Bleak market will slam European research efforts

One of the great pioneers of the British biotech industry, Sir Chris Evans, is fretting that turmoil in the public markets will have a particularly harsh affect on drug discovery work in Europe. With too few successful development programs, biotech is seen as far too risky by investors, says Evans, who started Enzymatix, one of the U.K.'s first biotech start-ups. Now, even as the Prime Minister vows to make the U.K. a world leader in genetics and stem cell research, Evans says the subprime credit crisis will drive investors away from biotechnology as they seek safe havens for their money.

The article notes that the numbers look bad for European biotech. Investment in the sector has plunged over the past four years, and 1,400 private biotechs on the continent lose a collective £2.5 billion a year. Half of those companies have less than one year's amount of needed capital.

"It is a perilous time for U.K. biotech," says Evans in a discussion with the Telegraph. "This 2008 market is going to be unforgiving."

- check out the report from the Telegraph

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