“What we’re witnessing is the rapid dismantling of the US research infrastructure… It’s also an opportunity for us here in Europe to step up” Dr. Oliver Schacht, Managing Director of Life Science Nord
Dr. Oliver Schacht, Managing Director of Life Science Nord and Chairman of the Board for BIO Deutschland, spoke at German Biotechnology Days 2025 (DBT) in Heidelberg about the challenges and opportunities this disruption presents for Germany and the European biotech ecosystem.
In an interview for the PharmaSource podcast, Dr. Schacht explains that in this rapidly evolving landscape, Europe now has a unique opportunity to strengthen its biotech position, fostering a more entrepreneurial research culture, developing strategic partnerships with China, and crafting a forward-looking regulatory framework that supports innovation and competitiveness.
US Biotech Under Trump: Dismantling and Disruption
The Trump administration’s approach to scientific research is creating unprecedented disruption for the US biotech sector, with consequences reverberating globally. Dr. Schacht doesn’t mince words about what he’s observing: “What we’re seeing now is the rapid dismantling of a lot of the pride of the US research infrastructure, whether it’s the NIH, the CDC, the FDA.”
The impact is severe and immediate. “I looked at the Office of Viral Diagnostics as being gutted. Hundreds of people are being laid off, sometimes for no apparent reason at all,” he explains.
This disruption extends far beyond staffing issues. The administration’s decision to “massively cut down research funding and grant funding” strikes at a pillar that has supported collaborative projects between US and European institutions for decades. The ripple effects are already being felt across the global research ecosystem.
For European biotech, however, this American retreat presents a strategic opening. “There is an opportunity for us here in Europe to step up and offer researchers an opportunity to find framework conditions that are stable, robust, long-term, and predictable.”
Evidence of this shift is already emerging, with tangible changes in researcher behaviour: “We see a massive increase in applications by top-notch researchers from across the US at various top European academic institutions.” Beyond individual applications, Oliver notes that “there are active strategies being developed to recruit and bring in top talent from the US into these European and German research networks.”
The New Dawn of German Biotech: Political Recognition At Last
After decades of relative neglect, Germany’s biotech sector is finally receiving political recognition at the highest levels. “As of last night, we’ve seen the publication of the new coalition treaty for the government to be, and frankly, it contains more biotech, more life sciences than anything we’ve seen in the past two decades.”
The symbolic importance of this shift cannot be overstated. “Under the chapter of the economy and industry, the very first paragraph is about entrepreneurship and startups. That’s a signal for an economy that traditionally prides itself on its automotive, machine tool manufacturing, and steelmaking.”
This political reorientation suggests a fundamental acknowledgment that “Germany’s economy will not fuelled by automotive alone.” Instead, there’s growing recognition of biotech’s strategic importance to the country’s economic future.
The complex federal structure of Germany’s biotech associations—with one national association and over 30 regional groups across the country’s 16 states—reflects both the challenges and strengths of the German approach. While potentially creating redundancy, Dr. Schacht emphasises that this structure allows for tailored support at the local level where innovation actually happens: “New companies don’t get started at a federal level, but in a city, state or university which is part of a regional ecosystem.”
Deep-Rooted Cultural Barriers: Germany’s Biotech Challenge
Dr Schacht has worked extensively on both sides of the Atlantic and brings nearly three decades of industry experience, including roles as CEO of OpGen and Curetis GmbH, and co-founding Epigenomics AG, giving his a unique perspective.
Despite promising political developments, he identifies profound cultural barriers that continue to hamper German biotech progress. These barriers aren’t regulatory but are “deeply cultural” and “in our DNA,” presenting a more challenging obstacle than any legislative hurdle.
The Academic Translation Gap
A fundamental difference exists between how American and German academia approaches commercialisation: “In academia, no matter where you are in the US, it is second nature for professors and academic researchers to want to translate their academic findings into innovation, into spinoffs and entrepreneurial ventures. Whereas here in Germany, we’re still fighting 20 years and counting to establish what we call the third pillar – translational research and innovation spinouts – alongside research and teaching.”
This cultural resistance has historical roots that have persisted despite decades of effort to change the mindset. The federal structure of German education further complicates this challenge, as “education is not at a federal level, it’s at state level,” requiring consensus across 16 different state systems.
Risk Aversion vs. Opportunity Seeking
Dr Schacht identifies a stark contrast in how risk and opportunity are perceived: “Germany historically has always been sceptical of technology. We tend to always look at the risk and the downside before ever looking at any opportunity and upside. That is the fundamental difference – in the States, people will always look at the opportunity and the upside first.”
This risk aversion has historical precedent that directly impacted Germany’s biotech development: “When the German Green Party, which started coming up in the late seventies, early eighties, decided to block in court what was then the world’s first ever production facility for human insulin in genetically modified e coli… that cost the German biotech industry 15 years because all of the big pharmaceutical corporates gave up and went to the US.”
Absence of Equity Culture
The lack of an equity investment culture presents another significant barrier: “People in Germany to this very day think about their federal pensions coming from the federal government. They put money in savings accounts… rather than what you see in the US from your very first paycheck out of college, you put money away in 401k plans, which is equity based. We don’t have an equity culture.”
This cultural difference has direct implications for biotech financing: “People in this country have been trying for over 20 years to kindle more IPOs in the biotech sector in Germany. And we have a fantastic stock exchange in Frankfurt. It works. It just doesn’t work for biotech.”
Overcoming these cultural barriers will require starting “with preschool, kindergarten education and getting kids excited about business, economy, technology” – a generational project rather than a quick policy fix.
China’s Strategic Ascent: From Follower to Competitor
China’s biotech sector has undergone a remarkable transformation that has fundamentally altered the global competitive landscape.
“Twenty years ago, the Chinese used to copy us in diagnostics. Ten years ago, they used to copy us and improve upon it. Frankly, today in diagnostics devices, I don’t believe the Chinese still need us,” he observes, noting the rapid maturation of China’s capabilities.
This shift has changed the nature of partnerships between European and Chinese companies: “They still seem to look at partnerships in Europe as a conduit for their products and their companies into the European market. And we’ll certainly need strategic partners in China to have an entrance into the Chinese market.”
Dr. Schacht sees China becoming “the third major force in the life sciences,” already achieving dominance in many aspects of the sector. Rather than viewing this as requiring an either/or strategic choice, he advocates for a balanced approach: “I don’t think it’s an alternative, either the US or China. I think from a European perspective, it’s Europe first. We’ve got to figure out our own stuff and then we’ve got to work with both US and China, understanding that they’re both strategic rivals at a global level.”
The EU Biotech Act: A Watershed Moment
The forthcoming EU Biotech Act represents a milestone for the industry’s recognition and strategic importance, though its impact will depend on its final form.
“The good news is, and I think that’s really the best news in and of itself, there is going to be an EU Biotech Act,” he states. “Biotechnology has finally arrived on the great political stage and is worthy of its own act, which tells you something that it’s unique enough, different enough from other industries and other sectors.”
While the act’s specifics remain to be seen, Dr. Schacht sees potential: “In the best of all circumstances, it’s an opportunity to lift the whole biotech sector in terms of visibility, in terms of political importance, and in terms of strategic importance to the entire European economies for the coming decades.”
Interestingly, as the EU advances with this initiative, the US appears to be retreating: “The irony, of course, is that the EU followed suit when the US and the Biden administration started with its Biotech Act. Now that’s been dismantled by the Trump administration, we keep forging ahead.”
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