MENLO PARK, Calif., March 10, 2020 /PRNewswire/ -- New Energy Risk (NER), one of the leaders in customized insurance solutions for breakthrough technology projects, today announced that it has provided SHINE Medical Technologies, a development-stage company working to become the world's leading producer of medical isotopes, with an innovative performance insurance program for SHINE's groundbreaking production facility. The insurance solution provided by NER is a key component of SHINE's project financing and execution strategy.
SHINE's patented, proprietary isotope production process uses a safe, cost-effective and environmentally friendly technology to produce a variety of medical isotopes, including molybdenum-99, or Mo‑99, which is relied on for more than 40 million medical procedures every year. Roughly one percent of all Mo-99 in the world decays every hour, so it must be produced continuously. Current production is limited to a handful of government-owned nuclear research reactors, the majority of which are overseas. SHINE's facility will be the first non-reactor producer of Mo-99 in the United States. The facility will be capable of satisfying one-third of global patient need for Mo-99. SHINE's use of fusion technology solves the major problems caused by limited access to nuclear reactors and provides the potential to improve the lives of more than 1 billion people during the next 50 years.
To finance this development, SHINE raised capital from Deerfield Management Company and Oaktree Capital Management L.P., and approached NER, an affiliate of the global insurance group AXA XL, to design a custom performance insurance policy that would mitigate technology risk in this revolutionary project. NER utilized its proprietary technoeconomic analysis to extensively assess SHINE's technology, then developed an insurance product and monitoring schedule that covers the commissioning and output of the facility. This is the first time such a performance insurance product has been designed for a private medical isotope technology.
"2019 was SHINE's best year yet from a project finance and execution standpoint," said Greg Piefer, founder and CEO of SHINE Medical Technologies. "New Energy Risk's technology insurance solution was an important element of our success in 2019 and we are thrilled to be partnering with New Energy Risk on this unique approach."
"We're proud to have supported SHINE in their capital raise and are thrilled to apply our bespoke insurance solution for the first time in a critical medical field," said Tom Dickson, CEO of NER. "We are on a mission to partner with breakthrough technologies solving pressing global challenges, and SHINE is among the most impactful and exciting companies we have had as a client."
This project is among NER's growing portfolio of industrial projects that have cumulatively raised more than $2 billion in capital. Apart from the production of medical isotopes, NER's diverse clients have also planned to deliver or process annually: 441 thousand tons of recycled waste, 640 million kWh of energy, 50 million gallons of non-petroleum fuels, and 314 thousand tons of avoided CO2e.
About SHINE Medical Technologies LLC
Founded in 2010, SHINE is a development-stage company working to become a manufacturer of radioisotopes for nuclear medicine. The SHINE system uses a patented, proprietary manufacturing process that offers major advantages over existing and proposed production technologies. It does not require a nuclear reactor, uses less electricity, generates less waste, and is compatible with the nation's existing supply chain for Mo-99. In 2014, SHINE announced the execution of Mo-99 supply agreements with GE Healthcare and Lantheus Medical Imaging. In 2015, with the help of Argonne National Laboratory, GE Healthcare demonstrated that SHINE Mo-99 can act as a drop-in replacement for reactor-based Mo-99. In 2016, SHINE received regulatory approval from the Nuclear Regulatory Commission to construct its production facility. The company began construction of the facility in the spring of 2019. SHINE has raised more than $350 million from investors and government sources.
About New Energy Risk
New Energy Risk is a pioneer of large-scale, breakthrough technology performance insurance solutions. Founded in 2010, the company provides complex risk assessment and serves as a bridge between technology innovators, financiers, and insurers. New Energy Risk has helped its customers raise over $2 billion in financing for commercializing renewable energy and new technology deployments. Insurance policies are administered through New Energy Risk affiliate Complex Risk and Insurance Associates, LLC, CA License #0I24307. To learn more, visit www.newenergyrisk.com.
About AXA XL
AXA XL, the property & casualty and specialty risk division of AXA, provides insurance and risk management products and services for mid-sized companies through to large multinationals, and reinsurance solutions to insurance companies globally. We partner with those who move the world forward. To learn more, visit www.axaxl.com
SOURCE AXA XL; New Energy Risk