Company Development COMPANY DEVELOPMENT Strong Growth in Employment Number of Companies In 2019, a total of 400 companies were operating in the biotechnolo- gy and pharmaceutical industry in Bavaria. The pharma group (total- ing around 60) includes traditional pharmaceutical companies that have existed in Bavaria for decades, global players such as Astel- las Pharma, GSK, Baxter, Daiichi Sankyo, Merck, Sharp & Dohme (MSD), and others that have their German or European headquarters in the region. Another important pillar of the biopharma ecosystem comprises 66 contract research organizations (CROs) which contribute with their expertise to preclinical research and develop- ment or analytics as well as in setting up and monitoring clinical trials. These organizations are service providers for both local and international drug developers, making Munich a leading center for clinical trials and drug development. “Deeply rooted in science and building on our strong development expertise, MorphoSys is highly committed to making exceptional, innovative biopharmaceuticals to improve the lives of patients suffering from serious diseases. Truly living up to the origin of our name – Metamorphosis - we are successfully transforming from a leading technology provider into a fully integrated biopharmaceutical company, mastering every step of the value chain from research through clinical development to commercialization. Our people come from around the world and are highly diverse, creating a multicultural and inspiring environment right in the heart of Bavaria and in Boston, Massachusetts, U.S.A. Our culture embraces change. Our aspiration and purpose is to improve the lives of patients and their loved ones globally.” s y S o h p r o M © DR. JEAN-PAUL KRESS CEO, MorphoSys The Bavarian sector is particularly strong in terms of small and innovative drug developers – this group is the main focus of our daily activities and the facts and figures in this annual report. Bavaria counted 244 biotech companies in 2019, an increase of four compared to 2018. The unprecedentedly large number of 15 newly founded companies in 2019 compensated very well, or even over-compensated, for those that were closed, acquired, or relo- cated. These 244 biotech companies comprise 185 Bavarian (with 8 8 Biotech in Bavaria - Report 2019/20 Biotech in Bavaria - Report 2019/20 headquarters in Bavaria) and 59 international companies (subsidiaries of foreign parent companies). We will take a closer look at these companies with respect to employee numbers, financial highlights and drug pipelines in the following chapters. Bavarian biotech SMEs are the main target group of BioM’s networking activities and funding initiatives. These companies focus on the development of new therapeutics and diag- nostics, a field in which roughly 66 companies are active. The area is further strengthened by 39 providers of technology platforms, mainly assisting drug development. As digital technol- ogy is a main driver in health innovation – and not everything can be categorized as ‘bioin- formatics’ – many new companies working in ‘digital health,’ accounting for 23 in total, have been added to this category. Likewise, the area of biotech devices and reagents is highly advanced and features 27 companies delivering specialized laboratory equipment, assay systems and measuring instruments for research, among other things. In addition, biotech SMEs are active in the fields of industrial biotechnology (22), agricul- ture, food, and other specific areas. Lastly, 30 suppliers of materials such as lab, electronics or microscopy consumables complete our ecosystem. Newly founded Companies In 2019, the momentum for start-ups in Bavaria was very strong. Overall, the number of new companies in the biotech/pharma arena reached an all-time high of +16 (one of which was ‘pharma,’ so our ‘biotech’ community grew by 15 new members). Only one of the 15 biotech additions entailed a relocation: Ipsen Pharma chose Munich as the new site for its German headquarters; 14 genuinely started from zero, supported by many helping hands and organi- zations. The BioM network is renowned in this regard, connecting scientists, founders, expe- rienced entrepreneurs, investors, lawyers, real estate and many other qualifications for getting a new venture started (an introduction to all the advisory services offered by BioM can be found