In their 9th German Biotechnology Report, the industry experts from Ernst & Young paint an essentially confident picture of the German biotech industry. However, despite the general optimism, the picture has a few negative points: no company will go public in 2008 and with only ten newly founded companies in 2007, the German biotech industry has reached a historical low.
In contrast to the previous year, equity capital financing of the German biotechnology sector has improved slightly, so the report states (increase to 456 million euros). Risk capital financing increased by 50 per cent (213 to 319 million euros). However, 2007 was a very black year for biotech companies on the capital market. After four IPOs in 2006 and twelve secondary financing rounds, not one single biotech company in 2007 dared to go public. In the case of eight secondary financing rounds, the stock market-listed biotech companies borrowed a total of 137 million euros. Thus, the volume of equity capital borrowed from the capital market dropped from 220 to 137 million euros.The global biotechnology report had not been published at the time of the editorial deadline. However, according to Ernst & Young’s German press office, the consulting company does not expect huge differences from previous years’ trends. The older and more mature biotech industry in the USA, and to a similar degree also that in Great Britain, is a lot more successful than the German biotech industry.