Epoch 43: Reigniting European Leadership in Life Sciences

A Blueprint for Competitiveness

Hello Avatar! Welcome back for another week of biotech analysis. Today is Sunday, which means this is our Building Biotech newsletter that is focused on discussing biopharma strategy topics. For the next two weeks, we’re shifting our focus to geography—specifically, what’s happening in the EU. Europe is home to some incredible science and has seen a number of exciting biotech success stories in recent years. However, the biotech landscape in Europe is markedly different from that of its Western counterparts. Today, we’ll dive into why this is and explore what’s being done to foster innovation and support the growth of biotech in Europe.

If you're not subbed yet click the link below.  Every Thursday we are out with our FREE public/private biotech market update. Sundays are the days we focus on forward looking strategy.  Monday’s are for public equity research.  Tomorrow we will focus on Lexicon Pharmaceuticals (LXRX) which is approaching a key inflection point. On Halloween there is an Adcom scheduled to discuss potential approval for Zynquista (sotagliflozin) as an adjunct to insulin therapy for glycemic control in adults with type 1 diabetes and chronic kidney disease (CKD). With investor anticipation building and the market bracing for potential swings (+/- 80%), all eyes are on Lexicon.

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Enough shilling for the day, lots to cover this week, let's get started!

A Moment of Political and Scientific Change in Europe

Across Europe we are witnessing a number of significant political shifts (e.g., Brexit, France, Italy, Germany, etc). The life sciences sector is one of the EU’s most crucial strategic assets, responsible for 20% of global research spending and directly employing around 900,000 people across Europe. Furthermore, the sector indirectly generates 2.5 million jobs, making it a vital contributor to both the health and economic security of the region.

In recent decades, Europe has seen transformative medical progress. Despite these advances, Europe’s life sciences ecosystem faces intense pressure from rising global competitors, particularly from the US and China, who have adopted more ambitious and dedicated strategies.

Over the past two decades, 25% of Europe’s share of global R&D investment has been redistributed to other regions. European biotech firms can only access 20% of the capital available to their US counterparts, and three-quarters of Europe’s science graduates opt to remain in the US after completing their doctorates.

Today we explore challenges and potential solutions for Europe’s life sciences sector.