Bavarian biotechnology grows and achieves record financing
11 start-ups and two relocations show start-up momentum
At this year's BayOConnect conference, BioM presented his latest annual report "Biotech in Bavaria 2023/24 - Incubating Science for Health". With the report, the Biotech Cluster Development Organization presented the current biotech figures as well as developments and successes of the Bavarian biotechnology scene. With 527 companies, 58,000 employees, 11 start-ups and two relocations and a financing total of over 470 million euros, the Bavarian biopharmaceutical industry continues to show impressive growth and stability despite global economic challenges.
BioM Managing Director Prof. Dr. Ralf Huss and Tobias Gotthardt, State Secretary in the Bavarian Ministry of Economic Affairs, presented the latest annual report "Biotech in Bavaria 2023/24 - Incubating Science for Health" with current figures from the Bavarian Biopharmaceutical industry.
Copyright: © BioM / Andreas Schebesta
Together with Tobias Gotthardt, State Secretary in the Bavarian Ministry of Economic Affairs, BioM presented its annual report "Biotech in Bavaria - Incubating Science for Health" at its BayOConnect biotech conference in Munich.
Employment at a new high
In 2023, the number of biotech and pharmaceutical companies in Bavaria, including CROs and other companies (e.g. CMOs, suppliers, reagent and technology providers) increased slightly to 527. This upward trend is primarly due to the stable development of biotech companies within the cluster.
The number of employees grew by 7,000 to 58,000 (+ 14%), once again reaching a record high, with biotechnology companies making the main contribution. With a total of 29,500 (+ 20 %) employees, the 310 (+ 4 %) biotech companies are the most important employers in the sector. National and international companies employed a total of 20,000 people at their Bavarian sites, an increase of 14%. Small and medium-sized Bavarian biotech companies recorded an increase of 2,500 employees, which corresponds to almost 36%.
Start-up momentum remains strong
Bavaria remains particularly characterized by its start-up-friendly ecosystem. A total of 13 new companies were founded in 2023 - 11 of which were start-ups. Founders will find a strong network of support organizations in the region. In addition to its consulting services, BioM's start-up incubator MAxL (Munich Accelerator Life Sciences & Medicine) supports pre-seed teams and early-stage start-ups with state-of-the-art laboratory equipment, co-working, meeting and event space as well as numerous training and networking opportunities. The Bavarian Ministry of Economic Affairs is funding this project with 8.5 million euros.
Record financing and billions invested in the location
Bavarian biopharmaceutical companies raised a record total of over 470 million euros in funding in 2023. The investment round of 255 million euros by the radiopharmaceutical company ITM in Garching was exceptional. Other successful financing rounds were recorded by Amsilk, Ethris, mbiomics, deepc, Bind-X and Formycon.
Significant investments confirm the attractiveness of the Bavarian biotech cluster. Roche is investing 90 million euros in a new gene therapy development center in Penzberg and a further 600 million euros in a diagnostics research building. Daiichi Sankyo is planning around 1 billion euros for an international innovation center in Pfaffenhofen, and Sandoz is investing 25 million euros in a biosimilar development center in Holzkirchen. The Aenova Group is building a new production facility in Regensburg for 25 million euros, while Minaris is expanding its production for cell and gene therapeutics in Taufkirchen and ITM is building a new production site in Neufahrn for the radioisotope Lutetium-177.
Oncology remains the most important indication in drug development
Bavarian companies made progress in pipeline development, particularly in the preclinical phase, while the clinical development pipeline remains well-filled: the total number of projects in phases I-III remained constant at 78. As in previous years, cancer therapeutics represent the largest share of active substances in clinical development, ahead of therapeutics for autoimmune diseases.
Optimistic outlook
In a survey, BioM asked the companies in the Bavarian Biotech Cluster about their current business situation and how they assessed the future of their company. According to the survey, 71 % of respondents rate their current business situation as good or very good (+ 9 %). Looking ahead, 59% of respondents are positive about business development until the end of 2024, while 37% do not expect any changes. In the medium term over the next three to five years, as many as 77% expect an improvement.
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