Leipzig
#read

How Leipzig became Europe’s hidden biotech gem: The rise of Germany’s unlikely innovation hub

In the heart of Eastern Germany, a quiet revolution has been brewing. Leipzig, once overshadowed by Berlin and Munich in the biotech landscape, has emerged as one of Europe’s most dynamic life sciences clusters. With over 220 companies, 13 research institutes, and 5,300 employees in the sector, this former industrial hub has transformed itself into a biotechnology powerhouse that’s attracting global attention. The story of Leipzig’s biotech ascension isn’t just about infrastructure and investment; it’s about timing, vision, and the pioneers who built an ecosystem from scratch. At the centre of this transformation stands c-LEcta (pronounced Selecta), an enzyme technology company that has grown alongside the city’s biotech ambitions for more than two decades.
04/09/2025

Building from Nothing

When Marc Struhalla co-founded c-LEcta in the early 2000s as a spin-off from the University of Leipzig’s Institute of Biochemistry, the biotech ecosystem in Saxony was virtually non-existent. “The whole ecosystem around life science, biotech startups was in its infancy at that time,” recalls Struhalla, who now leads enzyme-related biotech activities at the Kerry Group following the company’s acquisition in 2022. “We were kind of the first wave of companies and initiatives that came to life.”

The timing, however, proved fortuitous. Just as c-LEcta was taking its first steps, the Free State of Saxony launched its ambitious biotech offensive in 2000, committing €200 million to build infrastructure and establish new research groups. This bold investment laid the groundwork for what would become one of Germany’s most successful regional biotech clusters.

“We were there just at the right time when all this started,” Struhalla explains. The newly established BIO CITY incubation centre became available just as the company needed space, marking the beginning of a symbiotic relationship between Leipzig’s growing biotech infrastructure and its pioneering companies.

Being among the first wave of biotech companies in Leipzig came with unique advantages and significant challenges. On the positive side, c-LEcta garnered substantial attention from local government, Saxon institutions, and the City of Leipzig itself.

“We could get a lot of attention because there wasn’t that much going on at that time,” Struhalla notes. “Everybody was always available because we were just there at the very early stage when this ecosystem was starting to establish.”

However, the lack of an established network created substantial hurdles. Financing proved particularly challenging, with limited seed funds and venture capital available in the region. The company also struggled to find qualified partners and consultants, sometimes making wrong choices that led to dead ends and mistakes that would have been avoided in a more mature ecosystem.

“We engaged with one or two investors early on which we thought would be the right ones, and then we just learned they actually don’t have money,” Struhalla recalls. “A more established ecosystem could have avoided these mistakes.”

The Infrastructure Revolution

The transformation of Leipzig’s biotech landscape accelerated with strategic infrastructure investments. In 2003, BIO CITY Leipzig opened, providing 20,000 square meters of state-of-the-art facilities. This was followed by the establishment of the Fraunhofer IZI (Institute for Cell Therapy and Immunology) and ICCAS (Innovation Centre for Computer-Assisted Surgery) in 2005, and the BioCube Leipzig in 2013.

André Hofmann, managing director of leap:up and part of the executive board of biosaxony, emphasises the importance of this coordinated approach. “The BioCity Campus is a biotechnology and bioscience park and one of our unique selling points,” he explains. “The 50-hectare site, which is close to the city centre, is being developed into a campus for life sciences and knowledge-intensive companies.”

This infrastructure development wasn’t just about buildings, it created a critical mass that attracted talent, companies, and investment. Today, 3,500 students are studying life science-related subjects in Leipzig, providing a steady pipeline of skilled professionals for the growing sector.

Leipzig’s success in biotech isn’t accidental. It’s the result of a carefully orchestrated combination of factors that create what Hofmann calls the “secret sauce.” Unlike saturated clusters in Berlin or Munich, Leipzig still offers opportunities for new entrants while providing comprehensive support systems.

“Small and young companies in particular benefit from active support: the city administration, technology centres, funding bodies and foundations all work together to help them,” Hofmann explains. The City of Leipzig has designated life sciences as one of its three strategic focus areas, providing the sector with strong political backing and long-term stability.

One of Leipzig’s key advantages is space, a critical requirement for biotech companies that need more than just offices and computers. “In life science, biotech, that’s a big asset because you cannot just start with an office and a computer. Usually, you require labs,” Struhalla points out. Over the next two years, more than 50,000 square meters of new laboratory and office space will become available, ensuring that infrastructure won’t become a bottleneck for growth.

The city’s quality of life also plays a crucial role in attracting talent. “Leipzig is really one of the most attractive cities not only in Germany but in Europe,” Struhalla notes. “The life science cluster is in the middle of the city, which is just fantastic. You just need to go five minutes by bike, and you’re in the middle of the town.”

Global Recognition and Future Ambitions

Leipzig’s biotech credentials received international validation when BIO-Europe, one of the industry’s most prestigious conferences, chose the city as its venue in 2022. “The latest milestone was undoubtedly BIO Europe selecting Leipzig as a venue, which brought a great deal of attention from around the world,” Hofmann reflects.

This recognition shows the maturation of Leipzig’s biotech ecosystem. In 2021, SaxoCell was selected as one of seven future clusters by Germany’s Federal Ministry of Education and Research, further cementing the region’s position as a national leader in life sciences innovation.

The ecosystem continues to evolve and expand. MEDICAL FORGE Leipzig, a twelve-month accelerator program for medtech companies launched in 2022, has already supported 30 companies, including 18 from overseas. Several participants have established permanent operations in the region, strengthening the local cluster and attracting additional investment.

c-LEcta’s journey mirrors Leipzig’s broader transformation. The company has moved through three locations on the old fair grounds, each time expanding its capabilities and workforce. Now employing a little more than 130 people, with 80 focused on innovation, c-LEcta (which stands for selecting the right enzymes from large collections) has become the global biotech innovation centre for the Kerry Group.

“We are soon moving into our third location here on the old fair. We started in the BIO CITY, then moved into a newly built building called BioCube, and now we’ll move into our new headquarters very soon,” Struhalla explains. The new facility can accommodate more than 250 employees, positioning the company for continued growth.

As Leipzig’s biotech ecosystem matures, the focus is shifting from building infrastructure to nurturing sustainable growth. The region sees particular potential in medical devices, diagnostics, cell and gene therapy, and phage therapy, areas where Leipzig has already established expertise.

The ecosystem’s evolution from a government-supported initiative to a self-sustaining cluster represents a significant achievement. “Many support services are now viable independently of state funding,” Hofmann notes, indicating the cluster’s growing maturity and resilience.

For biotech entrepreneurs considering Leipzig today, the contrast with the early 2000s is strong. “I would strongly recommend anyone to reach out to these institutions and ask for help,” Struhalla says. “I am very confident that they would find the right support.”

Leipzig’s transformation from an unlikely biotech location to a recognized innovation hub demonstrates the power of strategic vision, sustained investment, and collaborative ecosystem building. As the city continues to expand its capabilities and attract global attention, it stands as a model for how regions can successfully build competitive life sciences clusters from the ground up.

The story of Leipzig’s biotech rise is still being written, but one thing is clear: this former East German city has established itself as a serious player in Europe’s life sciences landscape, and its ambitions extend far beyond regional success.

News from 09/04/2025 from “Silicon Canals”