2024-01-28-莱坊-Life_Sciences_Innovation_Insight_Q4_2023_9页_829kb

Knight Frank UK Life Sciences & Innovation Q4 2023 Insigt Summary

Region, Location & Distribution

• Strong life science ecosystem in the 'Golden Triangle' of London and Oxbridge.
• Growth hubs emerging beyond this core area, e.g., Manchester, Bristol, Edinburgh, supported by initiatives and investment.

Industry Performance & Investment

• Q4 2023:
  • Pharma and biotech stocks outperformed the broader market.
  • UK VC funding slowed slightly in Q4 but remained near decade highs (£462m).
  • BioNTech secured significant lab space (~100k sq ft) in Cambridge.
• 2023 Annual:
  • UK life sciences raised £3.3bn, the third-highest total over the past ten years but still down 7% YoY.
  • Company creation hit a 10-year high, with 1,088 launches, largely in the Golden Triangle.
  • Scientific/Quality Assurance job advert weeks fell 22% YoY, though other job adverts were down less than all industries combined.

Real Estate Activity

• Leasing (Q4 2023):
  • Golden Triangle saw 215,050 sq ft taken up, notable deals signed by major players.
  • R&D spending rising at major companies may increase future demand.
• Investment (2023 Total):
  • Golden Triangle investment in life sciences commercial real estate declined by 57% YoY.
  • Factors include tight inventory, development risk aversion, and stringent financing.
  • Investor base is more specialized now than during pandemic booms.
• Other Landmarks:
  • Bruntwood SciTech secured £500m funding for expansion/redevelopment (includes GM Pension Fund).

Government Investment & Policy Tracker

• Horizon/Copernicus: UK formally participated.
• Autumn Statement Investments:
  • New investment zones expected to attract £3.4bn private investment and ~65k jobs.
  • £520m funding package for life sciences manufacturing.
  • Changes to R&D tax credits.
• UK Global Investment Summit (Nov 2023):
  • BioNTech announced multi-million investment plans (Cambridge & London).
  • Microsoft pledged £2.5bn in UK AI infrastructure.
• Mitochondrial Disease Biobank: Received significant donations (Eric Schmidt, Ken Griffin) & plans major sequencing initiative.
• CRISPR Approval: MHRA approved first global CRISPR gene therapy.
• Engineering Biology: £2bn long-term vision launched.
• Quantum Strategy: Further build-up on previous £2.5bn US focus, including UK component.
• Foreign Direct Investment: Upward trend seen for UK genomics specialist.
• Labour Party Policies (Conference): Mentioned potential National Wealth Fund, healthcare reform (AI role), 10-year R&D funding, "founder track".

Business Outlook (Leading Companies)

• Dechra was a top FTSE performer in Q4, agreed an acquisition.
• Companies like Sandoz, FL 86 Ltd, Avalere Health, Viacon Motion, Oxford Nanopore/Tech have been active or mentioned in the context.
• Leading firms increasing R&D spend.

Commercial Contacts

• Listed key contacts across Knight Frank divisions relevant to life sciences and innovation commercial activity in the UK, London, and via Cresa/APAC partners.