EU clears $2.2 billion Dutch state aid for medical isotopes for cancer treatment

By Foo Yun Chee

BRUSSELS (Reuters) - The Netherlands on Friday secured EU approval for 2 billion euros ($2.2 billion) of state aid to build a nuclear reactor to produce medical isotopes for cancer treatment.

The European Commission, which acts as the EU competition enforcer said the support helps ensure the security of supply of essential and live-saving medicines, confirming a Reuters story on Thursday.

The Netherlands, a leading producer of medical isotopes, proposed a new nuclear reactor for medical isotopes following concerns that shortages would arise after 2030.

The aid consists of loans and equity for a total amount of about 2 billion euros to a newly established company (NewCo) that will build and operate the reactor that produces the medical isotopes and the nuclear health centre.

"The Dutch authorities have committed to ensuring that NewCo, when operating PALLAS, will price its products at a level overing all costs associated with their production and commercialisation," the EU competition watchdog said.

"This 2 billion euro measure enables the Netherlands to support a strategic project contributing to the securing of supply of essential medicines and to the development of breakthrough innovation in the field of nuclear technology to the benefit of European citizens," EU antitrust chief Margrethe Vestager said.

(Reporting by Foo Yun Chee)