Noerr advises EIB on the EUR 50m financing agreement with Pluristem to develop therapies for Covid-19 and other unmet medical needs

A team from law firm Noerr led by Michael Schuhmacher and Andreas Naujoks has advised the European Investment Bank (EIB) on the provision of a venture debt loan to Pluristem's German subsidiary Pluristem GmbH.

Pluristem is a regenerative medicine company with a focus on novel biological products. The company uses cells derived from placenta for the development of product candidates for the treatment of severe medical conditions such as infections, inflammation, ischemia, muscle injury, haematological disorder or acute radiation syndrome. It has recently extended its activity in response to the coronavirus pandemic and treated several COVID-19 patients with acute respiratory failure under the “compassionate use” programme, a treatment option which allows the use of unauthorised medicine for severely ill patients.

The financing will support Pluristem’s research and development in the EU, notably its regenerative cell therapy platform. It will also allow the company to push its advanced clinical pipeline towards marketing. Pluristem will receive the financing in three tranches, subject to the achievement of pre-agreed clinical regulatory and scaling up milestones. The first tranche will consist of € 20 million. The company is the first Israeli-European business to benefit from a guarantee from the European Fund for Strategic Investments, the financial centre-piece of the Investment Plan for Europe, in which the EIB and the European Commission are working together to mobilise investment in the EU. Pluristem was previously funded by the Israel Innovation Authority.

Advisors to the European Investment Bank (EIB): Noerr LLP

Michael Schuhmacher, Andreas Naujoks (joint lead), Dr Dorian Legel (all Banking & Finance, all Frankfurt)

For US law (Snell & Wilmer L.L.P.): Kade D. Miller

For Israeli law (Herzog Fox & Neeman): Ben Kanter, Aviram Hazak