Lithuania. UAB Celltechna
| Date of agreement: | 18 Apr 2024 |
|---|---|
| Country: | Lithuania |
| Customer: | UAB Celltechna |
| Amount in EUR: | EUR 22.5 million |
| Maturity: | 10 years |
| NACE sector / loan type: | Manufacture of pharmaceuticals |
Project
The loan has been provided to finance a greenfield gene therapy manufacturing facility in Vilnius.
The investments are part of the company’s strategic decision to expand its product offering from biopharmaceuticals to gene therapy treatments.
The new Gene Therapy Centre of around 8,000 square metres will include clean-room areas and production equipment for development and manufacturing processes. It is expected to provide jobs for approximately 100 professionals by the end of the decade.
The commercial operations are expected to commence at the end of 2025.
The borrower, Celltechna UAB, is a small biopharmaceutical Contract Development and Manufacturing Organisation (CDMO) that provides drug development and manufacturing services to pharmaceutical companies in Europe and the US. The guarantor, Biotechpharma UAB, doing business as Northway Biotech, is a related company, with a focus on providing services to pharmaceutical research companies that work on discovering new drugs.
Fulfilment of NIB's mandate
Biotechpharma is a small mid-cap with operations in Vilnius. The company expects the expansion to create 100 new high value-added jobs and significantly increased its revenue.
According to the Lithuanian Biotechnology Association, the country’s Life Science sector has been growing by 19% annually. This is one of the most rapid growth paces across the European Union.
The expansion of Celltechna will contribute to the positive development of the sector which builds on Lithuania’s Universities’ strong track record in life sciences and biotechnology. Northway Biotech has an ambitious plan to build other facilities in the area that would eventually constitute a significant biotech industry hub.
Impact indicators in relation to the investments:
- Capex, EUR million
- Revenue from gene-therapy products in 2027, EUR million
Sustainability summary
The operation at the new facility requires several permits. The construction permit has already been granted, and other necessary documentation, including a potential environmental permit, is pending. The respective confirmation from an environmental authority is required for the project to be in line with NIB’s Sustainability Policy and Environmental, Social and Governance Guidelines for Lending, and thus for the loan disbursement.
