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The biotech industry in Europe is in a phase driven by technological advancement, investments, and evolving regulatory frameworks. From the rise of personalized medicine and climate-conscious biotechs to the integration of artificial intelligence in drug discovery, Europe is positioning itself as a key hub in biotech innovation. This article delves into the key biotech trends moving the industry forward in Europe at a time when there lies uncertainty in global policies.
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Biotech trends in Europe: the rise of climate-focused technology
One trend that the biotech industry in Europe has witnessed of late is the move towards climate-focused innovation, according to Annick Verween, head of specialist biotech incubator Biotope by VIB.
“As the effects of climate change become increasingly tangible, we’re seeing researchers and entrepreneurs turn to biotech to build real solutions – not just concepts,” said Verween.
Verween explained that in Europe, data-backed biotech startups are being set up to boost “planetary health.” Take, for instance, Elaniti, a U.K.-based agro-tech company that makes crop predictions from soil biology, which received funding from VIB in March. About 90% of our soils could be degraded by 2050 without immediate intervention, the United Nations Educational, Scientific and Cultural Organization (UNESCO) warned last year. Elaniti seeks to change these statistics by offering actionable insights into the soil microbiome for farmers and agribusinesses.
The startup is leaning on artificial intelligence (AI) and DNA sequencing to decode the microbial composition of soil. This way, farmers can optimize productivity and improve crop yields.
And then, of course, the quiet revolution of blue biotech research and development (R&D) in Europe is ongoing. Blue or marine biotechnology relies on biological material sourced from marine organisms to contribute towards a sustainable economy, according to a report by the European Commission.
The industry generated €327 million ($370.21 million) in gross value added (GVA) – a measure of productivity – in 2022, which is a 19% increase compared to 2021. As for the gross profit, it was €68 million ($77.17 million) in 2022, a 21% jump from 2021.
European biotechs tackle pollution; synthetic biology
Quite a few startups have bagged funding for their projects, like Switzerland-based B’Zeos, which has come up with a way to create packaging material out of seaweed. As more than 400 million tonnes of plastic are produced annually, according to the United Nations (UN) Environment Program, with only 9% recycled, seaweed-based packaging that releases no microplastics into the oceans promotes sustainable living.
Pollution is a major issue that biotechs aim to tackle. And French company Carbios has advocated for a solution involving enzymes to break down plastics to transition to a circular economy, which is a system designed to keep materials in use for as long as possible to dramatically reduce waste. So have European biotechs like Neoplants, situated in Paris, and U-Earth, based in the biotech hub of Milan, centered on curbing pollution.
The French company is doing so by genetically modifying houseplants to absorb pollutants in the air, and U-Earth is tackling the issue of the size of the pollutant particles by capturing contaminants in an air purifier, which contains bacteria that help convert the pollutants into water, carbon dioxide, and base elements.
With sustainability in mind, synthetic biology is getting into its stride. Synthetic biology is a field of science that involves the redesigning of organisms by engineering them for specific purposes such as, to treat diseases, sense environmental changes, mitigate pollution, and to address challenges in agriculture. Verween believes that synthetic biology is gaining momentum in Europe, not just as a research discipline but as a business foundation.
“What lived in academic journals a decade ago is now powering the next generation of biomanufacturing startups, with real market traction,” said Verween.
Organizations like EUSynBioS are mapping all of the synthetic biology research laboratories, institutions, and organizations across Europe. The U.K. takes the lead with more than 10 startups and research labs focused on advancing the field, followed by Germany, Spain, and France.
“Crucially, these developments aren’t happening in isolation. The European Union (EU) is backing biotech with conviction, recognizing its strategic role in industrial decarbonization and food system transition. Initiatives like Boosting Biotech and Biomanufacturing send a clear signal. And at the regional level, we see governments, like Flanders in Belgium, backing VIB since 1995, actively investing in scientific excellence and ecosystem building,” said Verween.
