The life sciences industry has seen rapid growth in Asia Pacific in recent years, supported by expanding demand from the region’s ageing population and a steady flow of mergers & acquisitions. However, the sector still faces a number of major barriers to growth including include weaker spending in emerging markets and the possibility of a new patent cliff in 2020.
Global pharmaceutical giants from the U.S. and Europe dominate the market, with the top 10 global life sciences companies accounting for nearly half of the top 100 life sciences companies’ revenue in 2016. Asia Pacific firms are expanding steadily by concentrating on headcount growth and corporate expansion.
The leading life sciences giants invest significant amounts of capital in R&D, equivalent to over 10% of their revenue. This requires them to maintain strict cost controls over other operating costs such as real estate in order to maintain their bottom line profits.
This report by CBRE Research tracks the growth of the life sciences industry in Asia Pacific and analyses leading firms’ real estate strategy. Key trends include office relocation for cost saving, alternative workplace strategy and the centralisation of business services.