2024-10-03 11:50:00
The cash flow of French biotechs reaches alert level! While the overall situation is unfavorable, funds are struggling to find room for maneuver and invest in new projects. The political climate is also weighing on the sector with the fear of seeing the research tax credit cut. “If the research tax credit were to disappear, it would be a pure catastrophe for French companies”warns Pierre Courteille, business development director of Abivax. In this context, should we fear running out of fuel for French biotechs?
A model to refine
While the year was still marked by major failures, like that of Acticor or Aelis Farma, the life sciences sector remains on the lookout for resounding successes, capable of be examples and also restart the IPO machine, which is at a standstill in 2023 as well as in 2024. While waiting for better days, biotechs can think about working on themselves and improving, for example, their governance. This is the hobby horse of Elsy Boglioli, CEO of BioUp who explains to us the importance of “having a strong board of directors to support the management of biotechs”.
Successes, despite everything
However, there are grounds for hope. In a troubled year, certain biotechs stood out, such as Amolyt Pharma bought by AstraZeneca. Another agreement that will have marked the year, the partnership between TreeFrog and Vertex at a potential $780 million or the development of the Montpellier biotech Medincell, which signed with AbbVie last spring. Something to reassure yourself while waiting for better days for the sector in 2025.
A clearing in 2025?
Despite these difficult times for treasuries, players in the sector remain optimistic. A large majority of 60% of entrepreneurs surveyed by France Biotech are in this state of mind. With the planned drop in interest rates, funds could once again be able to finance. And above all, pharma has never needed innovation so much. With a need to constantly renew their pipelines, the big pharma cannot do without a biotech sector, which is risky, but essential to boost innovation.
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