Biotech firms in Germany raised notably less money last year than in 2024, according to a report released by the consultancy firm EY and the BIO Deutschland industry association.
Against the backdrop of a weak economy, biotech firms received around €1.8 billion (about $2 billion) from investors and through share issues on the stock market in 2025, 5% less than in the previous year.
Venture capital investments, through which investors take stakes in emerging companies, plummeted by as much as a third to €601 million, according to the study. It found that funding was concentrated on a small number of well-established companies.
“Germany has a problem with the value creation of biotechnological inventions and developments,” said Viola Bronsema, the head of BIO Deutschland.
“Scientific excellence is undisputed, but so far, it has not led to corresponding economic strength.”
According to the study, the turnover of German biotech firms fell by 1% to €12 billion in 2025. The sector employs just under 60,000 people in Germany and includes firms such as Biontech, Qiagen and Evotec.
Spending on research and development also declined. Many biotech firms work on gene and cell therapies, vaccines and antibodies, while some focus on solutions for industry, agriculture and environmental protection.
This is expensive and time-consuming, which is why biotech firms rely on funding from investors, most of whom come from the US.
Without sufficient capital, many young companies struggle to bring their emerging technologies to clinical maturity and are forced to sell to international investors at an early stage or relocate their activities abroad. Germany therefore risks losing talent and intellectual property, the study warns.
~dpa
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