R&D investment in the biotech sector grows by 5.2% to 1,282 million euros

AseBio presented the AseBio 2024 Report ‘Towards a more competitive Europe’ on Wednesday 11 June at the Beatriz Madrid, with the support of Amadix, MSD, Oryzon Genomics and Tebrio as main collaborators. This year, in addition to compiling the main indicators of the biotech sector in Spain, the Report offers a detailed vision of how national biotech innovation is driving European competitiveness. Through the voices of leading companies and organisations, it shows the advances and key contributions that position our country as a relevant player in the European innovation ecosystem. Through the voices of leading companies and organisations, it shows the advances and key contributions that position our country as a relevant player in the European innovation ecosystem.

"Biotechnology is a strategic asset for building a more competitive, sustainable and autonomous Europe. From Spain, we are demonstrating that our companies can be a key driver of this process, generating innovative solutions in health, food or sustainability, attracting international investment and creating highly skilled jobs," says the president of AseBio, Rocío Arroyo.

"Now we need Europe to accelerate its commitment to biotechnology, ensuring adapted regulatory frameworks, better connecting talent with industry and providing adequate funding to support the sector's high R&D intensity. Spanish biotech is ready to lead this effort, but we need a firm commitment from the institutions to ensure that Europe can offer sustainable and effective solutions to major global challenges," adds Arroyo.

In 2023, the activity of biotech companies in Spain generated more than 13,000 million euros of income, which represents 1.1% of the national GDP. Tax revenue has reached 5,229 million euros, representing 0.4% of GDP. It should be noted that in 2023 the global turnover of biotech companies has experienced a correction of the impact generated during the years 2021 and 2022 due to the commercialisation of vaccines against Covid-19. This translates into a decrease in their impact on total production of around 25% in 2023 compared to 2022.

Biotechs contribute 131,214 employees, i.e. 0.67% of national employment. Productivity per employee in these companies is three times higher than the national average, and with a salary per employee that is double the national average.

"The regulatory changes we are experiencing, both at national and European level, represent a strategic opportunity to strengthen the role of the biotechnology sector and bioindustry as drivers of health transformation, competitiveness and industrial resilience. Initiatives such as the Industry and Strategic Autonomy Act and the creation of RECAPI are key to reducing foreign dependence and strengthening our production capacities. At MSD, we are materialising this through investments such as our production plant in Salamanca, dedicated to the manufacture of critical veterinary medicines, which embodies the One Health approach, and MSD's commitment to a national industry that is innovative, autonomous and prepared for present and future challenges. This is the only way to consolidate Europe as a global benchmark in research, development and innovation," said Cristina Nadal, Executive Director of Government Affairs for MSD in Spain and Second Vice-President of AseBio.

The biotech sector raises 181 million euros in 2024

After an exceptional 2023 for the sector in terms of attracting investment, in 2024 it raised a total of 181 million euros in 53 deals. Although these figures represent a decrease in the total volume raised compared to the €228 million in 2023, it is important to note that there has been a significant increase of 26% in the number of deals.

As a result, the average volume per transaction is down considerably by 37% from EUR 5.4 million in 2023 to EUR 3.4 million in 2024.

The volume of investment raised in capital increase transactions involving international investors reached EUR 64 million. In 2024, eight companies were backed by investors from countries such as Canada, Chile, the Netherlands, Japan, Denmark and the United States.

The biotech has raised more than 6.3 million euros through crowdfunding and the financial instruments of the European Investment Bank and Enisa, which have positioned themselves as key players in financing biotechs.

‘The closing of the largest financing round in 2024 with €30 million allows us to build the largest industrial plant of Tenebrio molitor in Europe and multiply our production capacity,’ shared Adriana Casillas, CEO and co-founder of Tebrio. "This milestone positions Tebrio and Spain as European leaders in innovation and alternative protein production, reinforcing our commitment to sustainability and strategic autonomy in the food of the future. Moreover, this investment boosts technological development and the creation of skilled jobs, helping to consolidate a competitive biotech ecosystem aligned with the European objectives of circular economy and food safety," adds Casillas.

