Commercial biotechnology in Germany: An overview

Siegfried Bialojan
Julia Schüler

DOI:https://doi.org/10.5912/jcb50

Abstract:

The title of Ernst & Young's 2003 Biotechnology Report, 'At the Crossroad', describes the present situation of the German biotechnology industry. This paper discusses and analyses the major findings of the Report. Major drivers in the current development include external factors such as the general economic downturn, the closed capital markets and the resulting consequences with respect to the financing situation. In addition, the pharmaceutical industry – the major client for the emerging biotechnology companies – erects higher hurdles by refocusing on later stage products with blockbuster potential. These factors are mostly identical in all regions of the globe. However, they hit the biotechnology industry in Germany relatively harder as it is still relatively young and therefore more vulnerable.

In fact, the maturation process of the German biotechnology industry has been abruptly stopped. Unfortunately, this takes place at a time when the dynamic development during the past five years has not yet created a substantial number of stable and mature companies. Critical mass has become a major issue.

Keywords:Germany ,industry data ,business model ,finance ,en ,