1. More industrial strategies as a result of the COVID-19 pandemic
The pandemic has led to a resurgence of industrial strategies, which had long been out of favor. State-led programs include the EU's Green Deal, which aims to transition national economies toward lower carbon emitting production. We expect these strategies to intensify competition among European countries to attract life sciences investments that are generally low-carbon emitting and bring high added value.
2. The continuing maturity of the Life Sciences industry
We see first-hand how companies looking to launch a product for the first time are starting to go it alone, without the help of big pharma. Financing has become easier to secure, a number of big pharma executives have been open to joining smaller biotech businesses, and there is no shortage of highly experienced advisers who can support businesses through the launch process.
3. A planned minimum tax rate under BEPS 2.0
In the OECD, 130 countries approved a minimum tax rate of 15 percent and the taxing of profits of the biggest multinationals in countries where the profits are earned. This limits potential to attract investment through competitive tax planning.