Olivier Favre-Bulle, founder of 3Biotech, shares his insights on the pressures facing the French biotech sector and the opportunities that remain for early-stage companies.
As 2024 comes to a close, it’s clear that this year has been a defining one for the French biotech sector—one marked by both adversity and opportunity. While the industry has faced significant financial challenges, it continues to thrive as a hub of innovation, particularly for early-stage companies eager to make their mark.
A thriving ecosystem under pressure
The French HealthTech ecosystem remains robust, with nearly 60 new biotech startups launched in 2023, bringing the total number of active companies to around 820. These firms now collectively generate over 15,000 direct jobs, solidifying France’s status as a global leader in biotech innovation.
However, the sector is undeniably under pressure. A recent survey by France Biotech revealed that 88% of biotech leaders have been negatively impacted by 2024’s economic and political challenges. Rising inflation and tighter financing conditions have compounded these difficulties, forcing companies and investors alike to adapt their strategies.
The financing dilemma: bridging the gap for early-stage startups
For early-stage biotech startups, securing funding remains one of the sector’s most pressing challenges. Despite France attracting €1.8 billion in biotech investments in 2023, early-stage companies are finding it harder to access the capital they need.
In 2024, 71% of biotech firms sought to raise an average of €15 million, yet investors are increasingly risk-averse, focusing their attention on later-stage projects that have already achieved clinical-phase validation. This leaves early-stage companies with innovative but unproven concepts at a distinct disadvantage.
Bridging this funding gap is essential to maintaining a steady pipeline of breakthrough innovations. On a positive note, new investment models—such as targeted funds like Biovelocita or AndzonBio1— offer tailored support to help nascent companies navigate this challenging landscape.
Positive trends reinforce resilience
Amidst the financial pressures, the French biotech sector has displayed remarkable resilience, driven by a number of promising trends:
Enhanced technology transfer: The professionalism of technology transfer organisations and the rise of multi-project platforms are making the sector even more attractive to investors and innovators alike.
Leadership in rare diseases: France remains Europe’s leader in rare disease innovation, with over 200 drugs currently in development—84% of which have been developed domestically. This leadership reflects the sector’s commitment to niche yet impactful therapeutic areas.
Tax incentives: Financial mechanisms like the Crédit Impôt Recherche (CIR) continue to provide vital support for research and development, helping companies stay competitive on a global stage.
Emerging TechBio opportunities: The rise of AI-driven innovation within TechBio is transforming drug discovery and development processes. By integrating AI and data-driven approaches into their strategies, French biotechs can accelerate R&D timelines while reducing costs.
A unified call to action
To unlock the full potential of the French biotech sector and secure its future success, we must focus on several key areas:
Strengthen financial incentives
Programs such as the Crédit Impôt Recherche (CIR) have proven invaluable, offering the financial flexibility that early-stage biotech companies desperately need. By expanding and enhancing these initiatives, France can lower financial barriers, allowing companies to accelerate their R&D and bring breakthrough therapies to life.
Increase targeted funding
Emerging biotech companies in the preclinical stages face distinct challenges, particularly when it comes to securing funding. While initiatives like Biovelocita play a crucial role in supporting these ventures, much more still needs to be done.
The French government has committed €7.5 billion through the Plan Santé 2030 initiative to bolster health innovation, with a strong focus on biotherapies, digital health, and pandemic preparedness. This initiative aims to streamline regulatory processes and drive industrial growth. Early-stage companies stand to benefit from Plan Santé 2030’s funding for R&D infrastructure, clinical trials, and its commitment to reducing regulatory barriers. Expanding targeted funding will provide the necessary resources for the next wave of biotech innovations, ensuring promising ideas evolve into tangible solutions.
Strengthen international collaborations
To enhance its global competitiveness, France’s biotech sector should focus on building strategic partnerships with renowned biotech hubs such as Silicon Valley and Boston. Collaborative R&D projects and joint ventures could not only attract foreign investment but also open up new markets. Key strategies for engaging in international partnerships include actively participating in global biotech forums and forming alliances with leading research institutions worldwide. By fostering these connections, France can position itself as a more influential player on the global biotech stage.
Building the future together
At 3Biotech, we are committed to transforming today’s challenges into tomorrow’s breakthroughs. The French biotech sector is built on a foundation of scientific excellence, world-class talent, and strong public support. By providing expert consultancy throughout the drug development process— from early-stage strategy to clinical-phase execution—we help startups bridge critical gaps. We offer tailored solutions in regulatory affairs, CMC strategy, and funding navigation, empowering our partners to move forward with confidence.
Through collaboration and innovation, we turn promising ideas into solutions that improve patient outcomes and drive economic growth. To all innovators, entrepreneurs, and researchers: your resilience fuels progress. Together, we can overcome challenges and build a sustainable future for health innovation.
Contact us to learn how we can help you.