The biotech industry is experiencing significant growth, and companies worldwide seek to expand into new markets. The US has long been a popular destination for biotech companies, and with President Biden’s launch of the Inflation Reduction Act, it has become even more attractive for European biotech companies to expand into the American market.
The US has the largest biotech market globally, valued at over $1.1 trillion in 2020. The American healthcare system is highly advanced, and the government provides substantial investment and support to biotech companies, including tax incentives, grants, and funding for research and development.
President Biden’s Inflation Reduction Act includes various provisions beneficial to biotech companies, such as tax incentives, increased funding for research and development, and greater access to capital. The extension of the Orphan Drug Tax Credit is a significant provision that offers a 25% tax credit to biotech companies developing drugs for rare diseases, encouraging companies to invest in this area.
The American market is highly suitable for European biotech companies to expand into because the US and Europe have similar regulatory frameworks for biotech products. Moreover, the Inflation Reduction Act provides several funding opportunities and tax incentives specifically targeted at biotech companies. Finally, the American market is highly receptive to innovative biotech products, therapies, and cures for diseases.
In conclusion, the Inflation Reduction Act launch by President Biden makes the American market the best destination for European biotech companies seeking to expand globally. With tax incentives, funding opportunities, and a highly advanced healthcare system, biotech companies can take advantage of this market’s significant growth potential.
