Translated from Tagesspiegel’s report. Find the original German version here.

Dr. Thomas Meins, head of WuXi AppTec’s Munich site, recently spoke at this year’s BayOConnect about the role of CRDMOs and how to align scientific vision with investor interests. A good reason to take a closer look at the growth dynamics of the Munich ecosystem and how global partners like WuXi AppTec are supporting this process.

Where does Munich stand on the biotech success curve?

The growth of emerging innovation hubs rarely follows a linear path — it often takes years of groundwork before a region truly takes off. Munich has successfully completed this maturing process in recent years: with over 520 biotechnology and pharmaceutical companies and a dense network of service providers, the region is now one of the most dynamic biotech hubs in Europe. The big question is: when will the actual growth phase begin — the moment when scientific strength, entrepreneurial expertise, and capital inflow translate into measurable market and innovation growth?

Many refer to this as the ‘hockey-stick growth’ — a sudden surge following a longer preparatory phase.

The conditions could hardly be better: Munich impresses with an exceptional density of academic excellence. Institutions such as LMU, TUM, Helmholtz Munich, Fraunhofer, and the Max Planck Institutes stand for top-tier research and international appeal.

Added to this is a growing number of ambitious biotech start-ups and sharply increasing investments. This development is supported by specialized cluster initiatives like BioM, the organizer of BayOConnect, which provides targeted support to founders.

“German biotech start-ups raised around 900 million euros in venture capital in 2024, twice as much as the previous year,” quotes Dr. Thomas Meins from the BioM Annual Report 2024/25. “A large part of this flowed into the Greater Munich area. That shows: the ecosystem is ready for the next step.”

What distinguishes successful biotech hubs?

Looking at internationally successful biotech centers like Boston, San Francisco, Cambridge (UK), or San Diego reveals common features: not only excellent research and an active investor environment, but also powerful, integrated service structures. Contract Research, Development and Manufacturing Organizations (CRDMOs) play a central role.

“CRDMOs are a crucial component of functioning ecosystems,” says Dr. Meins. “They give young companies access to industrially established research, development, and manufacturing structures without having to make massive investments from the outset.”

The CRDMO model: Enabler rather than mere service provider

WuXi AppTec has been a key driver of the CRDMO model. The idea: research (“R”), development (“D”), and manufacturing (“M”) are not offered in isolation, but combined in an integrated service model. The result is a seamless transition from the laboratory to clinical application, including regulatory advice, technology platforms, and global production capacities.

“We see ourselves not just as a service provider but as an enabler of innovation,” emphasizes Dr. Meins. “Our mission is to help our customers reach the market faster, more safely, and more successfully, while offering investors the scalability and planning certainty they need.”

The CRDMO approach reduces development risks, shortens time-to-market, and makes young companies more attractive to investors. In this way, it contributes directly to the success of biotech innovations — not only technologically but also economically.

Munich as a strategic location

As early as 2016, WuXi AppTec showed its confidence in the Munich location by acquiring the drug discovery service provider Crelux, a specialist in biophysical and structure-based drug discovery. Today, the Munich site, established nearly 20 years ago, has been expanded and focuses on early-stage drug discovery, particularly in crystallography, protein biochemistry, and biophysics.

Equally important is the high quality that WuXi AppTec delivers to the industry. This year, WuXi AppTec’s Munich site successfully passed the GMP inspection by the BfArM and received the Manufacturing/Import Authorization (MIA) as well as EU-GMP certification. This milestone marks the official launch of WuXi AppTec’s EU release services, also known as Qualified Person (QP) services. This enables simplified import for biotech companies with EU-oriented programs and shortens the time to patient access.

As the “R” site (research) in WuXi AppTec’s global CRDMO network, Munich’s research expertise complements the strengths in “D” (development) and “M” (manufacturing) of other sister sites — such as the expanding production facility in Switzerland.

In May 2025, ground was broken for a new spray dried dispersion (SDD) manufacturing building at the Couvet site in Switzerland. Operations are expected to start in the fourth quarter of 2026. The facility will help improve the bioavailability of poorly water-soluble compounds. By combining Munich’s discovery expertise with Switzerland’s production capacity and all other required capabilities, WuXi AppTec offers European biotech companies faster market access — thereby strengthening local innovation capacity.

“WuXi AppTec has been firmly anchored in Munich’s research landscape for many years. We have been expanding our expertise worldwide for years while continuing to grow locally,” says Dr. Thomas Meins. “Today we want to attract more biotech companies into our orbit and jointly contribute to the strength of the ecosystem.”

With around 6,000 active customers worldwide, ranging from small start-ups and stealth-mode companies to the top 20 pharma companies, WuXi AppTec is one of the leading end-to-end service providers in the biopharma industry and an active shaper of regional innovation landscapes.

Outlook: How can Munich achieve its next growth spurt?

What does it take to turn promising momentum into sustainable growth?

“We need a new generation of biotech companies that, in addition to rapid growth, also pursue long-term strategies — with a clear focus on sustainable development, robust pipelines, and internationalization,” says Meins. “This requires an ecosystem that supports these ambitions — with capital for all growth phases, modern infrastructure, regulatory expertise, and reliable partnerships.”

WuXi AppTec aims not just to participate in this process, but to actively lead it. Its presence at BayOConnect, its ongoing collaboration with founders, universities, and investors, and the further development of its Munich site all reflect this ambition.

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