• Employment grows by 14% to 58,000 employees in the Bavarian biopharma sector
• Slight increase in the numbers of biopharma companies
• 11 start-ups and two relocations show start-up momentum
• Record financing of more than 470 million euros
• Oncology remains the most important indication in drug development
• 71% of companies rate the current business situation as good or very good
• Billions invested in the Bavarian location

At this year’s BayOConnect conference, Bio^M presented his latest annual report "Biotech in Bavaria 2023/24 – Incubating Science for Health". With the report, the Biotech Cluster Development Organization presented the current biotech figures as well as developments and successes of the Bavarian biotechnology scene. With 527 companies, 58,000 employees, 11 start-ups and two relocations and a financing total of over 470 million euros, the Bavarian biopharmaceutical industry continues to show impressive growth and stability despite global economic challenges.

Together with Tobias Gotthardt, State Secretary in the Bavarian Ministry of Economic Affairs, Bio^M presented its annual report "Biotech in Bavaria – Incubating Science for Health" at its BayOConnect biotech conference in Munich.

Employment at a new high

In 2023, the number of biotech and pharmaceutical companies in Bavaria, including CROs and other companies (e.g. CMOs, suppliers, reagent and technology providers) increased slightly to 527. This upward trend is primarly due to the stable development of biotech companies within the cluster.

The number of employees grew by 7,000 to 58,000 (+ 14%), once again reaching a record high, with biotechnology companies making the main contribution. With a total of 29,500 (+ 20 %) employees, the 310 (+ 4 %) biotech companies are the most important employers in the sector. National and international companies employed a total of 20,000 people at their Bavarian sites, an increase of 14%. Small and medium-sized Bavarian biotech companies recorded an increase of 2,500 employees, which corresponds to almost 36%.

Start-up momentum remains strong

Bavaria remains particularly characterized by its start-up-friendly ecosystem. A total of 13 new companies were founded in 2023 – 11 of which were start-ups. Founders will find a strong network of support organizations in the region. In addition to its consulting services, Bio^M‘s start-up incubator MAxL (Munich Accelerator Life Sciences & Medicine) supports pre-seed teams and early-stage start-ups with state-of-the-art laboratory equipment, co-working, meeting and event space as well as numerous training and networking opportunities. The Bavarian Ministry of Economic Affairs is funding this project with 8.5 million euros.

Record financing and billions invested in the location

Bavarian biopharmaceutical companies raised a record total of over 470 million euros in funding in 2023. The investment round of 255 million euros by the radiopharmaceutical company ITM in Garching was exceptional. Other successful financing rounds were recorded by Amsilk, Ethris, mbiomics, deepc, Bind-X and Formycon.

Significant investments confirm the attractiveness of the Bavarian biotech cluster. Roche is investing 90 million euros in a new gene therapy development center in Penzberg and a further 600 million euros in a diagnostics research building. Daiichi Sankyo is planning around 1 billion euros for an international innovation center in Pfaffenhofen, and Sandoz is investing 25 million euros in a biosimilar development center in Holzkirchen. The Aenova Group is building a new production facility in Regensburg for 25 million euros, while Minaris is expanding its production for cell and gene therapeutics in Taufkirchen and ITM is building a new production site in Neufahrn for the radioisotope Lutetium-177.

Oncology remains the most important indication in drug development

Bavarian companies made progress in pipeline development, particularly in the preclinical phase, while the clinical development pipeline remains well-filled: the total number of projects in phases I-III remained constant at 78. As in previous years, cancer therapeutics represent the largest share of active substances in clinical development, ahead of therapeutics for autoimmune diseases.

Optimistic outlook

In a survey, Bio^M asked the companies in the Bavarian Biotech Cluster about their current business situation and how they assessed the future of their company. According to the survey, 71 % of respondents rate their current business situation as good or very good (+ 9 %). Looking ahead, 59% of respondents are positive about business development until the end of 2024, while 37% do not expect any changes. In the medium term over the next three to five years, as many as 77% expect an improvement.

Success stories – Interviews – Company directory

The Bavarian Biotech Report also highlights the perspective of various players in the industry in interviews, shows success stories of start-ups, activities of Bio^M and other clusters and reports on the Bavarian biotechnology locations. As usual, the report is supplemented by the current and constantly growing company directory with profiles and contact details.

The Report Biotech in Bavaria 2023/24 is available as ePaper or pdf or for download at: www.bio-m.org/zahlen-und-fakten/publikationen. A print version is available from Bio^M.

About the report Biotech in Bavaria

As the network organization of the biotechnology industry in Munich and Bavaria, BioM annually compiles the report Biotech in Bavaria regarding the development of the Bavarian biotechnology and pharmaceutical industry on behalf of the Bavarian Ministry of Economic Affairs. The report includes current industry figures, trends and selected examples of innovative strength from science and entrepreneurship.