Pharmaceutical and Biotechnology Construction Sector Report - UK Analysis

Transcription

1 Pharmaceutical and Biotechnology Construction Sector Report - UK Analysis Published: 16/09/2016 / Number of Pages: 98 / Price: Introduction and Overview The 3rd edition of the report'pharmaceutical and Biotechnology Construction Sector Report - UK Analysis' addresses the scale of construction activity in the pharmaceutical and biotechnology industry alongside the key contractors operating in that sector. It also assesses the health of the pharmaceutical industry and whether prospective industry performance is likely to lead to greater levels of capital and construction investment. Key sections covered: Market size and overview - value, market drivers and key issues, R&D and manufacturing activity. Construction activity - in the pharmaceutical and biotechnology industries. Main manufacturing and R&D facilities - the key centres of the South East, East of England, North West, North East and Scotland. Construction capability - major companies involved in the pharmaceutical and biotechnology sectors including contractors, consultants and architects. Funding and investment - analysis of Government resource and capital funding for science and research. Key areas of insight include: Analysis of the impact of Brexit on the UK pharmaceutical sector - there are significant issues for the industry including the regulation of medicines, EU clinical trials regulation, EU funding for research, access to R&D facilities, the single market, skills base. Leading specialist supply companies to the pharmaceutical industry including: cleanroom design, construction and fitout; clean and controlled air environments; clean air products; bio-containment and contamination control; validation and maintenance. Construction costs and issues in the design of pharmaceutical R&D and manufacturing facilities including legislation, regulatory requirements, containment and environmental issues, cleanroom and laboratory design. Detailed analysis of pharmaceutical clusters and centres of excellence in the UK. Many of the UK's biotech firms are

2 located in an area known as 'The Golden Triangle', with the centres of London, Cambridge, Oxford and Stevenage housing the UK's largest biomedical cluster in the UK. Review of the main challenges facing the pharmaceutical sector including slowing R&D pipelines, dwindling healthcare budgets, rising costs, impending 'patent cliffs', increased regulatory controls, the influence of the generic drugs market and increased pricing pressures. Detailed market data and insight on the pharmaceutical and biotechnology construction sector by AMA Research, a leading UK provider of construction market intelligence. Some of the companies mentioned in the report include: ABB Group, AECOM, AMEC Foster Wheeler, Ardmac, Bassaire, BDP, Bilfinger SE, Cavendish Engineers, Clean Air Technologies, Clean Modules, Cleanroom Design & Construction, Cleanroom Solutions, ClearSphere, Enbloc Cleanrooms, ISG, Jacobs Engineering, John Sisk & Sons, Kier Group, Laing O'Rourke, M+W Group, Mach-Aire, Merit Merrell, Morgan Sindall, Nuvia, PM Group, Precision Cleanrooms, SDC, Sheppard Robson, Validair, Wilson Mason. Market Overview Market definition, size and value, overview of the global pharmaceutical market, overview of the UK pharmaceutical market: biopharmaceuticals; medical technology; digital health; genomics sector. Location of UK biopharmaceutical manufacturing and R&D sites. Pharmaceutical/biotechnology clusters and centres of excellence: Oxfordshire biocluster; London, Cambridge and Stevenage bioclusters. Regional concentration of pharmaceutical manufacturing and R&D: Northwest; East, Southeast and London; Northeast; Scotland. Future of pharmaceutical manufacturing operations in the UK. Value of pharmaceutical industry to the UK economy: UK trade in pharmaceuticals, sales of pharmaceutical drugs to the NHS. Pharmaceutical R&D in the UK: government funding for science R&D (resource & capital funding); pharmaceutical company investment in R&D; R&D pipeline. Market drivers and key issues in the pharmaceutical industry: drug patent expirations; generic drugs market; university collaboration with the pharmaceutical industry; tax implications and government legislation; long-term implications of 'brexit' on the UK pharmaceutical industry. Construction Activity Construction output in the UK pharmaceutical and biotechnology sector, forecast through to 2020, prospects for development in construction within this end use sector. Construction in the industrial sector, future prospects in construction output within the sector, key influencing factors, growth in factories and warehouses. Capital expenditure in the UK pharmaceutical & biotechnology sectors: R&D capital and manufacturing capital. Pharmaceutical construction/development pipeline - confirmed projects to 2020.

