The Medical Biotechnology Industry in Germany
Germany’s biopharmaceuticals sector increased turnover by 10.5 percent in 2022 compared to the previous year.
Medical biotech nation Germany
Germany is the world’s leading medical biotech nation behind the US. The industry’s strength comes from the presence of long-established and start-up companies alike. Industry, government, and the research sector are pulling in one direction to build on the thriving sector’s already strong market foundations. With the largest amount of biotech companies in Europe, world-class research infrastructure, and internationally renowned scientists, Germany has firmly established itself as an international medical biotechnology hub.
Innovation infrastructure
Science and industry need to work together closely in order for innovations to be commercialized successfully. German bioclusters are proving to be important new technology impulse givers in this respect.
Germany's bioregions
The BioRegions are regional initiatives for the advancement of modern biotechnology in Germany. Over the past three decades, these biotechnology clusters have developed to become Europe’s leading R&D hubs. Each region facilitates collaboration between universities, R&D institutes and private sector companies. Around 30 BioRegions are active members of AK Bioregio, whose goal is to advance the German biotechnology sector by coordinating and promoting local activities. AK BioRegio advances the exchange between regional initiatives and relays its expertise to political decision makers.
Investors benefit from easy access to networks and funding for research projects. The BioRegions also include technology parks tailored to the specific needs of biotechnology companies. Commonly known as BioParks, these centers offer an ideal infrastructure - including lab space and clean rooms - as well as a range of services for both start-up and well established companies.
Growth drivers: IVD & molecular diagnostics
In-vitro diagnostics (IVDs) are a crucial part of modern medicine: laboratory based tests performed on biological samples provide information that is key for the prevention, treatment and management of diseases. Today, 70% of all clinical diagnoses are made thanks to IVDs. With more than EUR 6.3 bn in annual revenue in 2021 (EUR 4.1 bn for corona testing and EUR 2.2 bn in other diagnostics), Germany represents the largest IVD market in Europe and second worldwide behind the USA.
Rapid covid testing as the largest growth sector of the IVD industry in 2021: This market segment alone is with EUR 3.67 bn market volume larger than the whole pre-pandemic IVD industry which accounted to EUR 2.2 bn.
Diagnostic Industry Revenue in EUR Million | © Medtech Europe IVD Market statistics: IVD market 2018
Growth drivers: biopharmaceuticals market
Big pharmaceutical and smaller biotechnology companies alike are focusing on drug discovery and development of medicines produced by biotechnological processes.
Small molecules are moving to the background in medicine development as the result of a major paradigm shift to biopharmaceuticals. This is reflected by the increasing sales of biopharmaceutical products worldwide.
According to a report by Healthcare research service provider IQVIA, sales of biopharmaceuticals in Germany increased to EUR 17.8 billion in 2022 (growth of 10.5 percent compared to 2021). Growth was seen in nearly all fields of application, particularly in drugs treating immunological (e.g. rheumatic) as well as infectious diseases and cancer.
The number of biopharmaceuticals in clinical development increased from 657 in 2020 to 672 in 2022, reflecting continued high investment in the biopharmaceutical pipeline.
In 2022, a record-breaking 59 percent of all new drug approvals were biopharmaceuticals – more than ever before. By the end of 2022, a total of 398 biopharmaceutical drugs were approved for the German market. Divided into pharmacological classes, vaccines and monoclonal antibodies are leading in numbers with a combined 56 percent of all approvals.
Download our latest The Pharmaceutical Industry in Germany Industry Overview for more information.
Download our latest Industry Overview The Pharmaceutical Industry in Germany for more information.
Biopharma in Germany
Ever since the early 20th century, Germany has been known as “world’s pharmacy.” The legacy continues with the success of German companies including BioNTech, Boehringer Ingelheim, and Merck as well as multi-billion investments by leading international companies every year. Its leading position in the biotechnology and pharmaceuticals industry make Germany highly attractive for innovative companies focused on biopharmaceuticals. Where is this crucial health sector headed? And how can your business benefit? Our video has some answers.
Do you think your company could benefit from being part of the biotechnology ecosystem in Europe’s largest economy? Germany Trade & Invest can help – totally free of charge. Get in touch: www.gtai.com
