Healthcare
Healthcare News | February 2025
Germany’s healthcare sector is attracting more VC investment as it enters the digital age. Electronic patient records are being rolled out and generative AI tools supporting the medical product approval process assessed.
Feb 06, 2025
Germany’s Biotech Sector Enjoys Investment Surge
Germany’s biotech sector enjoyed a significant investment surge last year as it recovered from the worst effects of the global coronavirus pandemic. Over EUR 1.6 billion was invested in the first nine months of 2024 – an increase of almost 70 percent compared to the same period in the previous year. Companies like Ariceum (radiopharmaceuticals for rare tumors), Eisbach Bio (tumor-resistant gene mutation research) and iOmx (cancer immunotherapies) count among the innovative start-ups attracting healthcare VC funding to the country. More investments are set to come with major life sciences VC company Kurma Partners recently announcing a new EUR 250 million biotech fund (Biofund IV) for Europe.
Healthcare VC Increases by 50 Percent
German start-ups received EUR 2.5 billion VC funding in Q3/24 – an increase of 50 percent on the previous quarter according to Handelsblatt. Forty-two of the 290 financing rounds completed during the period were also for healthcare start-ups developing solutions in the life sciences, digital health applications, and new medicines sectors. A recent case in point of this continuing positive trend is Berlin start-up Nelly. The health and FinTech provider raised EUR 50 million in a January series B financing round. The company’s financial operating system for use in the healthcare sector is currently used by over 1,200 medical practices to increase efficiency and digitalize administrative and financial processes.
Pharmaceuticals Key Industry to Germany’s Economy
The pharmaceuticals sector is becoming increasingly important to the German economy according to an analysis conducted by the German Economic Institute (IW). Major pharmaceutical companies have initiated investments worth over EUR 7 billion since last year. The IW study also concludes that the pharmaceuticals industry has grown markedly faster than the automotive and other major industry sectors since the financial crisis of 2008/09.
Germany Rolls Out Electronic Patient Records
Germany has begun the roll out its Electronic Patient Record (ePA) available to all people with statutory health insurance cover from January 15, 2025. The new digital health file will promote the exchange and use of health data in order to provide targeted healthcare support. Part of the Digital Act passed in December 2023, the new digital health card should make day-to-day care easier for both patients and subscribers. From summer of this year, an electronic medication plan will be made available in the EPA as part of a digitally supported medication process. The ePA will be rolled out nationally upon successful completion of the trial phase in the model regions of greater Hamburg, Franconia and parts of North Rhine-Westphalia.
GenAI-Med Supports Authorization Process
As part of the Federal Ministry of Education and Research’s “GenAI-Med” project, Medical Mountains and Fraunhofer IAO are working to investigate the potential of generative AI in the medical product approval process. The project seeks to pave the way to the use of generative AI as part of the medical technology approval process, providing support to medtech companies in order to integrate generative AI into the process. The generated results will be used to formulate the requirements catalogue for a demonstrator.
European Commission Launches MDR and IVDR Public Consultation
The European Commission has launched public consultation to evaluate the efficacy of the EU Medical Devices Regulation (MDR) and the In Vitro Diagnostic Medical Devices Regulation (IVDR). Medical technology providers are invited to assess the practical implementation of the legislation until March 21, 2025. The stakeholder input will be incorporated into the ongoing overall evaluations of regulations 2017/745 (MDR) and 2017/746 (IVDR) to determine whether the regulations are “effective, efficient and proportionate, meet current and future needs, are consistent with other measures, and have EU added value” before revisiting aspects of the regulation that potentially need to be revised.
