European biotechnology companies need funding to compete with US drug developers but are struggling to raise funds in public markets because of limits on the amount they can raise from new investors.

The BioIndustry Association (BIA), a UK trade body, is lobbying for pre-emption guidelines applied by UK institutions to be relaxed. These prevent companies raising more than 5% outside their shareholder base through an equity issue. The association would like to see guidelines brought in line with the US, where all companies are allowed to offer 20% of stock to non-shareholders.