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French Health Tech France Biotech French health tech France Biotech Created in 1997, France Biotech is a French non-for-profit organization that brings together the country’s leading innovative health companies and their expert partners. France Biotech’s primary mission is to support the development of this industry in France, by improving the tax, legal, regulatory and managerial environment in which these companies operate and by advocating for their recognition as a leading-edge industry. France Biotech also aims to turn French innovative health technologies into world leaders. The organization, which championed the creation of the French Young Innovative Company (JEI) status in 2004, develops a wide range of actions intended to set the innovative health sector on an independent and high- performance course. France Biotech is chaired by Maryvonne Hiance and has more than 200 members. For more information, please visit www.france-biotech.fr The Boston Consulting Group (BCG) The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with more than 90 offices in 50 countries. For more information, please visit bcg.com French health tech NOVEMBER 2017 Summary Health Tech: a major revolution in the next Economic consequences will be substantial: French decade health techs could generate an annual turnover of €40 billion and 130,000 additional jobs by 2030. Hence, The health care sector will experience a major 1.7% of the labor force could work in the health care transformation in the years to come: a new wave of sector by 2030 – and meet the needs of a significant technological innovations will soon make it possible global market, with strong demand in the long term to treat incurable diseases, improve the daily life of outlook. patients affected with disabling pathologies, and increase life expectancy. This health tech revolution is fed by multiple disruptive France has many of the assets required to innovations coming from biotech, medtech, and digital become a health tech leader tech. In France, and all over the world, thousands of France has many of the assets required to emerge as a companies are exploring new therapies that relying European and global epicenter of health tech. on technological breakthroughs in the biology sector (immunotherapy, cellular therapy, DNA sequencing The country has an excellent reputation for scientific and editing), advances in terms of medical equipment research. France is fourth in the global ranking of (surgical robots, medical imaging, diagnostic tools, nations for Nobel Prizes, and second for Fields Medals nanotechnologies), and multiple digital innovations (mathematics). Its research institutes are already (Big Data, the Internet of Things, 3D printing). renowned: France is the only country other than the United States that is ranked in the global top 10 for These health tech innovations will help adress the health care research centers, with two institutions: global health care challenges of the next decade. INSERM and AP-HP. Cancer, which already accounts for one in six deaths worldwide, will reach 233 million new cases by 2030. France also benefits from one of the best health care Over the same period, the two-year increase in life systems in the world, and from public hospitals open expectancy in developed countries will reinforce the to innovation. By integrating research, teaching, and importance of a healthy lifestyle. Furthermore, 7,000 treatments within academic hospitals, France has orphan diseases remain, for which there are yet no – or built a quality national network. This is a real asset for too few – appropriate treatments. health techs from the perspective of clinical research or market access. Health techs will facilitate the advent of a personalized, preventive, and predictive medicine, and will play a Finally, another of France’s advantages is the numerous major role in improving the health care pathway and public funding systems for innovative companies. With access to treatment. Last, but not least, more efficient tax credits for research (CIR), participation from the therapies will enable us to better control health care public investment bank Bpifrance, benefits from the costs by decreasing hospitalization durations and side Young Innovative Company status (JEI), and availability effects. of public investment programs (PIA), France has the most generous aid programs for innovative startups in the world. France: the next global health tech hub? In light of its scientific and clinical excellence, its Today, France has exceptional dynamics in terms public support for innovation in health tech, and its of health tech, with more than 600 companies well exceptional entrepreneurial dynamics and promising positioned in the health care innovation sector. The top pipeline, France definitely has a place on the next 20 among them are developing promising products that global hub for health tech – one that has the potential could eventually affect 250 million patients worldwide to deliver paradigm-shifting treatments to patients, as (11 million in France). well as strong economic impact in the years to come. FRENCH HEALTH TECH 5 THE FRENCH HEALTH TECH, A SIGNIFICANT SOCIETAL & ECONOMICAL POTENTIAL FOCUS A MAJOR CONTRIBUTION TO GLOBAL PUBLIC HEALTH CHALLENGES Treat incurable diseases Improve access to treatments 250M Manage the quality and cost of the Improve quality of life for patients health care system Number of patients (millions) that the 20 most promising French Health Techs companies could treat A PROMISE TO DELIVER STRONG ECONOMIC IMPACT Number of jobs that could be created by the health tech sector by 2030, raising the Annual turnover health techs could +130k health care sector to 1.7% of the French €40 B generate in 2030 labor force 3 REASONS TO BE OPTIMISTIC FOR THE FUTURE More products being developed at French biotechs as compared with the four largest national pharma players (Sanofi, x 2.4 Pierre Fabre, Servier, Ipsen) 6th France’s place in the global ranking of countries for their access to, and quality of treatments (HAQ index) +600 Number of Health Tech SMBs, of which two are valued at more than €1bn, with potential to become global leaders 6 FRENCH HEALTH TECH Introduction The convergence of the latest scientific breakthroughs This report intends to demonstrate the potential and in biology (genome sequencing and editing, cellular attractiveness of the French health tech stage, by: therapy, synthetic biology, monoclonal antibodies, etc.) with engineering technologies and information 1. Showcasing how the health tech revolution will be technologies has the potential to revolutionize able to address global health challenges medicine. A third of the Deep Tech startups, focused 2. Estimating the medical and economic potential of on artificial intelligence, Big Data, robotics, and the French health tech hub nanotechnologies, address human health issues, from 3. Outlining the main scientific, clinical, financial, and prevention to innovative equipment and treatments, entrepreneurial assets of the French environment through health care system management. It’s a new world. We are convinced that France will be one of the next global health tech hubs – and we hope that many For some years now, French companies have been entrepreneurs, scientists, doctors, analysts, and engaged in an innovation race, with exceptional engineers will join us on this journey to address the creativity in hundreds of technological directions, challenges of health care. and with the support of public authorities. Today, the “French tech” brand is recognized worldwide, and the industry has raised almost €5 billion in five years (about $6.1 billion) – an ever-growing figure. Moreover, in the past, France has been able to create favorable conditions for the development of its health care industry, representing €67 billion of turnover in 20161 (about $82 billion). This field thus remains robust, despite relative stagnation since the early 2010’s. In this general context, France has the potential to become one of the world’s next hubs for health tech, thanks to its entrepreneurial, industrial, medical, and scientific dynamics. The country has several assets – including DBV Technologies, Cellectis, and Genfit, which could grow exponentially in the next decade. On October 30, 2017, the Swiss pharma group Novartis acquired the French rising star AAA2 for €3.3 billion, validating France’s potential in terms of health care innovation. 1 LEEM, L’économie du médicament, 05/09/2017; BMI Research, France Medical Devices Report, Q4 2017 2 Advanced Accelerator Applications FRENCH HEALTH TECH 7 Authors Maryvonne Hiance Elsy Boglioli President, France Biotech Partner & Managing Director, BCG [email protected] [email protected] Patrick Guérin Agnès Audier Vice-President, France Biotech Partner & Managing Director, BCG [email protected] [email protected] Alexandre Regniault Thomas Delano Vice-President, France Biotech
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