Biotech investment hits a new high
The German biotechnology sector experienced a record year in 2017, with investment climbing to about €674 million. A majority of companies said they plan to increase hiring and ramp up R&D spending in the new year. These were the results of a company survey by the biotechnology sector association, BIO Deutschland, in cooperation with the biotech magazine |transkript.
The survey shows that the mood in the biotech sector is mostly upbeat. The responding companies again expressed greater intentions at the end of 2017 to make new investments in personnel and R&D. Half of respondents view the current business situation favourably, and expect the situation to improve even further in 2018. The survey revealed a positive climate overall, although the index was slightly lower than last year's level.
The results are backed up by research by BIO Deutschland and |transkript, which is published by BIOCOM AG. According to this research, investment in German biotech firms hit a record high in 2017: At €674 million, the figure is even slightly higher than the previous all-time high of €656 million reached in 2010, and a third higher than last year’s total (2016: €505 million). Listed companies achieved a double-digit growth rate of 36 percent, raising a total of €352 million (2016: €258 million). The successful IPO of InflaRx from Jena on the US exchange Nasdaq bolstered biotech’s coffers by a further approximately €86 million. Venture capitalists invested €236 million in German firms in 2017, 9 percent more than the previous year (2016: €216 million).
Peter Heinrich, chairman of the board of BIO Deutschland, summed up the situation as follows: “The German biotech sector has seen continuous development over the past several years. To ensure that this growth trend is sustainable, it is urgent that the new German government further improves the policy environment for innovation, particularly for small and medium-sized companies. We expect the biotechnology agenda proposed by the CDU to be implemented.”
You can find the full text of the press release here:
You can find the results of the survey here: