EUCOPE and FTI Consulting EU Unveil New Report on Life Sciences Investment in the EU

Brussels, 15 November 2023

Today, EUCOPE and FTI Consulting EU published a report titled The Economic Lens: Understanding What Makes the EU Attractive for Life Sciences Investments.

The report provides an analysis of the current environment in the EU for attracting life sciences investments and examining the potential influence of the General Pharmaceutical Legislation on investors’ confidence and industry growth.

The launch event, held on 14 November 2024, gathered key industry leaders, policymakers, and stakeholders. MEP Stine Bosse, Vice-Chair of the Subcommittee on Public Health (SANT), shared insights into the policy perspectives surrounding life sciences investments in the EU. She stated:

“It’s clear that we need to do something quite quickly, because Europe is falling behind and has been for the past 10-15 years. We have the brains in Europe but something is still not good enough. So I see it as a very important part of my role as an MEP to make sure we have the right prerequisites for our startups and businesses.”

Alexander Natz, Secretary General of EUCOPE, highlighted the critical juncture the innovative industry finds itself at in the EU. The co-legislators are working diligently, and Dr Natz noted that balanced, forward-looking policies are essential to sustain the EU’s competitive position. He declared:

“Investors see the EU as a highly attractive environment for early-stage investments in science, largely thanks to its world-class academic research and a robust culture of innovation. However, our report highlights a critical gap: the EU is falling behind the US in the late-stage development, including in the area of rare diseases. The proposed General Pharmaceutical Legislation adds layers of uncertainty, creating barriers that risk delaying the entry of innovative therapies into the EU market. We strongly encourage EU policymakers to adopt holistic and forward-looking strategies that enhance EU competitiveness and foster a thriving pharmaceutical ecosystem in the EU.”

Key Findings from the Report

The report provides important insights on the EU investment landscape:

• Investors consider the EU as attractive for early stage investments in promising science due in large part do the world class academic research and innovation.
• The existing EU’s regulatory system for orphan medicinal products (OMPs) is seen as favorable.
• For life sciences investors in the EU, regulatory and incentives’ predictability—especially concerning OMPs—is paramount. A number of the proposals in the General Pharmaceutical Legislation risk undermining the predictability of the current system and impacting investment decisions.
• Limited availability and access to capital in the EU remains a major barrier to investment in later stage clinical programmes. The availability of capital has implications for how launches are determined and growth of the companies.

Recommendations to Enhance the EU’s Attractiveness for Life Sciences Investments

To maintain and enhance the EU’s position in the global life sciences sector, the report recommends, among other proposals, that policymakers:

• Invest in education, STEM research, and public universities to drive innovation and support start-up creation.
• Ensure regulatory predictability by maintaining existing incentive levels, recognising that OMP investments inherently bear higher risks compared to larger therapy areas.
• Prioritise resources for an agile and well-supported European Medicines Agency (EMA), which remains crucial for investor confidence.

A Critical Crossroads for the EU’s Innovative Pharmaceutical Industry

As global competition in the life sciences sector intensifies, the EU faces a pivotal moment. Decisions made in the new European Commission mandate will be instrumental in preserving the EU’s innovation landscape and ensuring patient access to advanced treatments. Small and mid-sized companies, which drive substantial advancements in medical research, play a vital role in this ecosystem. EUCOPE published a letter, co-signed by 25 members, in September 2024, outlining the industry’s reflections on how to create a competitive and attractive pharmaceutical ecosystem.

Download the report here

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