Life Sciences Outlook Switzerland. 2012

Transcription

1 Life Sciences Switzerland Switzerland clusters driving scientific innovation Basal (BioValley) Switzerland s largest life sciences hub and the nexus of industry leaders France, Germany and Switzerland Zurich (Greater Zurich Area) Bolstered by the University of Zurich and the Swiss Federal Institute of Technology Zurich (ETH) Lake Geneva (BioAlps) A build-to-suit locale for many multinational companies

2 Switzerland ranks No. 1 in the Global Competitiveness Report of the World Economic Forum and is home to several large leading life sciences companies. Global trends The after effects of the recession, coupled with the European sovereign-debt crisis continue to plague business operations in the mature market clusters of North America and Western Europe, including those of life sciences companies of all sizes and maturity levels. While most life sciences companies continue to enjoy higher profit margins than those of other industry segments, it has become markedly clear that the product development formula of the past no longer applies. As a result greater emphasis is being placed on the next wave of drugs and treatments those stemming from biological organisms. Additionally, companies are increasingly diversifying their portfolios to mitigate risk and help fund the lofty costs of innovation, adding generic brands, crop and animal science and even consumer products through mergers and acquisitions. New product developments have become ever more costly and difficult to achieve. Drug makers are attempting to achieve greater breakthroughs with less funds than in years past. The need to increase a company s likelihood of developing a new treatment continues to steer conversations around location strategy. While many companies maintain R&D in mature markets rich with people capital and renowned research universities, others are turning to emerging global clusters due to dedicated private and public funding. Switzerland market overview Switzerland is one of Europe s most established life sciences locations. Switzerland was again rated number 1 in the World Economic Forum s Global Competitiveness Report , reflecting its advantages for the life sciences industry and other research, production and service companies. Switzerland is also a leader in education and is one of the world s most active countries in research. Aided by the proximity of top pharmaceutical companies such as Roche and Novartis and by the strong financial sector in Zurich and Geneva, academic excellence in the biomedical sciences serves as a motor for innovation in the biotech and medtech sector. Therefore the density of biotech Jones Lang LaSalle Switzerland 2012 companies in Switzerland is unparalleled worldwide. Numerous joint activities of universities and private companies provide favorable conditions for young start-up companies. Benefits such as lowcost rental space at the university s labs during the first years and the availability of biotech parks and business incubators in and around Zurich also support life sciences growth. The main clusters of life science activity can be found in Basel (BioValley), Zurich (Greater Zurich Area) and in Geneva (BioAlps). As a result of the appreciation of the Swiss franc, caused by global macroeconomic uncertainty and Switzerland s safe haven status, short-term growth rates around 1.5 percent are forecasted. Despite the lower growth rate and increasing competition, Switzerland is likely to remain one of the world leaders in life sciences innovations. The strong position is supported by a balanced mix of academia, concentration of private life sciences companies and optimal infrastructure. Large Swiss companies like Novartis, Roche, Syngenta and Nestle are traditionally owners and occupiers of their real estate properties. Other large developments, for example the Novartis Campus in Basel, are built-to-suit-projects. Jones Lang LaSalle estimates that about 75.0 percent of all properties used by life sciences companies in Switzerland are built-to-suit by their occupiers. Industry statistics % Researchers in science, per thousand total employment, 2008 Graduate students in science, engineering manufacturing & construction, as a % of total graduate students, 2009 Gross expenditure on R&D, as percent of GDP, 2008 Total patent applications, residents only, 2010 Sources: UNISCO Institute for Statistics, the World Bank 21.6% 1,622

3 Jones Lang LaSalle Switzerland 2012 Basel (BioValley) The area around the city of Basel is one major centre of the life sciences industry and approximately 40.0 percent of the world s pharmaceutical companies are located in this area. Its superior location in the border triangle of Germany, France and Switzerland leads to a highlyinternational cluster of institutions and competences. More than 600 pharmaceutical and medtech companies, 10 universities, 15,000 scientists and various technology and life sciences parks offer an optimal infrastructure. Established pharmaceutical and chemical companies like Novartis, Roche or BASF have large R&D and production sites located around Basel. As this infrastructure is specialized for the specific tenant s requirements, the market for this type of real estate is limited. Office and laboratory space in different price ranges is available in the numerous business parks. Novartis is planning a long-term campus development on a former production site. After the second construction phase, it will offer office space for up to 10,000 employees. Next to the R&D and headquarter facilities, the company plans to consolidate different smaller sites in Basel and to offer optimal surroundings for knowledge transfer. Zurich (Greater Zurich Area) The life sciences market in Zurich is influenced by the University of Zurich and the Swiss Federal Institute of Technology Zurich (ETH), which bear many promising spin-offs and start-ups each year. Additionally many international companies, including Bayer (Switzerland) AG and Novo Nordisk Pharma AG, value the high standard of life in Zurich and have chosen to locate offices or headquarters here. The high-quality infrastructure grants best national and international connectivity and numerous technology parks within Zurich offer premium laboratory infrastructure and support the relationship between start-ups and universities. The Life Sciences Platform, a laboratory for biomedical research built by the ETH, will strengthen Zurich s international positioning. With 21,000 employees in the life sciences field this submarket is the second-largest after the life sciences sector in Basel. The annual revenue accounts for CHF 40.0 billion ($41.7 billion) and reflects nearly 4.0 percent of the GDP of the canton of Zurich. The newly reinforced organization Life Science Zurich put in a lot of effort to market the life sciences sector in and around Zurich. Spin-offs from some of the best universities in the world will generate additional demand for office and laboratory space during the next few years. 1 Six month average conversion rate of CHF 0.96 per US dollar, as of October 2012 Optimal conditions for researchers paired with the concentration of pharmaceutical multinationals favours Basel as one of the most important location for life science companies. The newly-built laboratory at the ETH and the accumulation of knowledge firms Zurich s important role in the life science market. Source:

4 Jones Lang LaSalle Switzerland 2012 Lake Geneva (BioAlps) The Lake Geneva area is an attractive life sciences location due to an extensive network of research & academic intuitions, more than 570 multinational companies, great infrastructure and the extraordinary accumulation of capital. The high-concentration of international enterprises leads to a remarkable centre of competencies, which is why this area is favored not only by established companies like Nestle and Merck Serono, but also by emerging biotechnical or medtech companies. The close proximity to one of the world s top the universities, the École Polytchnique Fédéral de Lausanne (EPFL), boosts the attractiveness of the Lake Geneva area as it generates various spin-offs. Due to limited availability of supply, large life sciences tenants in the market have focused on buildto-suits when considering relocation to this area. The science parks offer state-of-the-art premises such as The Science Park (PSE) offered by EPFL and the Y-Parc in the canton of Vaud. As the Arc Lémanique area continues to experience an increase in activity, a change in the type of necessary infrastructure is expected. However the high build-to-suit fit-outs will prevent numerous transactions. The EPFL and projects like CERN will increase the demand for life sciences facilities.

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