2023-05-17-莱坊-Life_Sciences_Q1_2023_9页_899kb

UK Life Sciences & Innovation Insight Summary - Q1 2023

Sector Performance

Share Price

• Biopharma stocks outperformed the FTSE All Share index in Q1 2023.
• The FTSE All Share pharma & biotech price return index increased by 4% during the quarter.

Company Creation

• The number of life sciences companies incorporated in the UK reached 283 in Q1 2023, a 35% increase compared to the previous quarter.
• This marks the highest quarter on record for UK life sciences company incorporations.
• The most popular locations for company creation were London, Cambridge, and Manchester.

Venture Capital Funding

• UK life sciences VC funding reached £587m in Q1 2023, a 28% decline from the previous quarter and a 33% decline year-on-year.
• Despite this, the funding level was 6% above the 10-year average.
• The Golden Triangle (London, Cambridge, Manchester) accounted for 80% of all VC funding in Q1 2023.

Occupier Prospecting

• A data-led approach is used to identify and qualify life sciences prospects, tracking metrics such as:

  • Venture capital funding
  • Private equity financing
  • Changes in employment
  • Changes in financial performance
  • Corporate announcements
  • University spin-outs
  • Clinical trials activity
  • New company registrations
  • M&A activity
  • IPO listings
  • Public funding
  • Other research funding sources

• 2023 is expected to be an active year for life sciences M&A, driven by increased private equity interest and the need to refresh pipelines and pivot to high-growth areas.

• Bain & Company estimates that £100bn in patents will expire by 2030, prompting strategic M&A activity.

M&A Activity in Q1 2023

• Active acquirers in the UK life sciences sector include Centessa, PerkinElmer, For the Better, and others.

Real Estate Activity

Leasing Market

• Life sciences leasing volumes in Q1 2023 were reported, with several notable deals:
  • New England Biolabs leased 30,000 sq ft of lab space in Oxford.
  • General Pharmaceutical Council leased 21,056 sq ft of office space in London at £35.00/psf.
  • Hoxton Farms leased 13,476 sq ft of lab space in London at £65.00/psf.
  • ADC Therapeutics leased 12,000 sq ft of lab space in London at £55.00/psf.
  • Queen Mary University of London leased 11,379 sq ft of office space in London at £37.35/psf.
  • MSD leased 10,000 sq ft of lab space in London.
  • Living Optics leased 8,000 sq ft of office space in Oxford.

Investment Market

• Investment volumes in the Golden Triangle saw several major transactions:
  • Tribeca, NW1 (London): Sold for £290M as a freehold with redevelopment potential.
  • 17 Columbus Courtyard, Canary Wharf (London): Sold for £99.75M.
  • Westbrook Centre (Cambridge): Sold for £75M.
  • Hinshelwood Building, Oxford Science Park: Sold for £19.4M.
  • 163 Cambridge Science Park: Sold for £12.17M.

Other Real Estate Activity

• Bruntwood SciTech launched a search for a new investor and signed an agreement with Aston University to support the Birmingham Knowledge Quarter.
• British Airways NAPS, GIC, and Reef Group signed an agreement to develop Tribeca King's Cross, a £1bn life sciences development in London.
• Harrison Street is raising over €800m for a new fund targeting life sciences and other alternative sectors.
• LS Estates appointed Paul Bailey as managing director for life sciences and asset management, overseeing 17 Columbus Courtyard.
• Mission Street strengthened its life sciences advisory board with Peter Finan, Jonathan Hepple, and Tim Funnell.
• A partnership between McLaren Property, Property Alliance Group, Moda Living, and Kadans Science Partner is creating a masterplan for 700,000 sq ft of life sciences space and 1,840 student beds in Upper Brook Street, Manchester.

Government Investment Tracker

Key Public Investments

• UKRI invested in life sciences R&D in Q1 2023.

• The Chancellor announced several initiatives in the spring budget, including:

  • Enhanced tax relief for R&D-intensive SMEs
  • Full expensing of capital allowances
  • MHRA regulatory reform
  • Unlocking DC pension fund investment
  • Making the London Stock Exchange more attractive for listings
  • Further devolution and clustering strategy

• A new international technology strategy was launched, focusing on AI, quantum, semiconductors, telecoms, and engineering biology, all supported by data.