3 Construction issues in the pharmaceutical industry - construction costs; contamination control issues; clean rooms; containment laboratories; legislation/guidelines/standards for cleanroom construction. UK science parks and university innovation campuses. UK Enterprise Zones and Catapult Centres. Construction Capability Leading specialist supply companies to the pharmaceutical industry including: cleanroom design, construction and fitout; clean and controlled air environments; clean air products; bio-containment and contamination control; validation and maintenance. Major engineering construction companies involved in the pharmaceutical and biotechnology sectors including contractors, consultants and architects - capability and project experience. Leading Pharmaceutical Companies Overview and Pharmaceutical Company League Tables (Global and UK). Pharmaceutical company profiles: Abbvie; AstraZeneca; Boehringer Ingelheim; GSK; Johnson & Johnson; Merck; Novartis; Pfizer; Roche; Sanofi. Other smaller pharmaceutical/biotechnology companies: biotechnology/therapeutics & diagnostics; biotechnology R&D; pharmaceutical. Report Summary The UK is one of the largest pharmaceutical markets in the world, and the sector makes a greater contribution to the UK economy than any other industrial sector. Though there has been some scaling-back of R&D budgets in the UK in recent years, due to issues such as slowing R&D pipelines, dwindling R&D and healthcare budgets, rising costs, impending 'patent cliffs', increased regulatory controls and increased pricing pressures, pharmaceutical manufacturing investment activity in the UK has been slowly increasing over the last couple of years. Confidence has begun to return to the market and this looks set to continue into , despite the ongoing threat of global economic uncertainty and the more recent threat of the UK's exit from the EU. The level of construction output in the pharmaceutical sector has also grown in recent years, with a focus of developments on high-value laboratories / cleanrooms. Although the volume of work has increased, tender opportunities are becoming increasingly competitive resulting in tighter margins and, despite renewed activity, many UK pharmaceutical producers are not significantly increasing levels of capex. However, the Government has announced a forward pipeline of over 1.9bn worth of capital projects in the pharmaceutical and biotechnology sectors between now and In addition to these confirmed capital projects, a number of expansion plans have been announced by leading pharmaceutical companies, which should be of interest to construction companies and their supply chains operating in the pharmaceutical sector. In addition, a major trend in 2016 is the continued capital investment in science parks and university innovation campuses, with a focus on R&D, and enterprise zones. In terms of construction costs, pharmaceutical R&D and manufacturing facilities are among the most energy intensive and expensive of buildings and are also highly regulated in terms of design and function. Current design and construction trends are moving away from 'bespoke' buildings to flexible and mobile laboratories and cleanrooms requiring less time to design and build and incorporating modern methods of construction. The demand for mobile or modular cleanrooms is increasing driven by industry cutbacks which have forced many pharmaceutical companies to rethink their business and manufacturing operations. Increasing specialisation within the pharmaceutical industry has brought about varied opportunities for construction engineers and contractors to design and develop R&D facilities, pharmaceutical production processes, and assembly of drug delivery devices/systems, construction and maintenance of highly specialised production facilities and

4 associated service/support facilities. So far, the larger pharmaceuticals companies appear to have been largely unscathed by the UK vote to leave the EU - with a significant proportion of the sales of the major pharmaceutical companies generated overseas and a weaker pound likely to result in a significant rise in profits. However, Brexit has the potential to create significant issues for the UK life sciences industry including the regulation of medicines, EU clinical trials regulations, EU funding for research and access to R&D facilities, access to the single market and R&D workforce and intellectual property. The industry is expected to continue to show modest growth over the next few years, reflecting the positive growth factors from the growing UK pharmaceutical industry, but constrained by the economic uncertainty created by the UK's vote to leave the EU. List of Report Contents Contents Listing 1. INTRODUCTION INTRODUCTION SOURCES OF INFORMATION 6 2. SUMMARY AND MARKET PROSPECTS SUMMARY UK PHARMACEUTICALS SECTOR ECONOMIC ENVIRONMENT GDP INFLATION & INTEREST RATES UNEMPLOYMENT HOUSEHOLD CONSUMPTION HOUSING & CONSTRUCTION STERLING POPULATION PROFILE CONCLUSIONS CONSTRUCTION ACTIVITY IN THE UK PHARMACEUTICAL AND BIOTECHNOLOGY SECTORS CONSTRUCTION INDUSTRY Overall Construction Industry Non-Domestic Construction 19

