EIB injects EUR 150m into Gedeon Richter’s R&D operations in Hungary, one of the biggest research projects in central Europe

We are supporting research and development into innovative drug treatments in Hungary

7-5-2013 — /europawire.eu/ — For well over 100 years, Hungarian pharmaceutical company Gedeon Richter has been working to improve their clients’ health and quality of life. It has stepped up its research and development work in recent years and the EIB is helping because promoting innovation is one of our core aims. We have injected EUR 150m into one of the biggest research projects in central Europe.

Gedeon Richter operates the largest industrial R&D operation in Hungary, with an annual budget in excess of EUR 100m. More than 1 000 people (around 10% of its total workforce) work directly on innovation for the firm. “EIB funds will help to develop Hungary’s capacity for innovation…which will have positive implications for improving people’s quality of life and strengthening the competitiveness of the European pharmaceutical industries,” says EIB Vice-President Anton Rop.

Since 2007, the firm has been working in the area of biotechnology which is developing “biosimilars,” active drug substances made by or derived from a living organism. They are used principally to treat cancer and with immunology work. “Biosimilars are extremely demanding to produce and require very significant upfront investment,” explains Zsolt Szombathelyi, Head of R&D at Gedeon Richter. “Biosmilars are an increasingly competitive area on a global level and the speed of investment and project development is crucial. Any addition to our in-house resources, such as assistance from the EIB, is very important. This means that we can invest more dynamically and launch our research programmes faster,” concludes Mr Szombathelyi.

We stepped in with a EUR 150m loan using our Risk Sharing Finance Facility though which we support long term, complex research. This in turn encourages others to invest. RSSF is a joint effort of the EIB and the European Commission enabling us to provide loans, guarantees, equity investment and other support.

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