M&A-ActivityIn early <strong>2011</strong> the acquisition of GENEART, Regenburg,trough the Life Tech Corporation was finalized. TheRegensburg site maintains as specific center of competencein synthetic biotechnology and brand-name withinthe Life Tech group. Later in <strong>2011</strong> the more than 200employees of GENEART moved to the third new buildingof <strong>Bio</strong>Park Regensburg.Another takeover hit a traditional bavarian chemicalcompany, Süd-Chemie AG. Clariant AG, Switzerland,acquired the controlling majority in Süd-Chemie AG andfinalized this procedure in late <strong>2011</strong>; the total value of thetransaction was about € 2.0 billion. Süd-Chemie is – alsoin future - an important partner in the <strong>Bavarian</strong> networkof industrial biotechnology, having advanced projects inproducing bio-fuel from straw. The demonstration plantwas just set up in Straubing by the end of <strong>2011</strong>.During the year <strong>2011</strong> two companies within the <strong>Bavarian</strong><strong><strong>Bio</strong>tech</strong> Cluster were sold to other <strong><strong>Bio</strong>tech</strong> companieswith a total deal volume of more than € 30 million. InFebruary <strong>2011</strong>, Evotec decided to acquire all shares ofKINAXO <strong><strong>Bio</strong>tech</strong>nologies, Martinsried. This acquisitionwill complete Evotec’s leading position as a fully integrateddrug discovery and early drug development partner.The company Kinaxo <strong><strong>Bio</strong>tech</strong>nologies has now transformedits name into Evotec Munich AG and will increaseits working force in Martinsried. The second M&A dealwas announced by FEI and Till Photonics. FEI, a leadinginstrumentation company was successful in acquiringTILL Photonics, a Munich based company which developshigh resolution, digital light microscopes and imagingsystems.FinancingThe external financing situation for <strong><strong>Bio</strong>tech</strong> companies isstill very sobering. Especially for drug developmentcompanies, the financing gap in early stage developmentup to clinical phase II increases. New financing modelshave been sprout out during the last year <strong>2011</strong>. Onlyabout € 70 million million in total have been invested bypublic and private investors within the <strong>Bavarian</strong> <strong><strong>Bio</strong>tech</strong>companies. In comparison to the year 2010, the totalamount of follow-on, venture capital investments anddebt financing dropped down by 76%, in a five yearoverview, it represents a reduction by 70%.Venture Capital has decreased dramatically during theyear 2010 with € 49 million, the total sum of venturecapital reduced to the amount of € 28.35 million. Thismeans a reduction by 42% compared to last year and atotal reduction by 63% within 5 years.One of the biggest financing rounds within the <strong>Bavarian</strong><strong><strong>Bio</strong>tech</strong> Cluster has been announced by AMsilk GmbH(Martinsried). The company revealed the closing of theirB-financing round. The investors MIG Fonds 6, MIGFonds 7 und MIG Fonds 11 as well as AT Newtec haveprovided € 5 million for the further commercialization ofAMsilk’s key technology. In addition, the MIG Fonds,together with Global Asset Fund also invested € 8 millionfor Antisense Pharma in Series E round.Furthermore, LipoFIT Analytic GmbH (Regensburg) raised€ 7 million in a second round of financing, which will besupported by SHS Gesellschaft, KfW Bankengruppe,Bayern Kapital and private investors to strengthenLipoFIT’s core business area of human diagnostics,biogas and plant analytics.Regarding the public capital market, especially follow-oninvestments decreased by 81% to € 39.24 million comparedto € 210 million the year before. Only two companies4SC AG (Martinsried) and Agennix AG (München /Heidelberg) completed their capital increases. In February<strong>2011</strong>, 4 SC AG (Martinsried) has gathered grossproceeds of approximately € 11,74 million and placed3,452,647 new shares at a price of € 3,40 per share.In addition, Agennix AG (Munich/Heidelberg) hassuccessfully finished their rights offering andplaced 9,319,504 new no-par value bearershares to shareholders. The companycollected approximately € 11,3 million incash and approximately € 16,2 millionfrom the conversion to equity of anexisting loan plus interest. The contributionin kind was partly done bycompany’s major shareholder,dievini Hopp <strong>Bio</strong>Tech holdingGmbH & Co.KG.24
But there’s some more good news too: The financing gaphas been partly covered by alternative financing sources.In comparison to the decreasing public and privatecapital situation, the deal volume for licensing, commercializationand M&A reached an all-time-high. All <strong>Bavarian</strong><strong><strong>Bio</strong>tech</strong> companies were able to close a all-time highof deals during the last year (see page 22f).Since beginning of October 2010, the Munich <strong><strong>Bio</strong>tech</strong>Region has been awarded for the Leading Edge Clustercompetition by the German Federal Ministry of Educationand Research. Over € 40 million has been contributed forfive years by the German Federal Ministry of Educationand Research; another € 60 million has been provided bythe <strong>Bavarian</strong> Ministry and many industry partners. UntilMarch 2015, the main R&D strategy for all projects willpush Personalized Medicine and Targeted therapies.Furthermore, a number of <strong>Bavarian</strong> <strong><strong>Bio</strong>tech</strong> companiesreceive EU grants for certain R&D topics together withEuropean partners, for example the EUROCALIN Consortium,including ten companies, i.e. Pieris AG (Freising)and universities from across Europe, has initiated acollaboration focused on attaining and completing initialclinical development of a novel Anticalin ® therapeutic.The project will be sponsored partly by the EuropeanCommission Seventh Framework Programme(FP7-Health).EXTERNAL FINANCING AND DEALS1,39 billionMio. €600600610500533400300200151,461,2210,010078,2139,657,5116,2120076,7 3442,22006 200784,0200830,1200949,020,0201040,028,0<strong>2011</strong>Follow-OnIPOVC + Silent PartnershipsFinancing “on demand”closed deals (dotted line)in the respective year only*Loans are not included25
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