5 4.2 DEFINITION - PHARMACEUTICALS AND BIOTECHNOLOGY MARKET SIZE Current Situation Market Prospects Construction Pipeline CAPITAL EXPENDITURE IN THE PHARMACEUTICAL SECTOR SCIENCE PARKS / UNIVERSITY INNOVATION CAMPUSES ENTERPRISE ZONES CONSTRUCTION ISSUES IN THE PHARMACEUTICAL INDUSTRY Construction Costs Contamination Control Issues CONSTRUCTION CAPABILITY AND SUPPLY CHAIN OVERVIEW OF THE SUPPLY CHAIN CONSTRUCTION CONSULTANTS AND CONTRACTORS SPECIALIST CLEANROOM CONSTRUCTION, SUPPLY AND SERVICES PHARMACEUTICAL INDUSTRY MARKET SIZE AND OVERVIEW MARKET DEFINITION, SIZE AND VALUE Global Pharmaceutical Market UK Pharmaceutical Market Biopharmaceutical Sector Medical Technology Sector Digital Health Sector Genomics Sector Location of Biopharmaceutical Manufacturing Sites PHARMACEUTICAL / BIOTECHNOLOGY CLUSTERS Oxfordshire BioCluster 61

6 6.2.2 London, Cambridge and Stevenage BioClusters Regional Concentration of Pharmaceutical Manufacturing/R&D Future of Pharmaceutical Manufacturing Operations in the UK VALUE OF PHARMACEUTICAL INDUSTRY TO THE UK ECONOMY UK Trade in Pharmaceuticals SALES OF PHARMACEUTICAL DRUGS TO THE NHS PHARMACEUTICAL R&D IN THE UK Government Funding for Science R&D Pharmaceutical Company Investment in R&D R&D Pipeline MARKET DRIVERS AND KEY ISSUES IN THE PHARMACEUTICAL INDUSTRY Key General Issues Facing the Pharmaceutical Sector Future of the UK Pharmaceutical Sector LEADING COMPANIES IN THE PHARMACEUTICAL & BIOTECHNOLOGY SECTORS OVERVIEW PHARMACEUTICAL COMPANY LEAGUE TABLES Global UK COMPANY PROFILES AbbVie AstraZeneca Boehringer Ingelheim GSK Johnson & Johnson Merck Novartis 91

7 7.3.8 Pfizer Roche Sanofi OTHER PHARMACEUTICAL/BIOTECHNOLOGY COMPANIES Biotechnology - Therapeutics/Diagnostics Biotechnology R&D Pharmaceutical 98 Tables & Charts CHART 1 ESTIMATED VALUE OF CONSTRUCTION OUTPUT IN THE PHARMACEUTICALS AND BIOTECH INDUSTRY BY VALUE ( M AT CURRENT PRICES) TABLE 2 GDP DATA KEY CONSTITUENT ELEMENTS 12 CHART 3 INTEREST RATES AND INFLATION (CPI) FROM CHART 4 PDI & SAVINGS RATIO AT CURRENT PRICES TABLE 5 EXCHANGE RATE FLUCTUATIONS STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 16 CHART 6 CONSTRUCTION OUTPUT (GB) NEW WORK AND RMI ANALYSIS 2011 TO 2020 BY VALUE ( BILLION AT CURRENT PRICES) 18 CHART 7 CONSTRUCTION OUTPUT (GB) NEW WORK AND RMI ANALYSIS 2015 TO 2020 BY VALUE ( BILLION AT CURRENT PRICES) 18 CHART 8 NON RESIDENTIAL CONSTRUCTION OUTPUT (GREAT BRITAIN) NEW WORK & RMI - CURRENT PRICES ( BN) CHART 9 NON RESIDENTIAL CONSTRUCTION OUTPUT (GREAT BRITAIN) BY SECTOR CURRENT PRICES ( BN) CHART 10 ESTIMATED VALUE OF CONSTRUCTION OUTPUT IN THE PHARMACEUTICALS AND BIOTECH INDUSTRY BY VALUE ( M AT CURRENT PRICES) TABLE 11 UK SCIENCE AND RESEARCH PROJECTS - FORWARD CONSTRUCTION PIPELINE 26 CHART 12 UK PHARMACEUTICAL INDUSTRY CAPITAL EXPENDITURE - R&D AND MANUFACTURING OPERATIONS ( M)

