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EU Biotech Financing Gap Addressed at Parliament

Policymakers and industry leaders met to discuss capital reforms aimed at retaining life sciences firms in Europe.

Updated on Sept. 30, 2026 in Biotech

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European policymakers and biotech leaders gathered in Brussels to discuss urgent reforms to close the region's multibillion-euro equity financing gap. AI Illustration. Upload story photo >

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EuropaBio and BioPharmaChem Ireland hosted a meeting at the European Parliament to address a significant structural gap in biotechnology financing. Participants reviewed policy initiatives aimed at implementing Mario Draghi's competitiveness agenda.

Why it matters

The event sought to address why nearly all EU biotechnology firms that went public recently chose foreign stock exchanges. Improving domestic capital access is seen as essential to retaining high-growth life sciences companies within Europe.

Data shows an annual IP-backed growth financing gap of up to €18 billion for EU firms. Additionally, aligning pension fund venture allocations with international benchmarks could potentially unlock over €15 billion in new capital.

The players

Regina Doherty

She is a Member of the European Parliament who hosted the Draghi Needs Friends meeting.

EuropaBio

This is an industry association that represents the European biotechnology sector.

BioPharmaChem Ireland

This is a representative body for the Irish biopharmaceutical and chemical industry.

European Commission

This is the executive branch of the European Union responsible for proposing legislation and policy implementation.

Mario Draghi

He is a former President of the European Central Bank who developed the competitiveness agenda discussed by participants.

The details

The meeting convened founders, investors, and European Commission representatives to discuss the impact of the Biotech Act, EU Inc., and the European Innovation Act. Participants analyzed why Irish scaling biopharma companies face a specific €1.1 billion equity financing gap that limits their ability to grow domestically.

Timeline

  1. September 30, 2026: The event was held at the European Parliament in Brussels.

  2. 2020-2026: 66 of 67 EU biotechnology companies that went public chose to list on non-EU exchanges.

The Tech Race

This meeting highlights a push to integrate the European capital market in alignment with the Savings and Investments Union to boost innovation. By formalizing these reforms, the EU aims to replace fragmented national listing practices with a unified system to compete with international exchanges.

For investors and biotech professionals, these potential capital market reforms could lead to more domestic funding options for scaling companies. If successful, these changes may reduce the reliance of European firms on foreign capital and expand the local availability of public equity investments.

The takeaway

Retaining innovative life sciences companies requires a structural transformation of how Europe manages its growth capital. Policymakers and industry stakeholders are now looking to bridge the divide between local pension fund allocations and international investment benchmarks.

What happens next

European policymakers intend to complete the Savings and Investments Union framework to increase capital for innovation, though specific legislative deadlines for final adoption remain pending.

Further reading

Learn more about the latest industry trends in the Biotech section.

Source note: This article includes information reported by Europabio - Europabio.

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