France's biotech firms prepare exit strategy

With the outcome of May's presidential elections in France in doubt, biotechnology firms are considering taking part in a "flight of capital" if Segolene Royal becomes the first Socialist party nominee to win election since 1988. The last time a Socialist took over from a center-right administration was in 1981, when many of the major French industrial firms were nationalized by President Francois Mitterrand.

Philippe Pouletty, honorary chairman of France Biotech, the country's biotechnology trade association, told the Financial Times: "if the Socialists were elected and implemented their pre-election promises, a lot of people would say 'enough is enough' and move abroad, just coming back to France for holidays."

As a sign that the French drug industry (LEEM) does not confine its woes to fears of a Socialist administration if Ms Royal defeats the center-right candidate, Nicolas Sarkhozy, Christian Lajoux, the LEEM's president, said: "the financial subjugation of the industry, due to the deteriorating public finances, remains the fundamental problem."