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Biotech Industry Trends: Navigating a Changing Landscape
The biotech industry has fluctuated over the past three years. What we’re hearing at events, like the ISPE Product Show, and in ongoing conversations with architects, OPMs, and contractors, is that the projects in this industry are achieving, on average, 50% of their projected revenue for 2023. What’s causing this fluctuation, and how can professionals in this field adapt to the changing landscape? We’ll delve into the influencing factors and offer insights to help those navigating this dynamic industry.
A BIOTECH SURGE & SLOWDOWN
At the beginning of the COVID-19 pandemic, venture capital flooded the biotech industry. This surge in funding aimed to support biotech companies as they tried to combat the pandemic and prevent future health crises. Government funding complemented private investments, creating a booming marketplace.
But, as the market became flooded with small startups and interest rates began to rise, venture capital became tighter. Many small startups found it challenging to secure funding, leading to a reduced number of new smaller companies. The industry saw a shift back to how it was before the pandemic, with the money flowing predominantly to medium-sized or emerging companies that demonstrated a strong pipeline, innovative products, or promising clinical trial prospects.
PLATEAU & GROWTH: WHERE WE ARE NOW
Ultimately, this shift in funding has led to a plateau in the biotech market today, and supply has started to meet demand. There is now more real estate space available in most markets nationwide than required. Spec suites, once in high demand, are now becoming readily available. The same is true of manufacturing suites and contract manufacturing space.
However, one segment that continues to thrive is cell and gene therapy, which presents growth opportunities in this field. Our team is part of this growth, supporting the design of cell and gene for companies like, AstraZeneca, Emergent, and Kite Pharma, in eight of the top 10 biotech markets, so that people can get better help, quicker.
STRATEGIES FOR SUCCESS
Due to the influx of funding at the beginning of the pandemic, many companies entered the biotech market without prior experience. Choosing the right building or space within a building becomes more important as space becomes more available. As a subject matter expert with over 35 years of industry experience, I can help our clients make informed decisions that save money from day one and throughout the lease or building’s lifecycle.
To be successful in this evolving market, staying informed, seeking subject matter experts, and making informed decisions are crucial. The right choices can lead to not only successful projects but also cost savings and sustainability over the long term. The changes in the biotech market offer opportunities for growth and innovation, and we feel well-positioned to support these opportunities. If you have any questions about how to navigate this changing landscape, please reach out to me at rdoyle@wbengineering.com. To learn more about our other areas of expertise in the science and technology market sector, please click here.
