Leipzig Area Biotech Startups Seen as Economic Engine for Leipzig-Halle Region

Between 1995 and 1999 the number of biotech companies in Germany jumped by 300 percent. This growth is concentrated among biotech “clusters” that have developed near several major cities, including Munich, Berlin, and in southwestern Germany along the Rhine River.

The biotech cluster in the German Free State of Saxony is relatively young and none of the companies there, so far, are listed on the stock exchanges. Major growth and profitability in biotechnology is anticipated over the next two to three years according to Mr. Hedrik Liegers, Associate Director of Sachsen LB Gruppe, a venture capital company in Leipzig.

The German government has served as a catalyst for much of the growth. In 1996, a government-sponsored competition was held to determine where the best places to promote the biotech industries in Germany were. The Thuringian town of Jena won a prize for its focus on life sciences instrumentation. The Dresden area was recognized for its strengths in the field of bio-informatics.

The Leipzig-Halle region was also recognized as a good place to invest public dollars to support private startup biotech companies. Since then, nearly forty small and mid-sized biotech companies have formed in the Leipzig-Halle area that fall into three general categories:

• Pharmaceuticals – Working with substances that target only certain enzymes

• Tissue engineering – Using stem cells to regenerate and restore tissues and organs

• Plant biotechnology – Advanced breeding technologies and new pest-resistant plants

A major factor in the rapid development of biotech startups in the Leipzig region has been public support for the creation of “incubator” space. These concentrated areas are designed to help young companies through the high risk early phase of development. Some of these incubator centers include: Business & Innovation Center Leipzig – a public-private center devoted to supporting biotech, environmental and high tech entrepreneurs. The Center, headed by Ms. Anette Ehlers, provides assistance in securing venture capital, office and lab space. It helps with consulting and facilitates contacts with other businesses and government agencies. See www.bic-leipzig.de. BioRegion Halle-Leipzig Management GmbH – an organization based in the town of Halle provides incubator support for startup companies pursing drug development, plant biotech and tissue engineering. CEO Uwe Schrader points out that much of the innovation and new research is fueled by the center’s proximity of the universities in the area, such as Martin-Luther University. In addition, the universities of Halle-Wittenberg and Leipzig are traditional centers for medical, drug, biochemical and chemical research. See www.bioregion-halle-leipzig.de/bioregion.htm. Biotechnology-Biomedicine Centrum (BBZ) – When completed in 2003, this ultramodern research center will offer scientists and startup companies the facilities and support needed to assist them in developing and commercializing new products. See www.bio-center-leipzig.de.

Tissue engineering has been the focus of developers around Leipzig University. Special know-how has been developed for the applications that treat cells outside the body, reproduce cells or improve the functions of cells. With the help of cell and organ cultivation, damaged tissues or organs can be replaced and repaired.

One Leipzig firm, Vita 34, has developed a process that involves storage of samples of one’s own blood. The process uses stem cells in the blood sample to identically reproduce one’s own blood when needed in a future medical emergency.

Other new processes that are being developed by companies in the region include: Cell cultivation systems for patient specific cellular cancer therapy systems for the production of monoclonal antibodies; research into the establishment of hybridomas (generating hybrid cells that can produce single types of antibody molecules). Civic leaders and private investors alike are openly optimistic about the future of biotech in the Leipzig-Halle region. Drawing upon seven universities and colleges, six internationally recognized research institutions and a long local tradition of scientific achievement and innovation, startup biotech companies are estimated to generate up to 30% of all newly created jobs and to make a significant contribution to the regional economy in the years ahead.—