The funding crisis has hit France's biotech companies hard. France Biotech--the country's professional association for life science companies--is reporting that funding fell by 79 percent in 2008, relative to 2007 (€143 million in 2008 versus €694 million in 2007). Investment in listed companies collapsed a staggering 98 percent to just €12 million, while venture capital investments fell 27 percent to €132 million in 2008. And the situation isn't expected to improve in 2009.
In response to those grim numbers, the group says France's government must support the industry by implementing a stimulus plan that will benefit small biotech companies. France Biotech made several recommendations:
- Double OSEO Innovation's budget for 2009 and a tripling for 2010 (OSEO is a fund that provides financial assistance to small French companies);
- Reform the research tax credit to distribute the credit more evenly between SMBs and larger companies;
- Designate half of the government's Strategic Investment Fund to innovative French SMBs so that they may acquire undervalued foreign companies and technologies;
- Removal the caps on tax-efficient investments in young, innovative companies; and
- Extend the "young innovative company" fiscal status from 8 to 15 years.
"[I]n order to underpin the optimism of our entrepreneurs, we must adopt an aggressive stimulus plan for young, innovative companies," said Philippe Pouletty MD, France Biotech's Chairman, in a statement. "Assuming that they can access finance, today's innovative SMBs will become tomorrow's multinationals and thus constitute an essential driver of strong, sustainable economic growth".
- here's France Biotech's release