Biotech sector continues to grow
Biotech sector continues to grow
Berlin, 12 January – Germany’s biotechnology sector is entering the new year on an optimistic note and is still on a growth path. A majority of companies said they were looking to hire more staff and increase investment in research and development (R&D). The good sentiment is also evident in the current financial figures: Biotech companies took in about €505 million euros of fresh capital in 2016, coming close to the previous year‘s record figure (2015: €550 million). These were the results of a company survey by the biotechnology sector association, BIO Deutschland, in cooperation with the biotech magazine |transkript.
The survey reveals that the mood in the biotech sector is still positive: The responding companies again indicated at the end of 2016 that they plan to make new investments in staff and R&D. Two-thirds of those questioned viewed the current business situation favourably, while 54 percent anticipate further improvement in the business situation in 2017. These results echo the similarly positive results from last year’s survey.
The results are supported by research by BIO Deutschland and the magazine |transkript, which is published by BIOCOM AG. According to this research, investment in German biotech firms once again reached a high level in 2016 (€505 million), despite a decline of 8 percent compared with the record year of 2015 (€550 million). However, the allure of biotech stocks has grown among investors: Listed companies raised a total of €258 million on the equity markets, a 5 percent increase over the previous year (€246 million). In addition, BRAIN AG’s listing was the first biotech IPO in Frankfurt since 2007. Venture capital investors put a total of €216 million into German companies in 2016, down 17 percent over the record year of 2015 (€260 million).
This development allowed Germany to put itself in a positive light vis-à-vis the European capital market, which in 2016 experienced considerable disillusionment after the boom year of 2015. According to a study by BIOCOM AG, European biotech companies raised a total of €3.3 billion on the equity markets in 2016, only about half as much as in 2015 (€6.16 billion). Some 17 firms took the leap into public ownership last year (2015: 25), the overwhelming majority (14) on one European stock exchange. Only three companies chose to go public on Nasdaq in the United States.
Peter Heinrich, chairman of the board of BIO Deutschland, summed up the situation as follows: “The positive trend we saw last year in our survey has stabilised. Company leaders have a relatively favourable view of the political climate, which can be attributed to positive developments in recent years. For example, the Pharma Dialogue, in which we actively participated, has produced a number of positive results. The reform of the tax loss carry-forward rules for corporations has also sent an encouraging signal to innovative small and medium-sized companies and their investors. Looking ahead to the next legislative period, we hope to see this development continue. That is the only way to ensure Germany continues to be a driver of innovation over the long term.”
Sandra Wirsching, capital markets expert at BIOCOM AG, added: “The financing climate has reached a markedly high level in recent years. We are now again seeing VC rounds in the double-digit million range as well as more and more foreign investors getting involved in funding rounds in Germany.”
About BIO Deutschland:
The Biotechnology Industry Organisation Deutschland (BIO Deutschland) has more than 330 members – enterprises, bioregions, and services providers. The association has its headquarters in Berlin. The aim of BIO Deutschland is to support and promote the development of an innovative economic branch based on the modern bio-sciences. President of the association is Peter Heinrich.
Further information is available at: www.biodeutschland.org/en/survey-of-companies-615.html
BIO Deutschland’s supporting members and sector partners are:
AbbVie, Avia, Bayer, Boehringer Ingelheim, Clariant, CMC Biologics, CMS Hasche Sigle, Deutsche Bank, EBD Group, Ernst & Young, Euronext, Evotec, Isenbruck, Bösl, Hörschler LLP, Janssen-Cilag, KPMG, M+W Central Europe, Merck, Miltenyi Biotec, MorphoSys, Phenex Pharmaceuticals, PricewaterhouseCoopers, Qiagen, Roche Diagnostics, Sanofi Aventis Deutschland, SAP, Thermo Fisher Scientific, Vertex Pharmaceuticals, VWR International
BIO Deutschland e.V.
Dr. Claudia Englbrecht
Am Weidendamm 1a
Tel.: +49-(0)-30-72625-132, Fax: -138
Publication free of charge - Specimen copy requested.