The European Commission has called for an “integrated approach” among member states to stimulate the demand for bio-based products, according to a report published last year. The first step includes training and knowledge sharing to nurture tech transfer, the second is funding, and the third is to design ecosystems through research organizations to actively develop products that represent the EU and enhance sustainability.
A biotech trend to look out for in Europe: AI to speed up drug discovery
Meanwhile, artificial intelligence (AI) is being adopted by the EU in a number of fields including biotech and pharma.
“AI is unlocking new speed and precision across the biotech value chain – from predictive biology to automated screening. What used to take months in the lab can now be explored in days through data,” said Verween.
Last year, 13.5% of enterprises in the EU with 10 or more employees used AI as a tool in the workplace, a 5.5% hike from 2023, according to a report by Eurostat. More specifically in biotech and healthcare, the EU has made plans to build 13 AI gigafactories to catch up with the U.S. and China, where the technology is brimming. The €20 billion ($23 billion) approach is hoped to turn Europe into an ‘AI continent.’ This, coupled with the EU AI Act – the regulatory framework concerning AI in the EU – is part of a wider drive to cut “red tape.”
Presently, the U.S. dominates the field, miles ahead of China and Europe. The region has 40 “notable AI models” compared to 15 in China and three in Europe, according to an AI index report published by Stanford University last year. But with these new schemes in place, Europe wants to take on the competition.
The gigafactories, called moonshots, are meant to create significant contributions to healthcare, biotech, industry, robotics, and scientific discovery. The integration of AI and machine learning into biotech to accelerate drug discovery and development is rising in Europe, according to Dan Goldstaub, pharma executive and scientific co-founder at pharmaceutical manufacturing company PhaseV.
“Fields like target detection and product development will increasingly use AI tools. The growing acceptance of AI technologies will lead to an increase of companies that can provide the tools to companies that have the traditional infrastructure,” said Goldstaub.
Echoing Goldstaub’s thoughts, Vidmantas Šakalys, chief executive officer (CEO) of Vital 3D, a Lithuanian company that leverages bioprinting in personalized medicine, pointed out that AI is increasingly being used in drug development.
“Within our field of bioprinting, there’s a notable rise in precision tissue engineering, regenerative medicine applications, and an emphasis on developing ethical, sustainable, and animal-free solutions. European investors and policymakers are showing increased confidence and support for these advanced technologies, aiming to strengthen Europe’s position in the global biotech landscape,” said Šakalys.
Personalized medicine to change the game in healthcare
As AI unlocks “new speed and precision across the biotech value chain,” according to Verween, it is bound to push the envelope in personalized medicine. When treatments are tailor-made for patients, it avoids the challenges of medicines not being effective in treating large numbers of patients as well as can cut rising healthcare costs due to more prevalent chronic diseases and an ageing population.
More than 30 European members, along with the European Commission, established the International Consortium for Personalised Medicine (ICPerMed) scheme in 2016. IHU PRISM was born out of a collaboration between ICPerMed and Institut Hospitalo-Universitaire – medical training and research centers set up in France – five years ago. With a focus on cancer care, it is the first national center for precision medicine in oncology in France. The initiative has been awarded a €30 million ($34.15 million) grant from the French government and the French National Research Agency (ANR) as part of the FRANCE 2030 plan, which is France’s funding strategy to boost innovation.
As part of the project, patients are a key part of study set-ups and are involved in the design of clinical trials and in developing the methodology for gauging the results, according to Maud Kamal, executive director of the IHU PRISM at the Gustave Roussy Cancer Campus in France. This makes a difference in the way personalized medicines are developed and best suited for patients.
As a result, the European personalized medicine market is expected to grow at a significant compound annual growth rate (CAGR) from 2024 to 2033, contributing to a global market value of $530.11 billion in 2023. This is predicted to hit $1,176.66 billion in eight years, according to a press release by Nova One Advisor.