8 TABLE 13 UK SCIENCE PARKS - SIZE, GEOGRAPHICAL SPREAD, SECTORS AND KEY PARTNERS 30 TABLE 14 AIRBORNE PARTICULATE CLEANLINESS CLASSES FOR CLEANROOMS (BASED ON ISO ) 37 CHART 15 GLOBAL PHARMACEUTICAL MARKET BY VALUE ( BN) CHART 16 SIZE OF THE UK LIFE SCIENCES SECTOR BY TURNOVER AND NO. COMPANIES 2015 (BIOPHARMACEUTICALS AND MEDICAL TECHNOLOGY) (BY % AND VALUE BN) 56 TABLE 17 BIOPHARMACEUTICAL / MEDICAL TECHNOLOGY SECTORS - MAJOR COMPANIES AND GEOGRAPHICAL LOCATION OF FACILITIES IN THE UK - MANUFACTURING, R&D, AND PACKAGING & LOGISTICS 59 CHART 18 UK PHARMACEUTICAL SECTOR - DISTRIBUTION OF UK MANUFACTURING AND R&D SITES 62 CHART 19 PHARMACEUTICAL TRADE IN THE UK BY VALUE ( M) 68 TABLE 20 GOVERNMENT RESOURCE FUNDING FOR SCIENCE AND RESEARCH BY FUNDING PROGRAMME ( M) 70 TABLE 21 GOVERNMENT CAPITAL FUNDING FOR SCIENCE AND RESEARCH BY FUNDING PROGRAMME ( M) 72 TABLE 22 TOP 25 PHARMACEUTICAL AND BIOTECHNOLOGY COMPANIES BY GLOBAL R&D SPEND 2015 ( BN AND BY % OF TURNOVER) 74 TABLE 23 TOP 20 GLOBAL PHARMACEUTICAL AND BIOTECHNOLOGY COMPANIES BY DRUG PIPELINE SIZE IN 2015 AND TABLE 24 TOP 20 GLOBAL PHARMACEUTICAL COMPANIES BY MARKET SHARE (%) TABLE 25 TOP 10 PHARMACEUTICAL COMPANIES MARKET SHARE (%) TABLE 26 ABBVIE - KEY OPERATING AND FINANCIAL SUMMARY DATA (TURNOVER, CAPEX, R&D, PRINCIPAL ACTIVITIES, KEY UK LOCATIONS) 85 TABLE 27 ASTRAZENECA - KEY OPERATING AND FINANCIAL SUMMARY DATA (TURNOVER, CAPEX, R&D, PRINCIPAL ACTIVITIES, KEY UK LOCATIONS) 86 TABLE 28 BOEHRINGER INGELHEIM - KEY OPERATING AND FINANCIAL SUMMARY DATA (TURNOVER, CAPEX, R&D, PRINCIPAL ACTIVITIES, KEY UK LOCATIONS 87 TABLE 29 GSK- KEY OPERATING AND FINANCIAL SUMMARY DATA (TURNOVER, CAPEX, R&D, PRINCIPAL ACTIVITIES, KEY UK LOCATIONS 88 TABLE 30 JOHNSON & JOHNSON - KEY OPERATING AND FINANCIAL SUMMARY DATA (TURNOVER, CAPEX, R&D, PRINCIPAL ACTIVITIES, KEY UK LOCATIONS) 90 TABLE 31 MERCK - KEY OPERATING AND FINANCIAL SUMMARY DATA (TURNOVER, CAPEX, R&D, PRINCIPAL ACTIVITIES, KEY UK LOCATIONS) 91

9 TABLE 32 NOVARTIS - KEY OPERATING AND FINANCIAL SUMMARY DATA (TURNOVER, CAPEX, R&D, PRINCIPAL ACTIVITIES, KEY UK LOCATIONS) 92 TABLE 33 PFIZER- KEY OPERATING AND FINANCIAL SUMMARY DATA (TURNOVER, CAPEX, R&D, PRINCIPAL ACTIVITIES, KEY UK LOCATIONS) 94 TABLE 34 ROCHE - KEY OPERATING AND FINANCIAL SUMMARY DATA (TURNOVER, CAPEX, R&D, PRINCIPAL ACTIVITIES, KEY UK LOCATIONS) 95 TABLE 35 SANOFI - KEY OPERATING AND FINANCIAL SUMMARY DATA (TURNOVER, CAPEX, R&D, PRINCIPAL ACTIVITIES, KEY UK LOCATIONS) 96 The 'Pharmaceutical and Biotechnology Construction Sector Report - UK Analysis' costs 795+VAT (if applicable) for a PDF version. Other formats are available - click here for a information about available report formats. All AMA reports are sold with a single user licence as standard. For more information about AMA licences click here. About AMA Research Established in 1989, AMA Research is widely recognised as the leading specialist provider of market research to the UK building and construction industries. AMA s research and analysis goes beyond the more commonly available range of statistical and company information to provide expert, informed commentary and in-depth market analysis, making the reports a valuable and relevant resource for understanding the UK s construction and associated markets. We offer the following: Consultancy and bespoke research projects Published research reports high quality, detailed research reviews covering a wide range of environmental, building and construction products. Our extensive experience and in-house research database enables us to offer specialised and flexible bespoke research services, as well as giving excellent value for money. Our experienced in-house team of researchers are experts in their fields and adept in conducting original and relevant research for reports or bespoke projects, and key decision makers across the building and construction industries, both in the UK and abroad, frequently use our high-quality reports as their primary source of market data. To find out more about AMA Research, visit: or call us on