Europe's investment environment has forced much of the biotech sector to morph into specialty pharma. The situation isn't likely to change fast. Executives had best adapt, rather than complain.

Neuro 3d's €31.5 million third round late in 2004 was one of France's largest private biotech financings for years. But none of the investors are looking to France to provide the exit opportunities, which are more likely to be found in M&A, or in Switzerland.

Neuro 3d's €31.5 million third round late in 2004 was one of France's largest private biotech financings for years. But none of the investors are looking to France to provide the exit opportunities, which are more likely to be found in M&A, or in Switzerland.

Sonus' proposed acquisition of Synt:em answers the French biotech's call for a financeable owner with upside, preferably in the US. For many European biotech firms, M&A may be their only way out of a financing hold. The Synt:em deal-granted its approved early next year--shows that it's still possible to call favorable deal terms, however.