Investments in biotechnologically produced drugs increased to 4.4 billion euros in 2018. (picture alliance/Martin Schutt/dpa-Zentralbild/dpa/archive)
The growing market for biotechnologically produced drugs in Germany is continuing to attract investors. In 2018, the turnover of the biotech sector increased by 9 percent to 4.4 billion euros, the consulting company EY announced on Monday in Frankfurt. A record amount of capital was raised: the funds for biotech companies, including listed companies such as Qiagen and Morphosys as well as newer companies, doubled to 1.2 billion euros.
However, there were also some setbacks. Spending on research and development rose by 4 percent to 1.2 billion euros in 2018 after years of decline, EY said. However, that was less than expected. In addition, the number of new start-ups being founded almost halved from 27 to 15.
In addition, the funds raised were attributable to a small number of companies such as Biontech in Mainz, which conducts research into cancer therapies and got almost 229 million euros from investors. Without this sum, the total venture capital would have actually seen a decrease, said EY expert Siegfried Bialojan. And among the listed companies, Qiagen and Morphosys took the lion's share of capital. "Broad-based financing is on shaky ground," he said. The expensive development of therapeutics in particular found it difficult to attract investors.
In the United States, with its strong capital market, investments in biotech companies rose to an all-time high of 46.2 billion dollars (plus 34 percent). US companies were heavily involved in major takeovers, while German biotech companies played no role.
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