Nowhere is this need for size greater than in Europe, says the report. Despite the successful year, Europe's biotech industry is still very much secondary to that of the US, which has been flooded with new capital. As a result, the US biotech industry is pulling further away from Europe. Its vastly superior resources mean that US companies stand a greater chance of dominating their chosen niche within the sector. Companies must, therefore, collaborate to put all the pieces of the jigsaw in place, and diversify risk.
Alliances are the lifeblood of the biotech sector more than almost any other industry.
It is clear, however, that mergers and acquisitions are at least as important to European biotech's future. This is an industry that is characterised by huge resource demands. In general, the more resources a company can command by virtue of its size, the quicker it can stake out a leadership position. Second place is rarely good enough in this industry. If the attainment of critical mass is to be one of European biotech's primary goals in the coming years, the report also asserts that it needs fertile soil in which to grow.