We are aware that the majority of the Swiss biotech companies are confronted with significant delays in their R&D projects due to the Covid pandemic. Consequently, many companies have reached out to the Swiss Biotech Association and federal and regional authorities to emphasize the need for emergency loans to gain time to complete planned financing rounds and finalize the delayed R&D projects.
While a number of companies have been able to successfully close financing rounds in Q2, 2020 (mostly based on data generated prior to the pandemic), we see clear signs that in Q3 and Q4 the effects of the pandemic will become more apparent. Hence, we continue to emphasize that R&D companies without significant revenues remain cut off from emergency loans in Switzerland. While the joint federal/cantonal program for startups might provide a solution in some cases, the initial observations point to a slow approval process, and many companies do not qualify for fundamental reasons.
So far, the SECO has not been supportive of extending the emergency loan to R&D companies without revenues.