(27 May 2015)
HOA 02 - 2016 + 2017 InnovFin Infectious Diseases (InnovFin ID) Pilot
Specific challenge: Infectious diseases (ID) pose a major global health threat as they are the
second leading cause of mortalities, accounting for approximately 17% of deaths with the
highest burden in low and middle-income regions. ID R&D is confronted with a more
accentuated funding gap which hampers the development of novel interventions, and a lack of
investment from industry. In addition, many existing ID treatments are jeopardised by the
emergence of antimicrobial resistance, which threatens the effective prevention and treatment
of an ever-increasing range of infections. The support for the fight against infectious diseases
constitutes a key public health priority for the European Union.
Scope: This action will contribute to the InnovFin ID pilot established under the InnovFin1
umbrella which is developed jointly by the European Commission and European Investment
Bank. An InnovFin ID Operation shall relate to pre-commercial stage investments in the field
of ID, i.e. the project produces innovative vaccines, drugs, medical and diagnostic devices or
novel research infrastructures in the field of ID. Projects developing innovative vaccines,
drugs, medical and diagnostic devices must have gone successfully through the preclinical
stage and preferably through early stage clinical development and now require clinical
validation or be ready for later stage clinical trials in order to be eligible for InnovFin ID.
Projects on research infrastructures must refer to facilities, resources and related services to be
used by the scientific community to conduct top-level research and must be novel e.g. not
replicate what already exists, in order to be eligible for InnovFin ID. The InnovFin ID
Operation must have proven public health impact and potentially have market prospects.
Promoters must be willing to substantially co-fund the project with own funds (shareholders’
equity) for at least 25% of the identified project costs. The project and/or the IP development
(e.g., clinical trials) can be undertaken outside Member States and H2020 Associated
Countries.
InnovFin ID will make loans of between € 7.5 million and up to €75 million to large
pharmaceutical companies for financing the development of pre-identified medical products
on a risk-sharing basis, and to midcaps, SMEs, project vehicles or research institutions for the
purpose of corporate or project finance transactions. Other forms of finance may also be
possible.
Expected impact: InnovFin ID Pilot will help in:

1
Increasing the EC investment in infectious disease research: Leverage is created by a 95%
First Lost Piece (FLP) which implies that for 1 EUR of EU budget allocated to InnovFin
ID, the EIB will lend 1.05 EUR. Additionally, as the EIB finances on average 33% of the
project costs while the rest comes from co-financing via other sources, an average
multiplier effect of 3x will be generated. Furthermore, projects could after 3 years move
from the 95% guarantee provided by the FLP to a situation where risked is shared with the
EIB. Assuming a maturity for each loan of 10 years, this means that 1/3 of the loan life
http://www.eib.org/products/blending/innovfin/index.htm
would fall under the 95% FLP guarantee, and 2/3 would not be guaranteed. This means
that 1 EUR of FLP will be used 3x during the life of the facility. Thus for 1 EUR of EU
budget allocated to the IDFF, the EIB would lend about 3 EUR over the life time of the
facility. The combination of these effects would generate at least a 9x multiplier.

De-risking investments and hence encouraging industry, in particular, to invest more
heavily in this area; preparing for further roll-out to the market of new drugs, vaccines,
diagnostics and medical technologies to combat ID; This action is expected to deliver at
least 5 new medical interventions within the first 36 months

Fostering the healthcare sector and hence creating jobs and growth in the EU.
Indicative timetable: Start of InnovFin ID pilot 2015, with contribution from SC1 from 2016.
Reporting on the progress of the implementation of InnovFin ID and the results will be done
by EIB and EC every 6 months. The initial ramp-up phase will be 3 years after which the
credit risk of the portfolio will be assessed for continuation.
Selection procedure: The InnovFin ID selection procedure will follow the same rules as set in
the current InnovFin Delegation Agreement. Selection occurs after a due diligence process set
up by the EIB and according to alignment to pre-defined eligibility criteria. The due diligence
procedure by the EIB will assess the financial potential. An Eligibility Committee set up in
the EC will assess the scientific value. Eligible projects will be financed on a first-come firstserved basis.
Indicative budget: EUR 50 million from the 2016 budget and EUR 50 million from the 2017
budget. Subject to the level of demand for loans under the InnovFin ID pilot, this budget may
be reviewed on the basis of the first results achieved in 2016. Furthermore, the EC
contribution is expected to be replaced or complemented by EFSI and/or from other investors
as well as by reflow from InnovFin ID.