Munich Named Top Location For Biotech And Pharma Industries

Munich named as top location for biotechnology and pharmaceutical industries

The Greater Munich area has seen in the past few years it’s biotech and pharma companies significantly grow in revenue and staff numbers even though they are always facing constant international competition. With this in mind Munich’s reputation as being one of the pre-eminent locations of the future of the biotech and pharma industries. This theory has also been confirmed and reaffirmed by the latest study which has been carried out by the City of Munich, the IHK and BioMGmbHbased on a survey and questionnaire of different businesses as well as industry experts.

Back in 2013, 230,000 people were working in Munich for a total of 377 biotech and pharma companies, its thought from these companies they generated a turn over of 8.5 billion euros, this didn’t include companies from the medical engineering sector.

According to criteria set out by the OECD, around 15 % of German biotechnology firms have their headquarters in the Greater Munich area, with 30 % of the nation’s biotechnological development of drugs taking place here.

This study shows that companies in Munich have done an excellent job of getting through the difficult times and that the international appeal of this location has been boosted even further”, says the Head of the Department for Work and Economy, Mayor Josef Schmid, and he continues: “The economic success of this sector is not only based on an outstanding scientific community but also on recognised and effective management of the network.”

A particularly heavyweight contender is found further South in Penzberg in the form of Roche Diagnostics: these are the largest entities in Europe dedicated to the research, development and manufacture of biopharmaceuticals and diagnostic agents, and with their 5100+ employees they contribute a significant amount to the character of this biotechnology cluster.

According to a ranking of “Genetic Engineering & Biotechnology News, GEN”, March 2014, the greater Munich region ranks within the TOP 9–10 of all listed US clusters when looking at employment, public funding and granted patents!

There is a a very upbeat mood that surrounds the Munich area, within the the pharma and biotech industry and it is predicted that 75% of the the companies that are located in this area, will continue to grow and see improvements over the next three years.

Dr Horst Domdey, Managing Director of BioM Biotech Cluster Development GmbH comments on these results: “The scale of networking between scientific organisations as well as with industry is huge, as the rates of satisfaction reflected in the survey have clearly shown.  That having been said, there is always room for further improvement and we constantly have to respond to new demands. A special challenge lies in introducing the region to notable global trends at an early enough stage, and in developing a solid competitive position as we managed to do in the field of ‘personalised medicine.‘”

This study has shown that companies that are based in this location are highly diversified in terms of science and technology, with them being able to pick up and work with new trends successfully. In recent years a number businesses from around the world including the USA, Japan and India have relocated to Munich, further demonstrating Munich’s appeal as a centre for research, development and sales. This wave of relocation to Munich included Actavis, Exosome Diagnostics, Myriad Genetics, Vertex and Panacea Biotec.

Morphosis is a perfect example of a leading global technology provider, this can’t be denied as they have around 70 research projects with global Big Pharma partners. When thinking about financial volume; huge business acquisitions over the last few years, have in fact not led to expertise being sold off, but instead new parent companies being encouraged to forge even stronger ties with Munich.

Since its takeover of the biotech company Micromet, the research facility run by Amgen in Munich is now their largest outside of the USA. Daichii Sankyo has commissioned the development of its biotechnological oncology pipeline in Martinsried and has laid the foundations for this by acquiring U3 Pharma.

Alex Carson

PiR Resourcing leaders in senior life science resourcing. For more news and information, you can follow us on Twitter and LinkedIn.  For all our latest opportunities in the Life Science sector please click here.

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