Welcome!

News Feed Item

JLL: Is the West Losing Its Global Life Sciences Lead to China?

JLL's 2014 Global Life Sciences Cluster Report Reveals International Shifts in Innovation, Markets and Players

SAN DIEGO, CA -- (Marketwired) -- 06/23/14 -- Intellectual dominance in life sciences has traditionally been concentrated in the key markets of Boston, California and Germany, near the multi-national corporations that drive innovation. Yet, a key market ranking -- the third annual JLL Global Life Sciences Cluster Report released today at the BIO International Convention in San Diego -- suggests that the industry may be shifting its intellectual prowess toward emerging markets and middle-market corporate players.

"The biopharmaceutical industry is undergoing a significant transition as start-ups, specialty firms and mid-tier companies become the leading source of new product innovation," said Roger Humphrey, Executive Managing Director of JLL's (NYSE: JLL) Life Sciences group in the Americas. "This shift is reflected in the changing physical landscape of biopharmaceutical operations, including real estate."

The 2014 JLL Global Life Sciences Cluster Report identifies three primary global life sciences trends:

1. Start-ups, specialty firms and mid-tier companies are beginning to lead innovation.

Following the "doom and gloom" era of patent expirations, depleted product pipelines and uncertainty in U.S. healthcare reform, 2013 brought new energy to the life sciences industry. As large pharmaceutical companies continue to retrench, small- to medium-sized companies and specialty players are steadily growing, propelling initial public offerings to a volume not seen since the "dot.com" bubble of the 2000s. In some instances, vacated facilities are being retrofitted to accommodate the growing needs of mid-tier and specialty biopharmaceutical companies seeking space and access to resources.

These trends are stimulating significant changes in biopharmaceutical facilities. In mature markets such as the United States and Western Europe, many large life sciences companies have consolidated their operations and vacated their campuses. In 2013, for example, Germany-based Boehringer Ingelheim put up for sale its 190-acre, world-class production campus in Petersburg, Va., in the southeast United States. The company cited competition from low-cost generic medicines as a factor in the decision.

2. Competition is going global: for innovation, customers and talent.

North America and Europe continue to be the dominant contributors of life sciences Patent Cooperation Treaty (PCT) applications -- but a review of year-over-year application volume by country of origin reveals dramatic global shifts in innovation. Developing countries are beginning to challenge the hegemony of more mature economies.

North America and Europe's PCT life sciences patent volume is steadily decreasing, while that of Asia, Latin America and the Caribbean is increasing. In 2012, China reported the largest year-over-year increase -- 42.8 percent -- in total number of life sciences PCT applications, a rate far outpacing the growth of its overall PCT applications. Asia's share of PCT life sciences applications grew to 26 percent in 2012 from approximately 5 percent in 1990, while North America's share shrank to 41 percent in 2012 from more than 50 percent in 1990.

"Notably, the three countries with the most year-over-year growth in overall PCT applications -- China, Korea and Japan -- are also among the least collaborative countries," notes Erin Bovee, lead researcher for JLL's Global Life Sciences Cluster Report. "These countries appear to be seeking self-sufficiency in innovation."

Emerging countries are also gaining ground in talent development. China educates only a small percentage of its population, yet long ago surpassed the United States as the frontrunner in science and engineering doctorates. The United States remains a leader in awarding higher degrees in science and engineering, but is training fewer young workers than such countries as the Netherlands, South Korea, the United Kingdom, Australia and Japan.

3. Facilities are receiving new attention as a source of cost savings and regulatory compliance.

As detailed in JLL's 2011 Global Life Sciences Cluster Report, global pharmaceutical companies acted quickly in response to the patent cliff by consolidating; reducing their facilities footprints through building sales and decommissioning; trimming labor costs through layoffs; and increasing the outsourcing of non-core services.

"The need for strategic corporate real estate portfolio planning is at an all-time high as companies of all sizes seek operating efficiencies," said Humphrey. "Globally, the changes in life sciences companies' real estate portfolios are some of the most drastic among all industries."

The industry's move to more profitable and faster growth models has led to downsizing in mature markets and a focus on opportunities in emerging markets. JLL's 2014 Global Corporate Real Estate Trends for the Life Sciences Sector found that more than a third of life sciences companies anticipate reducing or consolidating their real estate portfolios in European markets, while 63 percent and 48 percent plan to increase their portfolios in China and Brazil, respectively, and 35 percent in Russia. In 2011, for example, Pfizer opted to relocate its antibacterial research unit from the United States to Shanghai.

