Executives in the European biotech sector are divided over future innovation partnerships, with a recent survey indicating a slight preference for the United States over China as a key source of collaboration. The survey, released on October 7 by BIO-Europe, received 81 responses primarily from leaders of European, privately-held biotechs focused on preclinical and early clinical developments.
In the findings, 29 respondents identified the U.S. as the most important destination for future partnerships, while 24 chose China as their top choice. An additional 12 participants felt there would not be a definitive leader in this area. Europe lagged behind with only 11 executives predicting it as a primary source for innovation partnerships.
The survey also gauged the current competitiveness of Europe in the biotech partnership landscape, which received an average score of 2.8 out of 5. The report’s authors characterized this rating as “middling.” Approximately half of the respondents indicated that ongoing policy and regulatory uncertainty in the U.S. has made Europe a more appealing location for biotech development and partnerships.
However, long-standing barriers to securing capital in Europe appear to be hindering the region’s potential. Among the executives, 34 cited capital availability as the most significant obstacle to deal-making, with 13 mentioning a valuation gap between buyers and sellers, and 12 pointing to competition from Chinese assets.
Forty-two respondents identified access to capital as the primary industry challenge they would address if they could solve one issue immediately. Other commonly mentioned challenges included clinical trial efficiency and regulatory complexity, noted by 11 and eight executives, respectively.
Concerns about investor behavior also emerged prominently. Nearly 80% of the executives cited risk aversion among investors as the biggest constraint on biotech investment in Europe, while approximately 7% attributed limitations to geopolitical uncertainties. This assessment mirrors the conclusions drawn by the BioIndustry Association last year, which noted a reluctance among U.K. investors to engage in life sciences due to a pervasive risk-averse mindset.
As the landscape of biotech partnerships evolves, the insights from this survey highlight critical factors influencing the success and growth of European biotech firms. The industry continues to seek ways to improve capital access while navigating the global competitive environment.
