Börse Express – Biotech industry raises a lot of money

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FRANKFURT (dpa-AFX) – The German biotech industry collected billions from investors again last year. After a financing record in the corona pandemic in 2020, the companies received 2.4 billion euros and thus recorded the second-best annual result of all time, shows a new study by the consulting company EY. “So the flight continues, albeit slightly slowed down,” it said. In the crisis year 2020, the young industry had lighthouses like the Mainz-based vaccine manufacturer Biontech
raised a peak value of 3.1 billion euros in fresh money.

Biotech companies work on complex active ingredients and therapies and also contribute technologies in chemistry and agriculture. This is expensive and time-consuming, which is why biotech companies depend on money from investors such as venture capital funds.

In the past year, listed biotech companies from Germany like Evotec employed Biontech and Qiagen
according to EY around 17,300 people, a fifth more than in the previous year. Sales increased almost sevenfold to a good 22.2 billion euros – but driven by the success of Biontech with 19 billion euros alone.

In 2021, the German biotech industry recorded declines in venture capital and follow-on financing as well as convertible bonds. However, four IPOs, including a secondary listing of Evotec on the US technology exchange Nasdaq, brought in 667 million euros.

Although individual companies such as Biontech or Curevac
from Tübingen continues to have a disproportionate influence on the industry, but unlike in the past, individual events no longer determine the financing figures alone, explained Alexander Nuyken, partner at EY, on Thursday. “This is a clear sign of the stability of the industry and the confidence of the market in the company.” Investments are now more evenly distributed across the industry. German biotech companies are also increasingly appearing as buyers.

Although the biotech industry in Germany is growing, it lags far behind the USA in terms of venture capital. Many companies are also drawn to America for IPOs in order to get closer to investors./als/DP/jha

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AXC0137 2022-06-09 / 11: 40

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