The first European Advanced Therapies Investor Day began with the sound of  the “opening bell” of the Euronext stock market (Brussels) resonating the potential of the rapidly expanding sector of advanced therapies. Watch ceremony

For the first time in Europe, the Advanced Therapies Investor Day provided a unique opportunity for leading European companies specialized in this rapidly evolving sector to meet with investors, brokers, analysts and journalists to showcase the latest trends, developments and potential of advanced therapies (cell-, tissue-, and gene-based) and future investment strategies. The meeting allowed exclusive access to the sector’s top European stakeholders providing face-to-face meetings and press interviews with major players in the field. Eduardo Bravo, Chair of the Alliance for Advanced Therapies and CEO of TiGenix, opened the European stock markets of Euronext N.V., a wholly owned subsidiary of Intercontinental Exchange Group, Inc. (NYSE: ICE), by sounding the opening bell on the occasion.
Presentations offer overview of strategic and financial trends
A morning session provided comprehensive overview of strategic and financial trends in European advanced therapies beginning with keynote presentations that showcased: recent financial and strategic developments in advanced therapies; an overview of the most important advances in the field and future developments; and an understanding of the latest investment trends and opportunities in Europe. In addition, 10 to 12 of the most important developing European companies in advanced therapies gave presentations providing exclusive insights on their latest technology and development progress. Among the companies present: Actogenix, ATMI, Bone Therapeutics, Cardio3 Biosciences, Cell2B, Kiadis, Promethera Biosciences, Reneuron, TiGenix and TxCell.

Alliance for Advanced Therapies conducts a survey 

A survey carried out by the Alliance for Advanced Therapies that engaged 40 European companies active in advanced therapies revealed that trending is toward investment and development of innovative cell-, tissue-, and gene-related therapies.

What the survey revealed:

• over one third of the companies devoted to the development of advanced therapies have been created within the last 5 years.

• Two of the four of the advanced therapies approved to date in Europe have been developed by Europe-based SMEs.

• 25% of the products in development are in phase III clinical trials (last stage of clinical development).

The survey also disclosed that these companies are part of an emerging new industrial sector of small and medium size enterprises (SMEs) that represent an average of 30 employees and have spent roughly €6 million in R&D activities during 2012.

Eric Halioua, Chair of the Finance Committee at the Alliance for Advanced Therapies and CEO and co-founder of Promethera Biosciences explains, “Despite their size and their very limited R&D investments compared to big biopharmaceutical groups, European SMEs can be extremely effective. Two of the four advanced therapies approved to date in Europe have been developed by Europe-based SMEs. Our survey shows a surge in the number of products in clinical development and 25% of the products in development are in phase III clinical trials (the last stage of clinical development). Interestingly, we see an increasing number of big biopharmaceutical companies now partnering with, or acquiring these companies, or investing internally to develop their own pipeline of advanced therapies products”.

Access to capital a “must” for company development

With regard to capital access, Europe is trailing well behind the US. Since the beginning of 2013[AJ1]  only 3 European biotech companies have gone public (one to the US rather than the EU market), compared to 36 US companies that debuted on American exchanges in the same timeframe. However there are some differences worth noting: each of the European firms that went public had compounds in late-stage development when staging their IPO whilst only a minority of the US companies making an IPO this year was in the same position. In other words, there were fewer companies and they had to wait longer before entering the public market.

“European companies heavily rely on public funding in their start-up and early development phases but when their lead product reaches the clinical testing stage, particularly when large clinical trials should start, the search for venture funding becomes critical for their survival,” said Eduardo Bravo, adding, “Equity is the most effective financing tool to grow SMEs but the financial crisis has provoked a sharp decrease in Europe’s venture funding capital community and a significant reduction in the number of specialized investors. There is a need for more mechanisms such as fund-of-funds in Europe, to channel capital to successful venture teams or fiscal incentives for investors in public SMEs”.

In an aim to discuss the latest developments, trends and potential of these new drugs alongside the investment strategies the Advanced Therapies Investor Day has reflected to investors a brand new showcase within the dynamic landscape of advanced therapies development. 

Sources:

http://www.allianceat.org/index.asp?mm=19

http://www.ala.com/article.php?id=314