www.czu.cz ; www.usab-tm.ro ; www.raupp.info

A comprehensive study comparing the biotech industry across some fifteen
European nations and the USA presented at the World Life Sciences Forum
BioVision, Lyon. For the first time, the study uses a single definition of
biotech which is consistently applied across all countries to permit true
comparability between nations, April 2005.

The figures reveal that while Europe and US have the same number of
companies, the US biotechnology industry employs twice as many people,
spends almost three times as much on research and development, raises 3 or 4
times as much venture capital, and has access to 4 times as much debt
finance. In Europe, however, more new companies are established.

?Europe starts a lot of biotech companies, but they need to be muscular
enough to compete internationally,? says John Hodgson, Director of Critical
I, a specialist biotechnology consultancy.

The report develops the idea of the Elite European Company. These companies
are relatively large, still growing, and continuing to invest in
value-creating R&D. ?Elite European Companies can compete against US firms
for finance, personnel, and deals. The problem is, there simply aren?t
enough of them.? says Hodgson.

The study includes a profile of the biotechnology sectors in each of the 15
countries covered as well as what a typical company looks like.

According to the study the financing gap is probably the biggest barrier for
European biotech industry, particularly the lack of suitable financial
infrastructure later in the business cycle. Thus, many companies collapse
after 3 to 5 years.

?It is crucial that the European Union e.g. EIB and EIF reconsider how they
stimulate the market to invest in innovation,? says Johan Vanhemelrijck,
Secretary General, EuropaBio.

EuropaBio is also calling for harmonisation of financial rules across Europe
and welcomes the single prospectus directive as a good step forward. The
industry considers that harmonised securities markets and a special fiscal
status for Young Listed Companies will help get more funds to biotech
companies.

According to Feike Sijbesma, Chairman of EuropaBio: ?Europe also needs
coherence of policies to stimulate investment and help Europe?s high growth
potential companies to flourish and compete internationally?.

For further information, visit: [www.europabio.org]

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