France’s quickly expanding life sciences industry continues to improve the environment of bioclusters, tax credits and exemptions and a dynamic investment climate. French government and biotech industry are working together to maintain and strengthen the attractiveness of France in the life sciences area.
France has created a series of bio-related industrial clusters to leverage synergies between higher education and both private and public research. The $1.8 billion in governmental support until 2008 represents the latest in France’s ongoing efforts to foster Europe’s most dynamic and welcoming biotech environment.
Over the past three years, France has been implementing new tax credits and exemptions specifically targeting innovative industries such as biotech. Having already put into place what many considered to be Europe’s most aggressive R&D tax credit system in 2004, the decision was taken in 2006 to increase the level of deductions to cover 10% of total R&D expenditures plus 40% of the year-to-year increase, with an upper limit of €16 million.
To encourage research-driven startups, France now grants them tax-free status for their first eight years of operation, including exemption from paying local and income taxes as well as national social charges. Qualifying companies must be independent, less than 8-years-old and devote more than 15% of their total annual expenditures to R&D. Since 2004, 1,600 have taken advantage of this program. This model is now lobbied at European levels.
France’s bio sector is on the move with new companies emerging almost every day thanks to a nurturing environment for innovation and increasing access to capital. 2006 was a record year for IPOs and SPOs, such as ExonHit, NicOx, Transgene, Genfit, Innate Pharma. With nearly 400 biotechnology companies and a worforce around 20,000 people, France ranks third in Europe for the number of companies operating in this industry.
French and international biotech companies are also eligible to benefit from support from the newly created Industrial Innovation Agency which provides funding for research-driven businesses – that in addition to the almost €18 billion in European Union life sciences funding accessible by companies doing work in France.
Producing 40% of all drugs manufactured in Europe and the world’s fourth-largest drug market, France is home to a powerful bio-pharmaceutical industry. World industry leaders, big and small, are drawn to its highly-skilled workforce. France is home to more than 22,000 academic researchers supported by a public budget of €2.3 billion. France has the fastest and cheapest European clinical trial system.
About a hundred bio-medicines have been on the market in 2006. This is an exponential rise, as half of these were put on the market within the last five years.
France enjoys the second-lowest clinical trial costs in the EU, far lower than those in the U.K., Germany or the U.S. and France is home to Europe’s top fast track system for clinical trials, making companies’ time to market the shortest and most efficient possible.
French success may also be linked to the regulation of Rx environment in France: unique regulatory body, reduced marketing costs, reduced judicial risk…
Last but not least, companies can take advantage of not only these new French incentives but also the new regulation implemented by the European Medicines Agency (EMEA) to encourage small and medium-sized enterprises (SMEs) to submit NDA & BLA: significant fee reductions, administrative assistance and the establishment of a dedicated SME Office to provide a ‘one-stop shop’ for SMEs to learn about and apply for incentives.
France is ready to welcome your next biotech venture. For information, visit www.firmafrance.com or e-mail info@investinfrance.org
Sources: Ministry of Economy, Finance, and Industry; Ministry of Research; France Biotech