Over the past five years, Belgium has steadily built a reputation as one of Europe’s premier biotech hubs. Strong public-private partnerships, an open innovation culture, and world-class scientific institutions have fueled growth across the sector. The ecosystem’s strength has been evident in record-setting public market valuations, successful M&A activity, and a steady flow of venture capital into promising startups.
However, the global life sciences sector has also faced major headwinds: geopolitical tensions, rising interest rates, and increased investor caution have made it harder for young companies to raise capital and reach commercial maturity. In this challenging environment, Belgium’s biotech community continues to outperform many peers across Europe.
This resilience was highlighted in the new State of the Union 2025 report, compiled for the health innovation cluster Biovia by KBC Securities and PMV and presented at the State of the Union on 7 May 2025, on the eve of Knowledge for Growth. Here are some of the key findings.
Belgium dominates the European public biotech market
Despite global market uncertainty, Belgian listed biotech companies continued to deliver strong performance in 2024. According to KBC Securities, the combined market capitalization of Belgian biotech firms reached €66.8 billion at the end of March 2024, a 42.7% increase from €46.8 billion the previous year.
The surge was led by heavyweights UCB and argenx, with UCB’s share price alone rising by more than 123%. This positions Belgium as a clear leader among European biotech stock markets. Outside of Europe, the US continues to dominate global public life sciences markets, with Asia rapidly closing the gap with Europe.
“I’m optimistic that the second half of 2025 could improve once there’s more clarity around US trade policies.” – Jeroen Van den Bossche, KBC Securities
A key market trend is the shift in investor preference toward larger, well-capitalized companies with strong pipelines and liquidity. Smaller firms – particularly in emerging sectors like agtech and healthtech – are finding exits more challenging, given higher commercialization risks. In contrast, biotech companies with differentiated technology platforms continue to attract interest and opportunities for strategic exits.
“2024 was a strong year, but 2025 remains uncertain,” says Jeroen Van den Bossche, Director Life Sciences, Specialist Sales at KBC Securities. “US policy is causing turbulence in the markets, and investors are steering clear of riskier life sciences stocks for now. IPOs are unlikely in the short term. However, I’m optimistic that the second half of 2025 could improve once there’s more clarity around US trade policies.”
M&A and private investment: signs of selective strength
Across the broader life sciences sector, M&A activity was dynamic in 2024. Medtech, diagnostics, digital health, and CDMO sectors saw 305 deals globally, more than doubling the previous year’s total of 134. Total deal value reached $63.1 billion, with major acquisitions such as J&J’s purchase of Shockwave and Novo Holdings’ acquisition of Catalent contributing significantly.
In biotech specifically, deal value was lower than the previous year’s record levels. No biotech deals exceeded $5 billion in 2024, bringing total sector M&A value down to $45.7 billion – in line with 2022, but well below the $142 billion recorded in 2023. Nevertheless, the median biotech deal value remained high at $850 million, reflecting continued demand for high-quality assets.
“Despite market volatility, homegrown innovation remains a key driver for private investors.” – Kenneth Wils, PMV
Belgium also saw notable private funding successes. Companies such as Pantera, Confo Therapeutics, Augustine Therapeutics, and miDiagnostics secured significant rounds, demonstrating that capital is still available for companies with compelling science and execution.
“We’re seeing more capital flowing to companies with exceptional science, execution, and leadership,” notes Kenneth Wils, Head of Life Sciences & Care at PMV. “Despite market volatility, homegrown innovation remains a key driver for private investors.”
Across the globe, the biotech and healthtech sectors are facing what many describe as a “survival of the fittest” phase. Investors are focusing their capital on companies with strong data, experienced management teams, and robust R&D pipelines. Belgium’s innovation ecosystem is well positioned to compete in this environment.
Collaboration remains the sector’s core strength
A consistent theme in Belgium’s biotech success story is its collaborative ecosystem, where academic excellence meets entrepreneurial drive. The Flemish health innovation cluster Biovia – formed in early 2025 through the merger of flanders.bio and MEDVIA – now represents over 450 members in human and planetary health. The organization is committed to breaking out of silos and further strengthening these connections across different sectors and regions.
“Belgium is called the biotech powerhouse of Europe for good reason,” says Ann Van Gysel, CEO of Biovia. “Our companies know how to turn challenges into opportunities. Even in uncertain times, we continue to build a thriving ecosystem.”
“Belgium is called the biotech powerhouse of Europe for good reason.” – Ann Van Gysel, Biovia
Jérôme Van Biervliet, Managing Director of VIB and interim chair of Biovia, agrees: “The strength of our biotech sector lies in the close collaboration between top-tier science and entrepreneurship. Together, we’re building a European innovation ecosystem where funding and harmonized regulation are key pillars.”
With Belgium playing a prominent role in the European biotech landscape, maintaining this spirit of collaboration will be critical for addressing future challenges – from scaling production to navigating complex regulatory pathways.
“The strength of our biotech sector lies in the close collaboration between top-tier science and entrepreneurship.” – Jérôme Van Biervliet, VIB
Looking ahead: European policy and market trends
Looking to the rest of 2025, the life sciences sector remains in a state of flux. Uncertainty around US trade policy, lingering inflation concerns, and geopolitical tensions are keeping investors cautious.
At the same time, major policy shifts are underway in Europe. The proposed EU Biotech Act, currently under discussion, aims to streamline regulatory processes, enhance competitiveness, and reduce fragmentation across Europe’s biotech landscape. If implemented effectively, this could further strengthen Belgium’s leadership position and accelerate innovation across the region.
In this context, clusters like Biovia and initiatives such as Knowledge for Growth and the State of the Union are vital for keeping the ecosystem connected and focused on strategic priorities.
Read this previous article to learn more about Biovia: the new health innovation cluster for human and planetary health!
Belgium’s biotech sector has proven its resilience and adaptability time and time again. As new technologies emerge – from healthtech to AI-driven drug discovery and advanced biomanufacturing – and as the global biotech landscape evolves, the country is well placed to continue leading in European health and life sciences innovation.
