French biotechnology a sector in need of new growth solutions

The biotechnology industry in France is a dynamic sector mainly made up of small structures, but companies are struggling to finance themselves and attain mid-cap status, according to the results of the 10th Life Science Panorama for 2011 report compiled by trade group France Biotech in partnership with Ernst & Young and released this week.

The Panorama highlights the maturity threshold attained by the life science industry, equivalent to that of the pharmaceutical industry thanks to a wide variety of highly sought-after products. It also focuses on the first acquisitions of foreign companies by French companies and the first takeovers of listed French companies. In this time of crisis, France has clearly demonstrated the momentum of this sector, but will it run the risk of decline in the years to come due to reduced financing?

“In spite of the difficult period we are going through, our sector is proving its vitality. Its turnover is continuing to increase significantly and it is entering into partnerships with high potential. Will venture capital, which remains THE source of financing for the expansion of our industry, be able to meet the needs of the sector, taking into account the unprecedented drop in financing observed in 2011? The capital strength of our companies will be the fundamental means of support for growth, so that we may continue to take on staff, innovate and post solid performances. France Biotech has warned the government about the impact of the innovation grant reforms, which have blocked the path of many of our fast-developing companies, and may continue to do so. Each SME in our sector is a large company in the making. France Biotech will continue battling to get the Government to review its standpoint on the recent reforms and will remain vigilant as regards future reforms,” stated Andre Choulika, chairman of France Biotech.