Funding grants and schemes in the EU to attract startups and foreign researchers
As seen with the IHU PRISM project or any R&D initiative for that matter, funding is a key part of innovation. In Europe, new funding schemes have been created to fuel R&D. Parijat Jain, vice president (VP) of Cell and Gene Therapy of biospecimen provider BioIVT pointed towards the European Medicines Agency’s (EMA’s) PRIME scheme, which supports drug developers who are designing medicines that have a major therapeutic advantage over existing treatments or those that benefit patients with no treatment options.
“The financing for the biotech sector has rebounded with over €5 billion ($5.69 billion) in venture capital (VC) funding in early 2024, particularly in the U.K., Germany, France, and Switzerland. Merger and acquisition (M&A) activity is also rising, with private equity showing renewed interest,” said Jain. “Regulatory bodies across Europe are actively promoting biotech growth through streamlined frameworks like the EU Biotech Act. Together, these trends position Europe as a global leader in biotech innovation and investment.”
The EU Biotech Act seeks to strengthen R&D to “reinforce Europe as a global hub” as well as adopt regulatory pathways to fast-track innovation. Currently, several regulatory barriers exist that startups and scaleups spend a lot of time stressing about. There are different rules for launching and scaling companies across member states in Europe. These regulations vary from country to country, be it about registration, tax compliance, or bankruptcy.
Can Europe overcome regulatory hurdles?
As navigating this can become cumbersome for small and medium-sized enterprises (SMEs), time may be spent figuring out the laws rather than focusing on innovation and growth. That’s why streamlining these processes is important.
The “stringent regulatory system,” as Verween puts it, is necessary to regulate new technologies, “especially when working with microbes and making products that will find their way into the natural environment or even into people’s bodies.” However, this process can take months to even years, eating into the budgets of biotechs.
“I would like to see swift and efficient regulation that can give confidence in the products and processes without causing bureaucratic headaches for biotech companies,” Verween added.
The quest to straighten out the regulatory pathway is part of the EU’s larger scheme – Choose Europe for Science initiative. It was launched this month to attract U.S. researchers and the European Commission has pledged €500 million ($562.78 million) in funding for it.
“We’re starting to see American researchers in different fields, including in biotech, begin to look abroad for a new base to conduct their research. Europe, with its strong academic base, thriving biotech hubs, and high quality of life, is becoming an increasingly attractive landing spot,” said Verween. “This moment presents a real opportunity: to strengthen Europe’s biotech autonomy and welcome global talent into our ecosystems. It’s up to policymakers and investors to lean in, making it easier for scientists to relocate, integrate, and build long-term here.”
The funding grants go hand-in-hand with new R&D schemes amid global uncertainty around policies that threaten innovation and research. Since the Trump administration declared trade tariffs and budget cuts, the mood across the globe has shifted. As it stands now, the 50% import tariffs for the EU have been postponed, but this could change anytime. Verween thinks that the way out is to rethink the supply strategy entirely and “look regionally.”
“The advantages of acquiring equipment, ingredients, and expertise from Europe rather than importing them from further away become more obvious, and we are already seeing them design their processes around regional resources and supply independence. We can only expect to see uncertainty and regionalization continue in the current geopolitical climate,” Verween.
Despite the challenges – which there are quite a few of, such as high manufacturing costs – Goldstaub thinks that Europe is becoming increasingly attractive for companies with its efforts to improve the regulatory tools to launch research and approve products. “With the rapid changes in the U.S. and other regions, Europe may take a larger part of the leadership role,” he added.
Initiatives like the EU Pharmaceutical Strategy claim to address medicine shortages and enhance crisis preparedness. This is what the Critical Medicines Act proposed in March strives to do by encouraging reliable supply chains of critical medicines. Šakalys explained that with more public-private cooperation, robust regional biotech clusters, and more investment, Europe is headed to cutting down on its dependence on external sources.
Furthermore, Europe is likely to further streamline its regulatory processes to speed up innovation and increase resilience in the sector.
Šakalys said: “In the future, we expect even stronger European coordination around innovation funding and regulatory harmonization, enhancing the continent’s competitiveness.”
The power of AI in antibody discovery
