German biotechnology sector optimistic over 2008 outlook

German biotech companies are starting 2008 on an optimistic note, according to a survey carried out by the German biotechnology trade association, BIO Deutschland, in co-operation with the biotech journal, transkript.

A majority (61%) of the German biotech companies that took part in the survey said their current business situation was good, while a third of the companies regarded their situation as "satisfactory".

More than half (55%) were also positive about their medium-term future. This leads to a very positive employment outlook: 72% of the companies also want to hire more personnel in 2008.

However, according to the results of the survey, r&d investment will show a slower increase less than in the previous year: while 56% of the respondents planned to spend more in 2007, only 47% plan to do so in 2008.

Moreover, the assessment of the business climate is less positive than in 2007 - most of the companies regarded it as "satisfactory" (56%), 16% as bad and only 28% as good. Only 43% believed that the general conditions would improve, compared with 54% in 2007, while the percentage of those who expected that the business climate will not change in the future increased by 10 percentage points to 50%.

"In the past years, German companies have increasingly established themselves strongly and have adapted their business models," said Jens Katzek, a member of the board of BIO Deutschland. But he added that the results of the survey also serve as a reminder of the need to improve the political and economic conditions.

"Half of economics is psychology - bad news from the high-risk sector of drug development naturally has a negative effect on the business climate for a while," pointed out Andreas Mietzsch, chairman of the board of BIOCOM and editor of transkrip. "But this doesn't change the fact that biotechnology is on a steep growth curve and that its innovative and environmentally friendly products are successful in more and more economic sectors."