Biotop-report 2013

10

BioTOPics 46 | September 2013 

BioTOP-Report

 Biotechnology 

GLYCOTOPE moved two products into Phase II clinical devel-

opment. After successfully completing Phase I of its glyco-opti-

mised therapeutic antibody PankoMabTM, the company moved 

the compound to Phase II clinical development in ovarian cancer, 

with further indications planned. After successful completion 

of Phase I, GLYCOTOPE also advanced its glyco-optimised ther-

apeutic protein FSH-GEXTM into Phase II clinical development in 

in-vitro fertilisation.

The Financing Situation

The financial position of the region’s biotech industry is stable 

overall, and the consolidation efforts during recent years are now 

paying off. The business models of most companies are commer-

cially feasible and generating free funds for investments and 

growth. Companies with high capital needs successfully acquired 

new funds for their product developments or market approvals 

in 2012.

Capital increases of listed companies alone injected more than 

€ 40 million into the respective companies, headed by MOLO-

GEN AG, which generated € 25 million. Apart from these public 

placements, there were no major financing events – with two 

exceptions: The first outstanding exception was the takeover of 

the molecular imaging pipeline of Bayer Healthcare by the Pira-

mal Group into the newly founded company Piramal Imaging. Eu-

rope’s leading pork marketing company Tönnies joined the ranks 

of financially strong private investors in the pharmaceuticals sec-

tor. Tönnies acquired the majority in the company Pharma Action 

in Berlin. The companies aim to manufacture the coagulation in-

hibitor heparin jointly in future. This active substance is obtained 

from the intestinal mucus of pigs and administered to patients 

during operations or in the case of cardiac illness.

Private venture capital transactions were not significant. Once 

more, the most active investor was IBB Beteiligungsgesellschaft 

with two first and two follow-up investments and the HTGF with 

two start-up funding investments. It should be noted that these 

are both public-sector investors. The private VC business remains 

dissatisfying. It is therefore time to create new drivers and incen-

tives for venture capital.

Public-sector institutions remain very important to the financing 

of product developments and investments. The two states Berlin 

Number of employees

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

'03

'04

'05

'06

'09

'10

'11

'12

'07

Employees in Biotech SMEs

'08

4.348

Employment rose to 4.348 in 2012. This is a growth of 6,5% in 

comparison to the previous year. The number of companies 

went up to 222, reflecting the arrival of 10 companies and five 

departures. (Source: Internal survey, BioTOP database, 222 

companies questioned, June 2013)

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11

BioTOPics 46 | September 2013 

BioTOP-Report

 Biotechnology 

and Brandenburg alone disbursed more than € 37 million in sup-

port funds to regional life sciences companies, while the German 

federal government provided a similar amount of project support 

funding. The leverage effect of these funds resulted in private 

investments of comparable dimensions. When compared to pure-

ly private investments, it is clear how important public funding 

programmes are to permit new product developments and as a 

multiplier for private fundings.

Conclusion

Overall, the economic and financial situation of the regional bio-

tech industry is solid. Most companies are financing themselves 

with own funds, while companies requiring external capital are 

obtaining it successfully, thereby demonstrating that invest-

ments in the life sciences are attractive for both institutional and 

private investors. Apart from public-sector portfolio investors, 

however, the venture capital market remains weak – a phenome-

non that has been observable for many years. Although it is good 

and proper that the regional and federal governments support 

the research and development of innovative and promising proj-

ects with appropriate funds and thereby secure highly qualified 

jobs for the future, the commitment of private investors and the 

associated conditions must be developed further and improved.

0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

150

160

170

180

190

200

'03 '04 '05 '06

'09 '10 '11 '12

'07

Agriculture/Food

Market Segments of Companies

Number of companies

White Biotechnology /Environmental Biotechnology

Biomedicine

'08

'03 '04 '05 '06

'09 '10 '11 '12

'07 '08

'03 '04 '05 '06

'09 '10 '11 '12

'07 '08

30

14%

40

18%

184

83%

Most companies focus on biomedicine. A total of 83 % of companies, focus primarily on development in the areas of new diagnostics, drug 

development and associated services or technologies. 14 % of the companies are active in the agriculture / food sector, white biotechnology / 

environmental biotechnology amounts to 18 % of all entries. (Source: Internal survey, BioTOP database, responses from 222 companies, multiple 

entries, June 2013)

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