Investing in EU Biotech IP – What Works?

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The research:

The dataset is available upon request

Vital Transformation released its newest research at the European Health Forum Gastein on October 4th, 2018. Our project analysed 116 EU biotech start-ups from the period of 2001 – 2007 through September 21, 2018 from the UK, Netherlands, Belgium, and Spain. We focused on companies developing medicinal products for human consumption. In this work, we compared the impact of IPOs (stock market listings), private investors, and direct EU funding on their success or failure.

Our conclusions were:

  • The total private funding given to a firm (IPO, Private Investment, Licensing) is statistically significant to the firm’s probability of success
  • Initial Public Offerings (Stock Market Listings) do NOT impact the success of EU firms, this may be a reason that mature firms are leaving the EU
  • EU funding given directly to a firm does not impact the success rate of the firm with statistical certainty
  • EU funding given directly to a firm can be predicted with certainty by the total amount of private investments made to a company in BE, NL, and ES, but not the UK. i.e. Private investments predict levels of EU funding
  • “The Market” decides which firms will be successful by allocating resources; actions that impact investor confidence (threats against IPR, attacking market exclusivity) will negatively impact the amount of private money invested and the success of firms

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Press Coverage

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View our most recent webinar where the research is explained and discussed with the consortium partners:
“Investing in EU Biotech IP – What Works?

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