German biotech bounces back as confidence returns

German biotechnology has recovered from the economic crisis. The fifth annual survey of the sector by industry association BIO Deutschland and biotech magazine Transkript, which polled almost 200 companies, shows that confidence in the future has rebounded to pre-crisis levels. 57% of biotech firms say their prospects have improved, while 38% expect no change.

The R&D outlook is also more positive. 45% of companies plan to increase spending on R&D, while 49% expect to keep spending stable. This marks the first time in three years that R&D spending has not been set to decrease. The improving business cycle in the pharma and chemical industries is also reflected in hiring intentions. 59% plan to employ more people this year and a mere 3% will axe staff.

There are currently 530 pure biotech firms, mostly small or medium-sized enterprises, employing around 15,000 people; their turnover reached 2.2 billion euros ($2.98 billion) in 2009. Larger companies with biotech interests account for another 16,500 jobs in the industry.