Europe At A Crossroads: Biotech Investment, Regulation, And Partnership In Real Life

By Daniela Caiazza, Acting Managing Director - Europe, Novotech

Recent conversations among investors, biotech executives, and policy specialists offered a candid view of where European biotechnology stands today and how it may evolve. Europe benefits from strong scientific foundations and ample capital, yet investment behavior remains conservative, favoring lower-risk opportunities and faster returns. As a result, companies are under growing pressure to demonstrate clear clinical strategies, disciplined development plans, and well-defined value inflection points.

Regulatory and access considerations featured prominently, particularly the rollout of the EU’s joint Health Technology Assessment framework. While intended to reduce duplication and improve efficiency over time, early experiences suggest added complexity that sponsors must factor into trial design and evidence planning. At the same time, deal-making norms are shifting, with broader rights and closer collaboration becoming more common, placing greater emphasis on alignment and trust between partners.

China’s established role in global drug development was viewed as both a competitive force and a potential collaborator, expanding options for co-development and multi-regional programs. Participants also emphasized the importance of practical differentiation — balancing first-in-class ambition with best-in-class opportunities — and the impact of limited academic mobility within Europe. Taken together, these perspectives point to a region at a turning point, where thoughtful strategy, execution, and partnership will shape the next phase of biotech growth.