Prospects

The development over the last few years shows that the German biotechnology sector is well-established and highly innovative. Never before has the industry generated as much revenue as in 2014, and there have never been as many people employed in the sector as now. This means that industrial demand for biobased processes, products and services has been constantly increasing for years now. At the same time, this development has been heavily supported by the German federal government. Thus, both science and business in Germany managed to establish the expertise needed in this field.

Under the umbrella of the bioeconomy, biotechnology has developed a solid foothold in advancing strategies of sustainability througout the different industrial sectors. Biotechnology also plays an important role with regard to new drugs and diagnostics, whether its for the treatment of widespread or rare diseases. Biotech drugs are among the blockbusters in the pharma industry, and for many years the numbers of new approvals in this area have been increasing. This development is reflected in the German biotech sector: Most biotech companies are active in healthcare. But considering the high costs for investments in research and development (R&D) and long development times, these companies face special challenges.

In particular, the concern for sufficient financial ressources is a constant companion for the sector. But 2014 could be a turning point. The key indicators demonstrate that the positive global investment climate for biotech companies has arrived in Germany. Although there is still some catching up to do in regards to a suitable tax framework for investments and the willingness to put money into high-risk projects is less pronounced in this country than elsewhere, there are  more signs that point towards growth. In 2014, the highest amount of capital was raised since 2011. In addition, the investors base was broader compared to 2013, which means a decreased dominance of familiy offices. Instead other financiers regained influence: the German pharma industry cooperates more and more with German biotech companies, as the examples of MorphoSys (Merck) und CureVac (Boehringer) showed. The most recent developments in spring 2015 additionally confirm the fact that the German sector is highly attractive for international investors. For the first time, alternative financial instruments such as crowdfunding were also used by biotech firms. A new dynamic was seen in the public sector, too. Hopefully, the Frankfurt stock exchange will once again open for biotech newcomers in the near future.