200 biotech companies and investors call on EU to carry out urgent capital reform
More than 200 European biotech companies, investment funds and organisations are calling on EU leaders to take urgent action to secure more growth capital, streamlined regulation and deeper European capital markets. Without reform, Europe risks losing not only companies and investment, but also jobs, strategic autonomy and faster access to new treatments, they say in an open letter published on Monday.
In the open letter, the European Life Sciences Coalition (ELSC) warns that while Europe possesses strong scientific expertise, leading research institutions and promising start-ups, it too often fails to develop these breakthroughs into large companies and treatments for patients.
Europe also remains at a significant financial disadvantage compared to other regions, the letter states. The EU attracts only 7 per cent of global venture capital in life sciences, compared to 63 per cent for the United States and 14 per cent for China. As a result, European biotech companies frequently have to seek funding outside the continent to finance their growth.
The capital shortfall is particularly acute given the long and uncertain development cycles inherent to biotech. New therapies require years of research, clinical trials and substantial investment, and not every project ultimately leads to an approved medicine.
"Europe has everything it needs to play a leading role in life sciences globally: strong science, entrepreneurship and a growing biotech ecosystem," said Jérôme Van Biervliet, managing director of The Flemish Institute for Biotechnology (VIB). "But to do so, we need to act more swiftly to secure more growth capital, more efficient regulation and a stronger European innovation climate."
According to the signatories, life sciences account for around 9.4 per cent of European GDP and nearly 1,500 billion euros in added value. Together, ELSC members have supported the creation of more than 1,400 life sciences and biotech companies and manage over 25 billion euros in specialised assets.
Belgian signatories include argenx, Biotalys, Rainbow Crops, Agomab, Protealis, MRM Health and myNEO Therapeutics, along with major investors and funds such as Novo Holdings, Forbion, Sofinnova Partners, Omega Funds, HealthCap and Van Lanschot Kempen.
#FlandersNewsService | © BELGA PHOTO JONAS D'HOLLANDER
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