Biotech in Bavaria: Record investments and stable development

• Record financing of over 910 million euros
• Slight increase to 540 biopharma companies
• 18 start-ups and new settlements show strong start-up momentum in Bavaria
• Employment remains stable at 57,000 in the biopharma sector
• Oncology remains the most important indication in drug development
• Continued positive outlook for the future – especially in the medium term over the next 3 – 5 years

Martinsried/Munich, June 3, 2025 – The new Bio^M annual report Biotech in Bavaria 2024/25 – One World for Innovation shows: Bavaria’s biopharma sector sets a new record with over 910 million euros in financing – almost double the previous year’s figure. The number of companies rises slightly to 540, 18 new start-ups and new settlements underline the start-up dynamics in Bavaria. With a stable 57,000 employees and a clear focus on oncology, the industry is optimistic about the next three to five years despite the challenges.

Bio^M presented its annual report “Biotech in Bavaria – One World for Innovation” in Martinsried together with Dr. Manfred Wolter, Ministerial Director at the Bavarian Ministry of Economic Affairs.

Record financing: almost one billion euros flow into the biopharma sector

Bavarian biopharmaceutical companies achieved record financing of over 910 million euros in 2024 – almost double the previous year’s figure of 470 million euros. Four companies raised around 60% of the funds via venture capital: ITM: 188 million euros (Munich), CatalYm: 139 million euros (Martinsried, IZB), Tubulis: 128 million euros (Martinsried, IZB) and SciRhom: 63 million euros (Martinsried, IZB).

In addition, radiopharmaceutical company Pentixapharm successfully went public on the Frankfurt Stock Exchange, generating gross proceeds of around EUR 20 million.

Billion-euro investments in the site

Significant investments were made in the expansion of the research and development infrastructure in the Bavarian biotech region. For example, Roche opened a new center for the development of gene therapies in Penzberg – another milestone for Bavaria. In addition, the symbolic ground-breaking ceremony was held for a new production center for diagnostics, which will be built with an investment volume of around 600 million euros.

Also in Pfaffenhofen / Ilm, there is further investment: Daiichi Sankyo plans to invest around one billion euros in the expansion of its site north of Munich into a leading innovation and production center in the coming years.

In Oberschleissheim, north of Munich, a new life science cluster is being realized on an area of 15 hectares. The ONE Health & Technology Cluster is specifically designed for cutting-edge research in the fields of medicine, medical technology, biotechnology, pharmaceuticals, medical devices and IT. Construction is scheduled to begin in 2025/2026, with completion scheduled for 2027. The facility will cover up to 250,000 square meters.

Number of companies and employment remains stable

In 2024/25, the number of biotech and pharmaceutical companies in Bavaria, including CROs (Contract Research Organizations) and other companies (e.g. CMOs, suppliers, reagent and technology providers) increased by 2.5% to 540. This upward trend is primarily attributable to the CRO sector. After a year of consolidation in 2023/24, the number of contract research organizations increased from 54 to 67. The number of employees remains largely stable at 57,000 (-2%) – despite a difficult market environment, with biotechnology companies recording a decline from 29,500 to 27,000. This development is almost offset by an increase in the number of employees in the pharmaceutical sector and among CROs. With 27,000 employees, the 313 biotech companies remain the most important employers in the sector.

Strong start-up momentum – opening of the Bio^M Incubator MAxL

The total number of start-ups and new establishments rose significantly year-on-year from 13 to 18. 14 new start-ups are a clear sign of the high start-up momentum in Bavaria.

In order to translate the great economic potential of excellent Bavarian cutting-edge research into marketable innovations more effectively in the future, targeted support is needed for spin-offs in the early stages.

This is where Bio^M comes in with its pre-seed and start-up incubator MAxL (Munich Accelerator Life Sciences & Medicine). With the incubator, which opened in June 2024, BioM is creating a specialized environment for early-stage biotech and healthtech projects. MAxL not only offers access to customized infrastructure and individual support, but also to Bio^M’s top-class network of experts – with the aim of effectively supporting start-up projects from the initial idea to the successful establishment of the company.

With Daiichi Sankyo as a Golden Ticket sponsor, a selected start-up team is given the opportunity to work on its research work for one year free of charge in the state-of-the-art laboratory and co-working space of the Bio^M start-up incubator MAxL and to further develop its project in a targeted manner.

This targeted support from a leading company in the international pharmaceutical industry underlines the growing importance of Bavaria as a biotechnology location.

Oncology remains the most important indication in drug development

The pipeline of the Bavarian companies comprises over 160 projects from research & development (R&D) to clinical phase III. While projects in preclinical and clinical phases II and III are declining, the R&D area has increased, as have clinical phase I projects.

As in previous years, the focus is on cancer therapeutics, which represent more than half of all projects, followed by therapeutics for the central nervous system, infectious diseases and autoimmune diseases.

Optimistic outlook

In a survey, Bio^M asked the companies in the Bavarian Biotech Cluster about their current business situation and how they assessed the future of their company. According to the survey, 55% of respondents rate their current business situation as good or very good (-16%). Looking ahead, 49% of respondents are positive about business development until the end of 2025, while 48% do not expect any changes. In the medium term over the next three to five years, even 75% expect an improvement.

Success stories – Interviews – Company directory

The Bavarian Biotech Report also highlights the perspective of various players in the industry in interviews, shows success stories of start-ups, activities of Bio^M and other clusters and reports on the Bavarian biotechnology locations. As usual, the report is supplemented by the current and constantly growing company directory with profiles and contact details..

The Report Biotech in Bavaria 2023/24 is available as ePaper or as pdf or for download at: www.bio-m.org/zahlen-und-fakten/publikationen. A print version is available from Bio^M.

About the report Biotech in Bavaria

As the network organization of the biotechnology industry in Munich and Bavaria, BioM annually compiles the report Biotech in Bavaria regarding the development of the Bavarian biotechnology and pharmaceutical industry on behalf of the Bavarian Ministry of Economic Affairs. The report includes current industry figures, trends and selected examples of innovative strength from science and entrepreneurship.

About Bio^M

Bio^M has been the network organization for the biotechnology industry in Munich and Bavaria for 25 years on behalf of the Bavarian Ministry of Economic Affairs. Bio^M supports the Bavarian biotechnology and pharmaceutical industry with an extensive network for the initiation of new business contacts. The cluster management offers interested parties from Germany and abroad centralized access and a wide range of information about the industry. Bio^M provides comprehensive advice and special coaching, training and mentoring programs especially for prospective company founders. With its incubator MAxL (Munich Accelerator Life Sciences & Medicine), Bio^M also offers optimal conditions for pre-seed projects and early-stage start-ups in the biotech and healthtech sector. Bio^M has also been coordinating the m⁴ Award pre-seed competition in the field of biomedicine since 2011, which is funded by the Bavarian Ministry of Economic Affairs with a total of 2.5 million euros. In total, Bio^M has supported over 250 start-ups. In addition, Bio^M organizes a wide range of training courses, events and network meetings.

More information at: www.bio-m.org

Press contact Bio^M

Bio^M Biotech Cluster Development GmbH

Gabriele Klingner
E-Mail: klingner@bio-m.org

Christiane Proll
E-Mail: proll@bio-m.org

Am Klopferspitz 19a (IZB West II)
82152 Martinsried
Tel: (+49) (0)89 / 89 96 79 -15
Mobil: (+49) (0)178-5784263

www.bio-m.org