing initiative. The programme enables the EIB to provide direct loans to mid-cap companies across the country for the first time and streamline the appraisal of financing applications.
First direct medtech financing
“The new €30 million European Investment Bank loan agreed with Aerogen is the first direct medtech financing under the EIB’s streamlined corporate lending programme for Ireland," said Andrew McDowell, EIB vice-president.
"This investment will both help to improve medical treatment by patients using Aerogen technology and create new specialist jobs in Galway.
"Following this agreement we look forward to working with Ibec and other Irish partners to ensure that other leading companies across Ireland can benefit from financing under the initiative and expect to announce new support for leading Irish medtech firms shortly.”
Irish Medtech Association director Sinead Keogh said: “Ireland’s dynamic medtech community is a world leader in developing innovative technologies that save and transform lives.
"The sector here is recognised internationally for its growth potential, as it has already added, €316 million in FDI investment, along with 2,300 jobs and €178 million in financing raised by startups, over the past 15 months alone.
"We’re delighted to have a senior delegation from the world’s largest financial institution, the European Investment Bank with us today in Galway. The latest numbers from the EIB show €1 billion was invested in Ireland in 2017, this is a great occasion for medtech startups to find out how they can tap into these funding opportunities to succeed.”
Backing new medical technology and job creation in Galway
Aerogen specialises in more efficient drug delivery using aerosol technologies, that both reduces drug use and overall hospital admissions. The EIB loan will be used by Aerogen to back more than €60 million of new investment.
This will expand research and development of new medical technologies by the world-leading drug delivery company, as well as expand manufacturing facilities in Galway.
“Over the last 20 years Aerogen has pioneered new medical technology based on cutting edge research to become a world leader in aerosol drug delivery," said John Power, Aerogen CEO and founder.
"This new financing from the European Investment Bank that reflects the specific financing needs of growing companies will enable Aerogen to continue to expand and develop next generation treatment.”
The new EIB financing will help to accelerate business development by Aerogen and further strengthen research and development by the company, including in specialist pharmaceutical fields. It is expected that 50 new jobs will be created in Galway following expansion of Aerogen research and manufacturing facilities backed by the new EIB loan.
EIB-Ibec roadshows to roll out scheme across Ireland
To ensure more Irish companies can benefit from EIB financing the European Investment Bank and Ibec will hold workshops across Ireland to outline details of the new financing initiative and highlight the benefits of the new direct lending scheme in a number of sectors.
The EIB is also working closely with the Irish government, Enterprise Ireland and corporate finance advisers across the country to strengthen awareness of new financial products developed to match the needs of Irish companies across a range of sectors and firms most vulnerable to Brexit.
The European Investment Bank is the world’s largest international public bank and last year provided nearly €1 billion for infrastructure and private sector investment across Ireland.