The industry association Bio Deutschland reports that the companies in the sector managed to raise slightly more capital in 2023 than in the previous year (920 million euros), totalling 1.08 billion euros. The share of venture capital climbed from 465 million to 533 million euros, while proceeds from capital increases via the stock exchange rose from 456 million to 547 million euros. The years 2020 and 2021 were still characterised by the high financing level for coronavirus vaccines.

Larger VC financings in German biotech in 2023 were the rounds of ITM Isotope Technologies Munich with 255 million euros in June and Complement Therapeutics with 72 million euros in April. Industry observers repeatedly point out that German biotech companies need more funding, especially for their development projects in the advanced clinical phase, and that larger capital commitments are required.

Hopes are also pinned on the new VC fund of funds "Wachstumsfonds Deutschland", which reached its target volume of 1 billion euros at the end of 2023 and in which more than 20 investors have participated alongside the federal government and KfW Capital as anchor investors.

The industry association's annual trend survey shows a mixed picture of expectations for the current year. Although the companies surveyed still rate their business situation in 2023 as significantly worse than in 2022, they are more positive about the future again. However, the negative trend in personnel planning and investment in research and development for the coming year is continuing, Bio Deutschland reports.

"The year 2023 has presented our companies with particular challenges. The capital market was difficult, energy costs are high and qualified staff are hard to find. The results of our trend survey reflect this situation," says Association Chairman Oliver Schacht, summarising the scenario.

Remarkably, many managing directors assume that the situation will not deteriorate further and that there are even signs of a trend reversal. "However, they are still cautious regarding investments, and more job cuts are also planned, but still at a low level," adds Schacht.

In detailing the results, 29% of respondents stated that their current business situation was poor, compared to 13% in 2022. Around 35% of respondents expect their business situation to be better in 2024 than in 2023, compared to only 26% in the previous year. The number of companies that will reduce staff has increased: 14.5% have plans to cut jobs, which is around three times as many as a year ago. The number of those planning to increase staff has nevertheless remained stable at 45%.

33% of companies want to invest more in research and development in the current year, compared to 39% in the previous year. The number of those who think the current political climate is bad for biotech companies has more than doubled from 15% to 35%. As far as the future political climate is concerned, the companies expected hardly any changes. Viola Bronsema, Managing Director of the association, appeals to politicians to do more for the industry: "Biotechnology has still not become a top priority for our government, even though the Chancellor's Council for the Future, for example, has recognised the importance of the technology. Something urgently needs to happen here."