Biocatalysis is enjoying an increasing interest not only in academia, but also in industry. It has been the topic of several excellent reviews or books [Bornscheuer and Kaszlauskas, Hydrolases in Organic Synthesis - Regio- and Stereoselective Biotransformations, Wiley-VCH, Weinheim, 1999; H.-J. Rehm, G. Reed, A. Puhler, P. Stadler (Eds.), Biotechnology, Biotransformations, Vol. 8, Wiley-VCH, Weinheim, 1998; Faber, Biotransformation, Organic Chemistry, Springer Berlin, 1996; K. Drauz, H. Waldmann, (Eds.), Enzyme Catalysis in Organic Synthesis, VCH Verlagsgesellschaft mbH, Weinheim, 1995; Wong and Whitesides, Enzymes in Synthetic Organic Chemistry, Tetrahedron Organic, Chemistry, Vol. 12, Pergamon, Oxford, 1994; Sheldon, Chirotechnology, Marcel Dekker, New York, 1993; Chem. Today 13 (1995) 9; Drug Discovery Today 2 (1997) 513, Bioorg. Med. Chem. 7 (1999) 2253 J. Chem. Soc., Perkin Trans. 1 (1999) 1; U.T. Bornscheuer, in: Biotechnology-Biotransformations II, Vol. 8b, Wiley-VCH, Weinheim, 2000 pp. 277-294.] [1 -11]. Aim of this article is to present recent developments of biocatalysis in the pharmaceutical industry in a more didactical manner. An outlook on future aspects of biocatalysis will reflect the authors opinion. We will discuss the fundamental strength of biocatalysis but also some commonly held pre-conceptions, which we believe are superficial.