Research and development for new medicines is a never-ending quest. Much of this activity in the U.S. is taking place in key hubs across the nation.
JLL’s recently-published seventh annual Life Sciences Outlook examines the state of the life sciences industry.
“Big Pharma is entering new territory as major players question whether incubator labs represent a threat or opportunity as the primary generator of new products,” Roger Humphrey, executive managing director and leader of JLL’s Life Sciences group, said in a statement. “This new market dynamic presents a unique opportunity for traditional industry players. By casting a wide net of investment in a broad portfolio of young ventures, a big biopharmaceutical company can leverage outside scientific talent and gain access to breakthrough discoveries in their strategic areas of interest.”
Real estate costs are high, however, and space can be at a premium. So one trend the report identifies is the proliferation of life sciences incubators.
For example, New York’s Alexandria LaunchLabs in Manhattan’s East Side Medical Corridor, was the first biotech incubator to launch in New York City. The 15,000-sq.-ft. facility is now home to about 20 companies.
Massachusetts alone is home to more than two dozen incubators, according to JLL.
As part of the report, JLL ranked the top 16 life sciences clusters in the U.S. There is some disparity between these markets, however. For example, the top two markets of San Francisco and Boston received more than two-thirds of venture capital funding in the sector.
“Top markets such as Boston and San Francisco continue to offer the life sciences innovation trifecta of access to talent funding and real estate inventory in strong life sciences, healthcare and tech communities,” said Humphrey. “So, for those life sciences companies where innovation is king, the return often justifies the investment in these markets despite the high cost of space and talent.”
The following gallery provides a look at these markets, including some key stats from JLL’s report.