Stefan Oelrich, president of Bayer’s pharmaceutical division and newly appointed head of the EU’s pharmaceutical lobby EFPIA, pointed out the urgent need for capital market reform to support biotech development in Europe.
“We need the equivalent of a Nasdaq in Europe where we can raise capital for biotech. Because biotech is not just about government finance,” Oelrich said during a press conference last week.
Launched in 1971, the Nasdaq (originally the National Association of Securities Dealers Automated Quotations) was the world’s first electronic stock market.
Known for its fully electronic trading model, the exchange has historically been attractive to fast-growing sectors, including life science, listing some of the world’s largest tech companies, including Apple, Microsoft, and Google.
Oelrich argued that Europe must urgently develop a similar equity-driven financing ecosystem.
“Today, there is very limited venture capital available, which is largely due to the way we manage equities. We invest our equities not in venture, but elsewhere,” he said.
According to him, the lack of early-stage capital means European biotech innovations often migrate elsewhere — especially to the US, where funding and commercialisation opportunities are more robust.
“The transition from basic research to patented applications tends to follow where the capital is. We must ensure that innovation generated in European universities and research institutions stays in Europe,” he warned.
'Why don’t we do it?'
His remarks came just ahead of the unveiling of the EU’s long-awaited Life Sciences Strategy, which aims to revive Europe's position as a hub for biotech research and development.
The strategy acknowledges that the gap in venture capital investment is widening in Europe. It points to the continent’s fragmented capital markets and heavy reliance on bank loans, which are often limited in volume and duration, as major structural issues.
The strategy also recommends strengthening innovation hubs and integrating them into value chains to better attract private investment.
However, it does not place significant emphasis on completing the EU’s Capital Markets Union (CMU), a key demand from Oelrich.
“This may sound ambitious, but it’s absolutely doable. Interestingly, everyone I talk to recognises the need: So why aren’t we acting on it?” Oelrich asked.
He also suggested that part of Europe's pension and life insurance capital could be redirected toward venture investment if appropriate political frameworks were put in place.
“Inventions can find a market here as it’s not only about a lack of capital in Europe: It’s about how we allocate it. We need to do a better job,” he concluded.
The broader context
The EU’s Capital Markets Union remains incomplete, with progress hindered by regulatory divergence, inconsistent enforcement, and political resistance to deeper integration.
While the CMU does not directly aim to create new stock exchanges, it does support efforts to expand access to capital, particularly for small and medium-sized enterprises (SMEs).
This improved access could encourage the development of specialised or regional exchanges, though the broader goal remains integration rather than fragmentation.
Currently, Europe lacks sector-specific stock exchanges. Major platforms like Euronext, the London Stock Exchange, Deutsche Börse, Nasdaq Nordic, and SIX Swiss Exchange list companies across a wide range of industries.
Instead of dedicated exchanges, sector-focused investment is facilitated through indices such as the STOXX Europe 600 family, which tracks sectors like banking, automotive, and leisure.
Still, for many in the biotech sector, the absence of a specialised capital-raising platform remains a barrier. Whether the EU will — and can — move to address this remains to be seen.
