Biotechnology Biotech–Industry Set for Future Growth
Germany's biotechnology industry continues its growth: In 2011, the whole segment reported a growth of turnovers of around ten percent to € 1.1 billion for German based companies.
“The German biotech industry developed well in an overall positive environment in 2011. All important key figures point in the right direction,” says Dr. Siegfried Bialojan, head of the Life Science center at Ernst & Young and author of the German Biotechnology Report.
Some figures, nevertheless, show a less positive development: Capital backing for biotech companies has become increasingly difficult in 2011. While 2010 saw capitalisations of € 441 million, only € 130 million were gathered in 2011 – a 71 percent decrease. Even the crisis strucken 2009 saw investments of € 153 million. In the US, for comparison only, investments rose by 21.5 percent to a total of US $ 29.8 billion.
But this development poses also a chance, Dr. Bialojan believes: “Many companies have already adapted their business models, to reduce the dependency on dwindling venture capital.” This development is also mirrored in a change of the product portfolio, the expert states: Moving away from cost and research intensive active agent development to a concentration on innovative new technologies, new developments in diagnostics and services. On the other hand, the increased efficiency of capital investments with systematic analysis of cost structures and investion models lead to a significantly reduced capital demands, Bialojan said.