Biotech sector demands better access to bank loans and more efficient government relations
<p>Biocat and the PCB held a meeting that brought companies together with Catalan congresswoman Imma Riera</p>

The impact of measures to curb drug spending, difficulties in securing bank loans, and the importance of making Catalonia attractive to the international business sector were among the main topics companies from the biotechnology sector debated with Catalan congresswoman Imma Riera at a work breakfast organized by Biocat and the Barcelona Science Park (PCB) on 21 November.
At the event, Imma Riera (congresswoman for CiU, spokesperson for the Commission of Industry, Energy and Tourism, R&D&i spokesperson and deputy spokesperson for the Economy to the Spanish Parliament) spoke about the changes in R&D&i arising from the Tax Reform that will have an impact, both directly and indirectly, on the sector and its companies, particularly those working in biotechnology. “To help grow the biotechnology sector, we must improve the current tax system and come up with tools to help companies and organizations in the sector find funding, as they currently have significant debt levels,” said Imma Riera.
Catalonia has a strong business sector, a successful research model and a highly consolidated pharma sector. According to Imma Riera, these three key focal points are where we must work to improve the biotechnology sector.
At the event, participants debated topics regarding the sector and the main problems that affect it, especially those related to finance and taxes. One of these problems is the application of measures to curb drug spending, which has affected pharmaceutical companies’ ability to invest in internal R&D and collaboration projects with SMEs.
Another concern companies in the life sciences sector voiced is “the need to improve mechanisms and eliminate barriers” in relations with the government, as Biocat and PCB CEO Montserrat Vendrell indicated. A global view to make Catalonia attractive to the global business sector is needed, debate participants said. It is necessary to make the current system more effective and that doesn’t necessarily entail spending. It implies simplifying processes and aligning discourses, cutting the red tape companies often get mired in and clarifying decision-making channels.
The companies also highlighted the difficulties in securing bank loans, even those specifically designed to promote R&D&i. They demanded the Government of Catalonia find a way to ensure that the money financial institutions received in bailouts goes at least in part to loans. Moreover, they showed the importance of differentiating between companies depending on their needs, size and degree of development; because not all companies are the same, nor do they operate in the same way. Regarding this topic, congresswoman Imma Riera pointed out that Catalonia must move towards a non-banking finance system (MAP, business angels, etc.).
However the event dealt not only with the hurdles facing the sector, but also the new opportunities available. Large pharmaceutical companies need projects to develop, but in many cases they don’t have their own pipeline. Therefore there are many opportunities for small biotech companies in early stage research.