Beyond the site selection challenges, many companies have turned to strategic facilities management to reduce operating costs. The life sciences sector is already the most active in facilities outsourcing, according to JLL's Corporate Real Estate Trends report, with 22 percent of companies fully outsourcing portfolio and facilities management functions, compared to 13 percent in other industries.

"Life sciences companies around the world are using qualified service providers to manage not only building systems, but also laboratory and production equipment, hazardous waste, supply chain and other critical areas like facilities regulatory compliance," said Dr. Lee Elliott, Head of EMEA Research for JLL. "We expect facilities outsourcing to continue to extend into highly-regulated spaces that, in the past, were off-limits."

About the Global Life Sciences Cluster Report
JLL's annual Global Life Sciences Cluster Report tracks geographic shifts in life sciences innovation, operations and facilities investments, including a ranking of the top U.S. life sciences clusters and analyses of countries and cities around the world most actively investing in life sciences. The complete findings of the 2014 Global Life Sciences Cluster Report are available here.

About JLL's Life Sciences Capabilities
JLL offers a team of real estate and facility management experts dedicated to helping life sciences companies optimize and manage their real estate portfolios. The firm provides a comprehensive range of services with singular technical operations and GxP expertise dedicated to the Life Sciences and Pharmaceutical community with more than 70 million square feet managed of R&D/pilot plant, manufacturing and office space worldwide. Its industry-leading platform includes Labwell, a comprehensive laboratory service.

A leader in the real estate outsourcing field, JLL's Corporate Solutions business helps corporations improve productivity in the cost, efficiency and performance of their national, regional or global real estate portfolios by creating outsourcing partnerships to manage and execute a range of corporate real estate services. This service delivery capability helps corporations improve business performance, particularly as companies turn to the outsourcing of their real estate activity as a way to manage expenses and enhance profitability.

For more news, videos and research resources on JLL, please visit the firm's global media center Web page http://bit.ly/18P2tkv.

About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4 billion, JLL has more than 200 corporate offices and operates in 75 countries worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3 billion square feet and completed $99 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $48.0 billion of real estate assets under management. JLL is the brand name of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.

Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2623634

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
On Dice.com, the number of job postings asking for skill in Amazon Web Services increased 76 percent between June 2015 and June 2016. Salesforce.com saw its own skill mentions increase 37 percent, while DevOps and Cloud rose 35 percent and 28 percent, respectively. Even as they expand their presence in the cloud, companies are also looking for tech professionals who can manage projects, crunch data, and figure out how to make systems run more autonomously. Mentions of ‘data science’ as a skill ...
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, will provide economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session will also include a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
Security, data privacy, reliability and regulatory compliance are critical factors when evaluating whether to move business applications from in-house client hosted environments to a cloud platform. In her session at 18th Cloud Expo, Vandana Viswanathan, Associate Director at Cognizant, In this session, will provide an orientation to the five stages required to implement a cloud hosted solution validation strategy.
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
ReadyTalk has expanded the capabilities of the FoxDen collaboration platform announced late last year to include FoxDen Connect, an in-room video collaboration experience that launches with a single touch. With FoxDen Connect, users can now not only engage in HD video conferencing between iOS and Android mobile devices or Chrome browsers, but also set up in-person meeting rooms for video interactions. A host’s mobile device automatically recognizes the presence of a meeting room via beacon tech...
Ovum, a leading technology analyst firm, has published an in-depth report, Ovum Decision Matrix: Selecting a DevOps Release Management Solution, 2016–17. The report focuses on the automation aspects of DevOps, Release Management and compares solutions from the leading vendors.
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download our guide to laying the groundwork for a scalable continuous testing strategy.
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
UpGuard has become a member of the Center for Internet Security (CIS), and will continue to help businesses expand visibility into their cyber risk by providing hardening benchmarks to all customers. By incorporating these benchmarks, UpGuard's CSTAR solution builds on its lead in providing the most complete assessment of both internal and external cyber risk. CIS benchmarks are a widely accepted set of hardening guidelines that have been publicly available for years. Numerous solutions exist t...