Up to €100 million funding for Ottobock to develop new prosthetics, orthotics & mobility products
The European Investment Bank (EIB) has announced it is providing access to significant funding for Ottobock to enable the German mobility and med-tech manufacturer to drive product research and development in the coming years.
Confirmed in December 2019, the fresh funds from the EIB is provided under the European Commission’s Investment Plan for Europe, also known as the Juncker Plan, which is one of the EU’s top priorities for boosting investment across its 28 member states.
Providing financing of up to €100 million to Ottobock, the market leader in prosthetics says it will use the finance to develop new products and product improvements, with a particular focus on prosthetics, orthotics and human mobility.
Jörg Wahlers, Chief Financial Officer for Ottobock, commented: “We are delighted that EIB is supporting us in financing R&D alongside long-standing international partners on the private bank side. Our aim is to make devices in Orthotics & Prosthetics (O&P) and wheelchairs even easier and more intuitive to use thanks to brand new technologies.”
The EU bank’s substantial loan is backed by a guarantee from the European Fund for Strategic Investments (EFSI) and is aimed at supporting Europe’s life-sciences activity and expertise.
Ambroise Fayolle Vice-President of the EIB, who is also responsible for EFSI, said: “Innovation is crucial to survive in this industry and hence high R&D and technology spending is essential. While large players can leverage synergies and achieve economies of scale within their R&D departments, niche players such as Ottobock are often challenged to allocate resources and accelerate the RDI to keep up with the competition.
“This is exactly where EIB comes into play. For us, the EU bank, it is a top priority to support investment that is geared towards innovation and greater competitiveness. This is part of our mission to foster sustainable growth and jobs in Europe. I therefore very much welcome our cooperation with Ottobock, in particular as the company is celebrating its 100 birthday this year.”
The world’s leading prosthetic and orthotic manufacturer, Ottobock was launched in Berlin in 1919 and has continued to grow substantially whilst remaining privately owned.
For a number of years, talk of the company going public has circulated and in January 2019, Ottobock’s Chief Executive Philipp Schulte-Noelle told a German newspaper that an initial public listing would not happen before 2020.
