At a time when the US is becoming more self-focused, European biotechs must understand and appreciate US culture when seeking funding, an expert panel has said.
At Swiss Biotech Day, which took place on 5–6 May in Basel, Switzerland, a panel of biotech executives and investors discussed ways for European biotechs to better source US funding.
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Investment in biotech has been low since the peak seen in 2021, so finding good partners who will support long-term development is very important. As a result, European biotechs must make sure they are on the same wavelength as their US investment partners if they want to establish and maintain a partnership.
Melanie Rolli, group CEO of the Swiss division of pharma company Helsinn, said that the “hustle” spirit from Americans is something that European companies must better understand, as it will put them in a good position to collaborate with US partners.
“In Germany, it is all about seniority and tenure and waiting until it is your turn to contribute,” Rolli said. “Meanwhile, in the US, you are in a high-performing team environment and it is clear you had a seat at the table, which means you needed to contribute. When you create a structure in the US, either for financing or for operations, you need to embrace the culture and their way of work wholeheartedly, because the speed is different, the attitude is different and it can be incredibly exciting – and it can be incredibly concerning if you are not prepared.”
Rolli added that because of the way European biotechs speak with investors, it can sometimes be unclear what they want from a deal. Presentations from European companies are often too focused on the science, which can confuse investors. She adds, however, that this is not the case with US biotechs.
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By GlobalData“I think in Europe, we are sometimes still a little too coy and too careful. We talk a lot about science, but we don’t tell a story. Investors invest in a story, they invest in science that is translatable, into a commercial asset that really drives return on investment. I think we are a little too careful in Europe,” Rolli added.
Additionally, Rolli said that because European companies wait for the best data, they often miss the window for higher investment into their assets.
Matthias Bodenstedt, CFO of Swiss biopharma MoonLake Immunotherapeutics, agreed with Rolli’s assessment, saying that despite his experience in the sector, even he does not understand what some European biotechs are presenting.
“I am not a PhD, I am not a scientist, but I have spent 15 years in the industry, and if I don’t understand what they are trying to do, how will a VC or a hedge fund?” Bodenstedt said. “You have to be clear about ‘What is it?’ ‘Why does it matter?’ ‘Why does this now mean that you have the next-generation blockbuster drug?’”
Bodenstedt also spoke about the importance of frequently visiting the US as a European biotech to maintain both trust and good relationships with investors, adding he visits around 15 times per year.
“Personal interaction is very important. You need to spend time with the people so that they see what you are doing. You need to build credibility, and you build that by putting out timelines and meeting them. You need to put in the effort and be on the ground. And, yes, that is time-consuming, but it is a necessity,” Bodenstedt said.
Note: Some travel expenses that allowed the Pharmaceutical Technology reporter to attend the Swiss Biotech Day conference were covered by the investment agency Switzerland Global Enterprise.
