Europe’s push to rival US biotech hubs faces hit from market slump
Rout revives fears of American buyers swooping on the continent’s start-ups.

Europe’s attempt to build more sustainable life-sciences business clusters faces being damaged by a sharp drop in biotech valuations — prompting renewed concerns that US buyers will swoop on European start-ups. A rapid decline in the Nasdaq biotechnology index — down 13 per cent this year amid scientific setbacks and after a pandemic-driven surge — has made it harder for biotech companies worldwide to raise funds. But European companies are particularly affected as they tend to raise money in smaller rounds, leaving them with less of a cash cushion to fall back on.