• ARIA (Advances Research and Invention Agency) was legally established with £800m in funding, modeled on DARPA.

• The UK's first MedTech strategy was launched to accelerate access to innovative technologies for the NHS.

• A clinical trials landscape review was announced, aiming to improve investment and growth opportunities.

• The MHRA introduced a new framework for clinical trials regulation, the biggest overhaul in over 20 years.

• A £2.5m regional partnership was pledged to support the Oxford to Cambridge region.

• A two-year NHS plan includes more care at home, which could benefit remote patient monitoring.

• Innovate UK partnered with the London Stock Exchange to help companies access funding.

• The Department for Science, Innovation and Technology launched a Science and Technology Framework with 10 focus areas.

Other Significant News

• GMP manufacturing capacity expanded with new facilities:

  • Macfarlan Smith expanded its API manufacturing in Edinburgh.
  • Celadon Pharmaceuticals received GMP registration in Birmingham.
  • Sai Life Sciences established a GMP Kilo lab in Alderley Park, Manchester.
  • Upperton Pharma Solutions began construction of its 50,000 sq ft headquarters in Beeston.
  • Wockhardt UK announced potential vaccine manufacturing partnerships.
  • A new cell and gene therapy centre in Bristol will be the largest blood manufacturing facility in Europe.

• BioNTech will open its first UK facility at Cambridge's 1000 Discovery Drive, targeting 80,000 sq ft of commercial research space.

• Moderna selected the Harwell Campus in Oxfordshire for its UK facility, committing to 145,000 sq ft.

• Hospital Services Limited (HSL) launched a new 1.7m headquarters in the East Midlands.

• The Welsh Government announced plans for a nuclear medicine facility in North Wales.

• Brinton Pharmaceuticals opened a global R&D centre in Runcorn, Cheshire, with a £30m investment plan over 5 years.

• BioScience opened a Genomics and Precision Medicine unit in Cambridge.

Contact Information

Head of Life Sciences and Innovation

• Emma Goodford
• Partner
• Email: emma.goodford@knightfrank.com
• Phone: +44 207861 1144

London

• Philip Hobley
• Partner
• Email: philip.hobley@knightfrank.com
• Phone: +44 207861 1192

Cambridge

• Lain Keys
• Partner
• Email: lain.Keys@knightfrank.com
• Phone: +44 122 397 2912

UK Cities

• David Porter
• Partner
• Email: david.porter@knightfrank.com
• Phone: +44 161 833 7725

Capital Markets

• Mark Routledge

• Partner

• Email: mark.routedge@knightfrank.com

• Phone: +44 20 3869 4788

• Freddie Owen

• Partner

• Email: freddie.owen@knightfrank.com

• Phone: +44 20 7861 1225

• Henry Wyld

• Partner

• Email: henry.wyld@knightfrank.com

• Phone: +44 207861 1520

• Tom Coaker

• Associate

• Email: tom.coaker@knightfrank.com

• Phone: +44 20 3640 7047

Valuation & Advisory

• Michael Crowe
• Partner
• Email: michael.crowe@knightfrank.com
• Phone: +44 20 7861 5258

Occupier Consultancy

• Neil McLocklin
• Partner
• Email: neil.mclocklin@knightfrank.com
• Phone: +44 20 3909 6836

CRESA

• John Coakley
• Principal, Boston
• Email: jcoakley@cresa.com
• Phone: +1 617 758 6039

Research

• Jennifer Townsend
• Partner
• Email: jennifer.townc send@knightfrank.com
• Phone: +44 20 3866 8028

APAC

• Jonathan Rideout

• Partner

• Email: jonathan.rideout@cn.knightfrank.com

• Phone: +86 21 6032 1713

• Lawson Katiza

• Partner

• Email: lawson.katiza@au.knightfrank.com

• Phone: +61732468814

• Sam Biggins

• Partner

• Email: Sam.biggs@au.knightfrank.com

• Phone: +61732468832

Important Notice

• This report is for general information only and not to be relied upon.
• No responsibility or liability is accepted for any loss or damage resulting from its use.
• Reproduction is not allowed without prior written approval.
• Knight Frank LLP is a limited liability partnership registered in England.