spacer
home > ebr > summer 2007 > beating the catch-22
PUBLICATIONS
European Biopharmaceutical Review

Beating the Catch-22

Sandrine Cailleteau at Plethora Solutions looks to a number of European biotech companies for examples of innovative partnership strategies and asks what will it take to catch up with the US?

Today’s pharmaceutical industry is bearing witness to an emerging continental divide as the market growth of European-based companies continues to fall short of their US counterparts. This is particularly relevant among early-stage European life science companies, which often struggle to find the financial resources necessary to diversify their businesses, leaving them reliant on limited start-up funds and narrow pipelines, as innovative as they may be. Investors instintively perceive these European players as high-risk options that require significant long-term investments to see their targeted returns and hence are slow to engage in larger financial commitments. This creates a catch-22 scenario for these companies, as the limited size of their current portfolios hinders their own ability to expand. When combined with still fragmented markets, these cash constraints limit the opportunities for European biotechs to prove their business models and demonstrate returns on investment.

In this environment, it has become clear that the era of the ‘one big idea’ model has come to a close, and that the growth of such companies is difficult to sustain. In an effort to overcome this challenge of obtaining the necessary funds for development, many companies have adopted a number of atypical business development models. Although one could argue that there are as many new models in existence as there are biotechs in Europe, most share a common set of key features, including a growing reliance on partnerships, a concentrated therapeutic focus and a greater openness towards mergers and acquisitions – both within the US and Europe.

PARTNERING IS THE NEW IPO

One of the most common methods for small- and mid-size biotechs to quickly raise capital is still to enter a public market as a traded company. Public listing provides European biotechs with an alternative to venture funding, enabling them to raise liquid capital. They can also use such funding to implement more creative M&A transactions that include payments with shares. Nevertheless, the amounts raised remain smaller than those achieved by US companies. European secondary/alternative markets are still too fragmented and their investors more conservative than in the US.


Read full article from PDF >>

Rate this article You must be a member of the site to make a vote.  
Average rating:
0
     

There are no comments in regards to this article.

spacer
Sandrine Cailleteau brings more than 15 years’ experience in strategic planning and licensing, joining Plethora Solutions from Laboratoires Fournier where she was Head of Global Business Development and Licensing. Before working at Laboratoires Fournier, Sandrine was Director of Strategic Planning and Partnerships of Hesperion, now part of Cerep. Prior to that, she spent 10 years with Sanofi, and then Sanofi-Synthelabo in different positions, the most recent being Licensing Project Director at the Paris headquarters. Her other roles at Sanofi included Manager Investor Relations, M&A and Strategic Planning Manager, where she was responsible for both acquisitions and divestitures, and Public Affairs, where she spent three years in Washington DC, representing Sanofi with international organisations and notably the World Bank.
spacer
Sandrine Cailleteau
spacer
spacer
Print this page
Send to a friend
Privacy statement
News and Press Releases

Arcis Biotechnology appointments Professor Steve Howell as Non-Executive Chairman

Daresbury, UK, 24 July 2019: Arcis Biotechnology (“Arcis”), the nucleic acid sample preparation solution provider, today announced it has appointed Professor Steve Howell as Non-Executive Chairman of its Board of Directors. Steve takes over the position from Paul Foulger, who was serving as Chairman on an interim basis on behalf of the Board.
More info >>

White Papers

Another Successful Visit Against the Odds

Medical Research Network (MRN) Limited

Our dedicated team of nurses, couriers and project managers deliver, come rain or shine. Making sure a Clinical Trial visit can go ahead in the home can be a complex process, and last month bad weather nearly stopped play on an important Home Trial Support visit. Thanks to the commitment and dedication from the entire team it went ahead against the odds.
More info >>

 
Industry Events

CPhI Worldwide

5-7 November 2019, Frankfurt, Germany

Join the World's Largest Pharma Event As it Celebrates its 30th Anniversary! Taking place from 5-7 November 2019 in Frankfurt, Germany, the event will bring together more than 45,000 visiting pharma professionals from around the globe and over 2,500 exhibiting pharma companies from every stage of the pharmaceutical supply chain - from ingredients and machinery to outsourcing services, packaging and more!
More info >>

 

 

©2000-2011 Samedan Ltd.
Add to favourites

Print this page

Send to a friend
Privacy statement