Bavarian biotechnology maintains its position in the crisis and continues to grow

Employment peak
Together, the pharmaceutical, biotech and other companies in the sector employ around 51,000 people in Bavaria. With a total of 24,500 employees, the 298 (+3%) biotech companies are the most important employers in the sector. This corresponds to an increase of 2,500 employees compared to the previous year. National and international companies employed a total of 17,500 people at their Bavarian sites, an increase of 16.5%. Small and medium-sized Bavarian biotech companies remained stable with a total of 7,000 employees.
Strong start-up momentum, newly established companies above the national average

Bavaria continues to be particularly distinguished by its startup-friendly ecosystem. In 2022, a total of 14 new companies were added – 11 of which were newly founded. The number of start-ups puts Bavaria at the top of the list in Germany and above the national average. In the region, start-ups find a strong network of supporting organizations. With the virtual incubator inQlab, BioM was able to help a large number of teams to successful start-ups. BioM will intensify its support for spin-offs with its physical incubator Munich Accelerator for Life Sciences & Medicine (MAxL) starting in 2024. The Bavarian Ministry of Economic Affairs is funding this project with 8.5 million euros.

Funding climate and investment in new research infrastructure
The global crises are also having a particularly strong impact on start-ups and smaller companies that rely on external support from investors. Despite the currently subdued investor market, Bavarian companies have succeeded in raising considerable sums and closing some major deals. In total, the funds raised in 2022 amounted to more than 350 million euros. Tubulis, ITM, CatalYm and Ethris were particularly successful with their financing rounds in the double-digit million range. Both Immunic and Vivoryon raised significant funds via share placements. Heavy investments are being made in new research infrastructures. The Roche Group is investing up to 250 million euros in its new diagnostics research building at the Penzberg site. In addition, the first laboratories of the Fraunhofer Institute for Immunology, Infection and Pandemic Research were opened in Penzberg. The 9,200 m2 Life Science Center in Gräfelfing will provide state-of-the-art laboratory and office space for some 400 biotech scientists in 2023. The WACKER Group is investing a double-digit million euro sum in the construction of a biotechnology center and aims to raise industrial biotechnology research to a top international level by founding the TUM WACKER Institute for Industrial Biotechnology. Ludwig-Maximilians-Universität München (LMU) is expanding its Großhadern/Martinsried campus with ICON, for research into cardiovascular diseases, and DIAG for diagnostics at the Max von Pettenkofer Institute for Bacteriology and Virology.

Oncology remains most important indication in drug development
The Bavarian biotech landscape is traditionally strongly characterized by drug development. These are long-term research and development projects that proceed from the initial identification of a drug candidate through preclinical and clinical studies in a lengthy process to approval. A whole series of R&D projects have been advanced and are now in the preclinical phase (67). In contrast, the total number of projects in clinical phases I to III has decreased to 79. A total of 23 products are currently in clinical phase I, 34 in phase II and 22 in phase III. As in previous years, cancer therapeutics account for the largest proportion of compounds in clinical development (35). Therapeutics for autoimmune diseases follow with 9 projects. As in Germany, the product pipeline in Bavaria is dominated by biopharmaceuticals and here by the active substance group of recombinant antibodies.

Business climate mostly positive
Following the coronavirus pandemic, which brought not only opportunities but also many challenges for biotech companies, companies worldwide are struggling with supply bottlenecks and rising prices. In a survey, BioM asked the companies of the Bavarian Biotech Cluster how they assess their current and future business situation.
According to the survey, 62% of respondents rated their company’s current business situation as good (48%) or even very good (14%), 29% satisfactory and 9% poor. 42% assessed their business development up to the end of 2023 as positive, 13% expect it to deteriorate, while 45% expect no change. After all, 72% of the companies surveyed expect their company’s business situation to improve in the next three to five years, and only 7% expect it to deteriorate.

Digitization, AI and Big Data are the trends in biomedicine development
Biotechnology itself is at an important turning point – facing major challenges and opportunities. In recent decades, it has experienced enormous growth and Bavaria has established itself as one of the world’s leading locations. BioM Managing Director Prof. Dr. Ralf Huss comments: “In order to maintain and expand the outstanding position of Bavarian biotechnology, we must face up to current developments and trends: The increasing linkage and digitization of processes and data as well as the use of AI and Big Data will provide better and faster solutions to pressing medical issues and deliver new diagnostic and therapeutic methods. In Bavaria, we have the necessary tools to drive this development forward together with all players.”

Bavarian start-ups are already realizing the chosen direction with their success stories: For example, deepc is paving the way for the application of AI in radiology. Its software platform enables clinics and medical practices to centrally use a wide variety of AI applications from globally leading companies. m4 Award-winner Invitris is addressing the current problem of increasing antibiotic resistance worldwide. To this end, the company has developed a technology that enables the development and production of new synthetic antimicrobial agents such as bacteriophages. Modular thinking and modular technologies play a major role here, including machine learning for product optimization.

Digitization – antibiotic resistance – CAR-T Cell therapies – locations – companies
The Bavarian Biotech Report also highlights the perspective of various players on the industry in interviews, shows activities on digitization, new approaches in the fight against antibiotic resistance, as well as breakthroughs in CAR-T cell therapies and features the Bavarian biotechnology locations. As usual, the report is complemented by the current and constantly growing company directory with profiles and contact details.

The Report Biotech in Bavaria 2022/23 is available as ePaper or pdf for download or at: www.bio-m.org/zahlen-und-fakten/publikationen. A print version is available from BioM.