R&D investment increases by 5.2% in 2023

In 2023 the biotech sector invested 1,282 million euros in R&D, which represents an increase of 5.2% over the previous year. Biotechs invested 865 million euros in R&D, of which 68% was financed with their own funds and 45% went to pay research and technical staff. They are followed by funds from the business sector, with 12%, and funds from the public administration with 9%.

Biotechs are in fourth place in terms of R&D investment intensity, behind only R&D services, education and other transport equipment.

"Cutting-edge research in targeted and advanced therapies, such as epigenetics, is essential for the development of a new generation of drugs that patients with cancer, mental illness and many other diseases urgently need. This is a high-risk, high-cost investment, but absolutely crucial for the health of the future. It is also a strategic pillar to strengthen Europe's competitiveness, autonomy and technological sovereignty in the biomedical field," says Carlos Buesa, CEO of Oryzon.

Science-intensive sector and researcher recruitment

Once again this year, biotech companies maintain their second position in the ranking of sectors with the highest percentage of researchers out of the total number of employees, with 15.99%, behind only R&D services companies.

The report shows that in 2023, Spanish scientific production in the area of biotechnology knowledge represented 2.49% of global production. Moreover, it is cited 20% more than the world average. These figures place Spain in ninth position globally in terms of the number of papers in biotechnology.

The number of people enrolled in master's or bachelor's degrees in biotechnology continues to increase every year. Since the 2015-2016 academic year, the number of students enrolled in university studies in biotechnology bachelor's or master's degrees has increased by 36%. In 2023-2024, the latest period with available data, 9,798 students have enrolled in master's and bachelor's degrees, 62% of whom are women.

Since 2010, biotech companies have maintained the percentage of female representation above 50%. In addition, 60% of the personnel dedicated to R&D activities in biotech companies are women, and women represent 29% of the management teams of biotech companies.

"Biotech companies in the healthcare sector, such as Amadix, generate highly skilled jobs by employing experts in Big Data and Artificial Intelligence. Top talent working in critical areas such as precision oncology, which is fundamental for its impact on public health, healthcare costs and innovation potential, contribute from Spain to boost European competitiveness in these key areas of healthcare," said Elena Sánchez-Viñes, Chief Operating Officer of Amadix.

The sector already has more than 1,000 “biotech” companies

The number of biotech companies in Spain grew in 2024 to 1,014 companies, an increase of 4.1% over the previous year. A snapshot of the biotech business fabric in Spain reveals that 52% of these are micro-SMEs and 43% are SMEs.
By number of companies, Catalonia maintains its leadership with the largest number of biotechnology companies: 24.56% of the total. It is followed by the Community of Madrid (17.95%), Andalusia (12.52%), the Basque Country (9.57%) and the Community of Valencia (8.78%).

Human health continues to be the main area of activity of biotech companies, with 58% of the companies. This is followed by food companies with 27%, agriculture and forestry production with 17%. Animal health and aquaculture with 15%, environment with 12% and lastly industry with 10%.

Finally, partnerships continue to grow in 2024 to 335, of which 242 are with public entities and foundations.

"From the Ministry of Science, Innovation and Universities we are promoting key measures to strengthen the biotech ecosystem in Spain, such as the new public-private partnership for advanced therapies or the “Innvierte Deep-Tech Transfer” instrument, are examples of our commitment to innovation. In addition, joint work with the CDTI and dialogue with agents such as AseBio are allowing us to better align our policies with the real needs of the sector. The strong weight of biotechs in calls such as Missions, Neotec or Public-Private Partnerships demonstrates their strategic role for the country and our will to continue supporting their development", concluded the presentation Teresa Riesgo Alcaide, Secretary General for Innovation of the Ministry of Science, Innovation and Universities.

We would like to thank all the collaborators who made this AseBio Report possible: 3PBIOVIAN, Amadix, Amgen, BTI, Certest, Konexio Biotech, MSD, Oryzon Genomics, Madrid Region Science Park, Promega, SMED, Tebrio, Vicomtech, and VIVEbiotech.