Hogan Lovells acts for European Investment Bank on its first pharma loan in Ireland

Hogan Lovells, the global law firm, has advised the European Investment Bank (EIB) on a new €20 million loan to Amryt Pharma plc (Amryt), which has developed a new treatment for the rare and inherited skin condition called Epidermolysis Bullosa (EB).  Amryt is a specialty pharmaceutical company focused on developing and delivering innovative new treatments to help improve the lives of patients with rare or 'orphan' diseases.

Epidermolysis Bullosa is a rare and inherited skin disorder that causes the skin to become very fragile and for which there is currently no available treatment. Amryt Pharma recently secured a US patent for the use of Episalvan in the treatment of EB, having previously obtained a patent in Europe for the treatment of all partial thickness wounds, including those from Epidermolysis Bullosa.  The Epidermolysis Bullosa treatment market in the US and Europe is estimated to be worth around €1.5 billion a year.

The loan financing will provide Amryt Pharma with short- and mid-term funding for its lead product, Episalvan, and to progress with other new medicines.  Over the last decade the EIB has provided more than €130 billion to support innovation investment across Europe.

Hogan Lovells was the EIB's lead counsel on this deal, with a cross-border finance practice team drawn from its London and Frankfurt offices with Dublin based law firm, Mathesons, acting as EIB's Irish counsel.

London finance partner, Andrew Taylor, said

"This was a great deal to be involved with, and it was particularly interesting to learn about the work of Amryt Pharma and the huge potential of its new treatment for this rare skin condition".

The Facility is split into three tranches, with €10 million available immediately and two further tranches of €5 million available upon the achievement of certain milestones in relation to Episalvan.

The Facility has an interest rate of 3% over the Euro Interbank Offered Rate to be paid periodically, with a further 10% accruing and payable in a bullet together with the outstanding principal amount on expiry of the Facility.

The new European Investment Bank loan to Amryt is part of the European Growth Finance Facility and backed by a guarantee from the European Fund for Strategic Investments (EFSI).


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