The EIB will support SDS Optic with an amount of EUR 10 million

October 2, 2023

The EIB will support SDS Optic with EUR 10 million for the research, development, and commercialization of the groundbreaking inPROBE^® technology platform

On October 2, 2023, SDS Optic S.A., based in Lublin, signed a venture debt financing agreement for up to EUR 10 million with the European Investment Bank (EIB) under the InvestEU Research Innovation and Digitalisation Window (RIDW) 1.1. Health Innovation program. The aim of this program is to provide funding for projects with high social and economic value that contribute to the achievement of EU policy objectives.

SDS OPTIC S.A. is a company specializing in the development of innovative real-time medical diagnostic devices for cancer, infectious, viral, bacterial, and fungal diseases. The company's key technology is a micrometric fiber-optic microsensor which, when combined with elements of molecular biology, chemistry, and medical bioengineering, forms an innovative biosensor capable of performing biological measurements of live tissue inside the patient's body (so-called in vivo testing) with exceptionally high sensitivity and specificity. One such device is the inPROBE^®-branded tool for detecting the HER2 biomarker in breast cancer.

Our vision is to help increase survival rates for cancer and other chronic diseases by 30% by the year 2030. We strive to achieve this by creating and implementing breakthrough medical technologies at the intersection of and in combination with photonics, molecular biology, immunochemistry, and medical bioengineering. Without a doubt, the financial support obtained from the European Investment Bank will significantly accelerate our development and enable us to bring new applications to market much faster than we originally anticipated and on a much larger scale. This is yet another sign of trust we have received from an international and highly reputable institution, following a very strict verification and approval of our scientific results and technologies,” said Marcin Staniszewski, CEO of SDS Optic.

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SDS Optic thus joins the prestigious group of innovative Polish biotechnology companies that cooperate with the European Investment Bank, enhancing their potential and accelerating the development and commercialization of groundbreaking products in the fields of biotechnology and medical innovation.

The Vice-President of the European Investment Bank, Professor Teresa Czerwińska, said: "Supporting development, research, and innovation is one of the European Investment Bank’s priorities. That is why we are pleased to collaborate with SDS Optic, an ambitious Polish company specializing in the development of innovative medical diagnostic devices. EIB financing will enable the company to continue its dynamic growth and develop further technologies that will accelerate diagnostic processes and benefit patients' health."

The EIB will support SDS Optic with up to EUR 10 million (over PLN 45 million). The financing will be disbursed in three tranches, contingent upon the achievement of specific milestones outlined in the agreement. An additional condition for each tranche will be the issuance by SDS Optic of subscription warrants in favor of the EIB, representing up to 8.5% of SDS Optic's fully diluted share capital as of the date of signing the financing agreement.

"The European Investment Bank supports only the most trustworthy and groundbreaking technologies emerging in Europe. The selection, negotiation, due diligence, and transaction closing processes were very demanding. This confirms our skills and competence in handling such challenging negotiations with global institutions, as well as successfully conducting legal and technological audits and contractual processes in collaboration with some of the world’s leading law firms. We are very proud to become one of the companies trusted and supported by the EIB. On behalf of our team, I am delighted to announce this news—especially since it is yet another example of SDS Optic’s ability to develop its projects effectively while diversifying its sources of financing. Our company is ready to move forward and begin achieving the goals we have set for the coming years,” said Mateusz Sagan, SVP and COO of SDS Optic.

The European Investment Bank also signed an additional guarantee agreement with FiBioMed as the primary guarantor and a related company of SDS Optic. As a result, SDS Optic gains control over the flow of funds between itself and the related entity, FiBioMed, ensuring the stable development of a new application area from SDS Optic's project pipeline. FiBioMed was established to leverage the research findings on the diagnostic capabilities of optical fibers from the inPROBE^® platform technology in the diagnosis of infectious diseases.

Under the signed agreement, the EIB will support SDS Optic's investment objectives, such as:

• •research and development personnel and market access
• •further research and development of entities associated with SDS Optic
• •scaling and development of new applications
• •coverage of costs related to preclinical studies of new inPROBE^® applications
• •clinical trials of new inPROBE^® applications
• •expenses related to obtaining regulatory approvals
• •internal research and development of new applications
• •expenses related to the protection of intellectual property
• •the development of SDS Optic infrastructure and the purchase of modern research equipment for the research and development center, including machines and devices for the new semi-industrial pilot production of photonic parts for biosensors inPROBE

The company has already met a significant portion of the conditions required for the first payment. This includes obtaining the ISO 13485 certificate issued by the notified body TÜV NORD GROUP; during the last share issue, €1 million was also secured; additionally, the first phase of clinical trials for the microsensor for detecting HER2 breast cancer has been completed.

The collaboration between SDS Optic and the European Investment Bank could benefit not only the parties involved but, more importantly, have a significant impact on the international medical market and improve the efficiency of medical staff workflows. The project holds tremendous potential to radically enhance the quality of life for patients worldwide by providing faster, less painful, and more accurate diagnostic results — ultimately aiming to increase the cancer patient survival rate by 30% by 2030.

Additional information

The EIB Group is a European Union institution that provides long-term loans and is owned by the EU member states. It consists of the European Investment Bank (EIB) and the European Investment Fund (EIF). The Group provides financial support for investments that contribute to the achievement of EU policy objectives, such as social and territorial cohesion and a just transition towards climate neutrality.

The InvestEU Program provides key long-term financing to European Union businesses by mobilizing substantial public and private funds. This support helps generate additional investments aligned with major European priorities such as the European Green Deal, digital transformation, and support for SMEs. InvestEU consolidates several EU financial instruments that support investment by streamlining and making project financing more efficient and flexible. The program consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. By providing €26.2 billion in EU budgetary guarantees to support financial and investment operations, the InvestEU Programme aims to attract public and private funding to mobilize at least €372 billion in additional investments by 2027.

SDS Optic S.A. specializes in developing innovative real-time medical diagnostic devices for cancer, infectious, viral, bacterial, and fungal diseases, as well as health monitoring devices. The company's goal is to provide faster, more accurate, and less invasive diagnostics to support the effectiveness of targeted therapies.

The Company’s key technology is inPROBE^® – a micrometric fiber-optic microsensor which, when combined with elements of molecular biology, chemistry, and medical bioengineering, forms an innovative biosensor capable of performing biological measurements of living tissue inside the patient’s body (so-called in vivo testing) with extremely high sensitivity (picograms/ml – pg/mL) and specificity.