Medical Biotechnology Industry

1. 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 percent of all clinical diagnoses are made using IVDs. With more than EUR 6.3 billion in annual revenue in 2021 (EUR 4.1 billion for corona testing and EUR 2.2 billion in other diagnostics), Germany represents the largest IVD market in Europe and the second worldwide behind the USA. 

2. Biopharmaceuticals Market  

   Big pharmaceutical concerns 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 19.2 billion in 2023 (growth of 7.9 percent compared to 2022). 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 show the way with a combined 56 percent of all approvals.  

    

Business Environment for Germany’s Medical Biotechnology Industry 

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. 

Factsheet Biotechnology Clusters in Germany and Council of German BioRegions 

Biopharma in Germany 

Germany has enjoyed a reputation as the “world’s pharmacy” for around a century. The legacy continues into the present day with the success of German companies including BioNTech, Boehringer Ingelheim, and Merck – as well as multi-billion investments by leading international companies every year. Germany’s leading position in the biotechnology and pharmaceuticals industry make it a highly attractive location for innovative companies focused on biopharmaceuticals.  

Could your company 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.