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.
### The Context of Biotech Investment
At Swiss Biotech Day, held on May 5–6 in Basel, Switzerland, a panel of biotech executives and investors discussed strategies for European biotechs to secure US funding. The landscape of biotech investment has shifted significantly since its peak in 2021, making it crucial for European companies to find reliable partners who are committed to long-term development.
### Understanding Cultural Differences
Melanie Rolli, group CEO of the Swiss division of Helsinn, emphasized the importance of grasping the “hustle” mentality prevalent in American business culture. She noted that European companies often operate under a different set of norms, where seniority and tenure play a significant role. In contrast, the US environment fosters high-performing teams where every member is expected to contribute actively.
> “In Germany, it is all about seniority and tenure and waiting until it is your turn to contribute,” Rolli explained. “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.”
This cultural disparity can lead to misunderstandings if European biotechs do not adapt their approach when engaging with US investors.
### The Importance of Clear Communication
Rolli pointed out that European companies often focus heavily on the scientific aspects of their presentations, which can obscure their core message. This tendency to prioritize data over storytelling can leave investors confused about what the company is truly offering.
> “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,” she said. “Investors invest in a story, they invest in science that is translatable into a commercial asset that really drives return on investment.”
This narrative gap can hinder European biotechs from effectively communicating their value propositions to potential investors.
### Timing and Opportunity
Another critical point raised was the tendency of European companies to wait for the best data before approaching investors. While thoroughness is important, this caution can result in missed opportunities for securing investment at crucial stages of development.
### Bridging the Gap: Personal Engagement
Matthias Bodenstedt, CFO of MoonLake Immunotherapeutics, echoed Rolli’s sentiments, noting that even seasoned professionals can struggle to grasp the presentations of some European biotechs. He stressed the necessity of clarity in communication, urging companies to articulate their value propositions succinctly.
> “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 asked. “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 highlighted the importance of maintaining personal relationships with US investors. He shared that he visits the US around 15 times a year to foster trust and credibility.
> “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,” he advised.
### The Necessity of Adaptation
The insights shared at Swiss Biotech Day underscore the need for European biotechs to adapt their strategies when seeking US investment. Understanding cultural nuances, improving communication, and prioritizing personal engagement can significantly enhance their chances of success in a competitive landscape.
By embracing these changes, European companies can position themselves more favorably in the eyes of US investors, paving the way for fruitful partnerships that drive innovation and growth in the biotech sector.
