Concentrated expertise at the Biotech Finance Summit in Berlin

The Biotech Finance Summit took place in Berlin in early July. With a great view, delicious food and a good atmosphere, the event started on July 8th with the traditional networking evening. This time, KPMG hosted the event on the 21st floor of its new representative office in the German capital near the main train station.

On the morning of July 9, Thermo Fisher Scientific hosted a working breakfast to discuss the importance of location and innovation financing using the example of gene and cell therapy. With three keynote speeches and a lively discussion, the well-attended breakfast was an interesting start to the conference day (see also News).

Dirk Honold and Heike Balzer, the long-standing leaders of the Finance and Taxation working group, then opened the conference itself, which covered a wide range of topics.

The Finance Summit began with a highlight. Dirk Honold discussed with Luise Hölscher (State Secretary in the German Federal Ministry of Finance), VC investor Stefan Fischer (TVM Capital) and CFO Klaus Maleck (ITM Radiopharma) the biotech finance ecosystem and its success factors and fields of action. They discussed the German fund law, possible conflicts with EU state aid law, bureaucratic hurdles and investments of pension funds in innovative companies on the capital market. State Secretary Hölscher came across as competent and quick-witted, showing an understanding of the needs of innovative companies and a pragmatic willingness to find solutions for the industry.

This was followed throughout the day by presentations from CFOs Walter Miller (Heidelberg Pharma), Carsten Dehning (formerly Emergence Therapeutics) and Enno Spillner (Formycon), as well as input from event sponsors KPMG, J.P. Morgan, CMS Hasche Sigle and WTS.

Miller reported on how a depreciated legacy portfolio is financing the future of Heidelberg Pharma through royalty financing. While the company now has an active pipeline of antibody-drug conjugates (ADCs), it has been able to generate significant revenues from the sale of global royalty income from the potential approval of the antibody Girentuximab as a radiopharmaceutical diagnostic.

Carsten Dehning provided insights into the sale of Emergence Therapeutics to Eli Lilly in the summer of 2023. Founded in 2019, the company had made a name for itself with an impressive Series A funding round of around €87 million. Dehning vividly described how and when which milestones led the founding team to decide to sell the company, contrary to their original goals.

In his presentation, Enno Spiller not only introduced Formycon, but also explained the specifics of the biosimilar industry in terms of approval, reimbursement and market entry barriers, as well as the associated financing challenges.

Andrea Sternisko (KPMG) presented the role of sustainability strategy, reporting and governance (ESG) for life sciences companies. Sophie Jones, Philipp de la Chevallerie and Henry Cappe of J.P. Morgan provided a capital markets update on the US biotech industry. Martin Friedberg and Friedrich von Spee (CMS Hasche Sigle) presented the tax framework for employee financial participation in Germany and the changes resulting from the Future Financing Act. Daniel Blöchle (WTS) gave an overview of the pros and cons of share and asset deals and their tax implications.

In addition to the presenting sponsors, the event was also sponsored by BakerTilly. Platform Life Sciences was the media partner of the Biotech Finance Summit.

In addition to the varied program, the nearly 90 participants had plenty of time for networking. In a special ceremony after the lunch break, the management team of the Finance & Taxes working group said goodbye and the new management team was introduced (see also News).