EDAP Secures Loan to Foster Growth of its Robotic Ultrasound Platform

EDAP TMS SA has entered into a €36 million multi-tranche credit facility (loan) with the European Investment Bank (EIB).

Proceeds from the financing will support the continued global expansion of EDAP’s Focal One Robotic High-Intensity Focused Ultrasound (HIFU) platform. The funds will also accelerate the development of new clinical indications for the HIFU technology. EDAP expects is drawing the first €11 million tranche under the credit facility this quarter.

“This credit facility provides EDAP with an important source of strategic growth capital,” EDAP CEO Ryan Rhodes said. “These financial resources will enable us to further expand the reach of Focal One Robotic HIFU to meet the growing global patient demand for effective non-invasive treatment options for both cancer and benign conditions”

The credit facility provides a loan up to €36 million that can be accessed, upon achieving certain conditions and milestones, in three separate tranches: Tranche A for €11 million at an 8% interest rate, Tranche B for €12 million at a 7% interest rate, and Tranche C for €13 million at a 6% interest rate.

As additional remuneration for the loan, the company will issue a number of warrants to EIB specific to each tranche, which give the bank the right to subscribe to the most preferential class of company shares. The maturity date of the borrowings for each tranche is five years from the disbursement date. 

“Health and Life sciences are an important part of the European Investment Bank’s focus. The EIB is happy to support the next development phase of the Lyon-based medical technology company EDAP, and its robotic HIFU platform designed for treating prostate cancer and endometriosis with non-invasive solutions,” EIB Vice President Ambroise Fayolle stated.

EDAP TMS develops, manufactures, promotes and distributes worldwide minimally invasive medical devices for various conditions using ultrasound technology. By combining the latest technologies in imaging, robotics, and precise non-invasive energy delivery, EDAP introduced the Focal One in Europe and in the United States as a prostate focal therapy controlled by urologists with the potential to expand to multiple indications beyond prostate cancer.

The European Investment Bank (EIB), whose shareholders are the Member States of the European Union (EU), is the EU’s long-term financing institution. Across eight major priorities, the bank supports investments in climate action and the environment, digital transition and technological innovation, security and defense, cohesion, agriculture and the bioeconomy, social infrastructure, capital markets union, and a stronger Europe in a more peaceful and prosperous world. In 2024, the EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing in support of more than 900 projects in Europe and worldwide.