Life sciences in Cataloniacatalonia.com/.content/documents/Life_sciences_Sector_Snapshot... · Source: The Bioregion of Catalonia, 2017, Biocat. Foreign trade data obtained from Estacom,

Strategy and Competitive Intelligence Unit

Life sciences in

Catalonia

April 2018

Sector Snapshot


Life sciences in Catalonia: Sector Snapshot

ACCIÓ

Government of Catalonia

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Author

ACCIÓ Strategy and Competitive Intelligence Unit

Barcelona, April 2018

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Life Sciences in Catalonia | Sector Snapshot April 18 | 3


1. The life sciences industry

Life sciences industry definition

The global Life Sciences industry: Key data

2. The life sciences industry in Catalonia

Life sciences in Catalonia, 2017: Key data

Catalan life sciences industry competitiveness

Catalonia, the best place for the life sciences industry

Leading life sciences ecosystem in Catalonia

3. Business opportunities in the life sciences industry

International market opportunities

Investment Opportunities

Technological opportunities

.

Index



1. The life sciences industry



Life sciences industry definition

Source: KPMG & European Commission

Pharma

Biotech

Medical

eHealth

devices

Life sciences industry can be defined as the combination of 4 main subsectors

Pharmaceuticals are commercialenterprises that research, develop,produce and sell drugs and othermedicines. These enterprises aretypically large and deal both inbranded and generic compounds.

Biotechnology companies arethose that employ living organismsor biological substances for thedevelopment of products andservices with applications innumerous fields such as wastemanagement, food processing,agriculture and pharmaceutics.

Medical devices companies, alsoknown as medtech, are involved inresearch, development, productionand marketing of systems andtechnologies for medical applicationsin humans and animals.

eHealth refers to tools and servicesusing information andcommunication technologies (ICTs)that can improve prevention,diagnosis, treatment, monitoring andmanagement. It includes informationand data sharing between patientsand health service providers,hospitals, health professionals andhealth information networks.



Source: Deloitte, 2017 global life sciences outlook. The Pharmaceutical Industry in Figures, 2017,

European Federation of Pharmaceutical Industries and Associations. ICEX, Spain for Biotechnology,

Pharmacy and Life Sciences, 2017.Biotechnology in Europe, 2014,Ernst & Young.

The global life sciences industry

Pharmaceutical

Biotechnology

Medical Devices

eHealth

The worldwide pharmaceutical turnover is expected to grow

4.4% annually until 2020.

Top 10 pharma companies accounted for 35% of the wholesubsector turnover in 2016

Europe has a positive balance of 96,291€M, led by

Germany, Switzerland, France, Italy and UK.

Spain ranks 5th in turnover, 6th in job creation, and 8th inpharma R&D spending in Europe

The slow but constant growth of biotech companies

worldwide will continue due to the greater global investmentin technology, the ageing population and the personalization

of cures.

European companies had demonstrated moderate growthduring the beginnings of the actual decade.

Indirect biotechnology activity turnover in Spain is up to

107,788€M, with an increase of 13.28% and is 10.35% ofSpain’s GDP.

Medical devices worldwide are expected to grow strongly at

a pace of 5.3%annually.

The European market is considered the second in the world,accounting for 29%of total industry’s value.

Spain has a strong public health system and 2,300M€ of

exports, 74% directed to European markets.

A dramatic increase in this subsector’s worldwide turnover

is expected due to new technological infrastructures that willboost telemedicine and mobile health.

In 2015, the 70% of EU member states already had national

eHealth policy or strategy.

Spain has been a pioneer in the inclusion of eHealthtechnologies



2. The life sciences industry in

Catalonia



The Catalan life sciences industry: Key data

Source: The Bioregion of Catalonia, 2017, Biocat.

Foreign trade data obtained from Estacom, 2017 provisional.

The life sciences industry in Catalonia is robust and a hot spot for business & innovation

871 companies and

89 research organizations

1st

3rd

4th

in pharma

in biotech

in medtech

Company density rank in Europe

Top Spanish

pharma

companies

7 out of 7

5 out of 5

World top life

sciences

companies

46,676 life sciences employees

+90,000 hospital employees

+5,660 researchers

+11,000 employees in research centers

15,956€M turnover in 2017

11.1% increase over 2014

7.1% of Catalan GDP

Main export destinations

1st Switzerland

2nd Germany

3rd France



Source: Own elaboration based on fDi Markets, 2013 – 2017.


Attractive for foreign investors

From 2013 to 2017…

THE CATALAN LIFE SCIENCES

INDUSTRY REGISTERED...

28 FDI projects

€670 M of capital

investment

1,543 jobs created

CATALONIA HAS

CONCENTRATED...

47.5% of the FDI

projects received

67.2% of the capital

investment

57.8% of the jobs

created

...within the Life Sciences sector in

Spain.

CATALONIA HAS ALSO

BEEN...

6th region in capital

investment

...within the Life Sciences sector in

Western Europe.

6th region in jobs created

9th region in number of

FDI projects




Source: Datacomex, 2017. (Data for 2017 is provisional).

International and open trade

LIFE SCIENCES INDUSTRY

TRADE BALANCE (2017)

The Catalan life sciences

trade balance is positive,

with a trade surplus of more

than 49€M.

Pharma Catalan exports

represent 89.8% over

total exports.

MAIN COMMERCIAL

PARTNERS (2017)

Switzerland, Germany

and France, in terms of

exports

Germany, Switzerland

and USA, in terms of

imports

CATALONIA LIFE SCIENCES

INDUSTRY EXPORTS HAVE

REPRESENTED... (2017)

7.9% over total

Catalan exports

45.2% of Spanish

life sciences exports



Source: INE

Catalan life sciences industry competitivenessInnovative and entrepreneurial

Catalonia is at the forefront of innovation…

1.46% of its GDP dedicated to

R&D.

9,282 innovative companies,

representing 22.2% of the

Spanish total.

Total R&D expenditure of

€3,103.4M, 23.4% of Spain’s

total.

12th state among EU countries in

terms of R&D personnel over total

employment.

IN LIFE SCIENCES...

3 major scientific leading facilities

78% of Spanish approved trials involve at least one centre located in

Catalonia. Spain ranks second in Europe in number of clinical trials

40 life sciences research

centres with a wide range of

specialties

2 major technologic facilities

ACCIÓ, Winning Agency for Best

R&D Support (FDI Strategy

Awards, 2017).

14 life sciences technologic

and scientific parks

Note: The use of these trademar ks is for i nfor mati ve purposes onl y. Trademar ks mentioned i n this document are the r egistered tr ademar ks of the

companies to which they belong and are not owned byACCIÓ. T his is a partial and ill ustrati ve representation of companies that for m part of the lifesciences ecosystem in Catalonia; however, there may exist other companies that have not been included in the study.



Catalonia is the best region for life sciences

STRONG AND INNOVATIVE INDUSTRY

TOP R&D HUB STRATEGIC LOCATION AND ACCESS TO MARKETS

INTERNATIONAL CONFERENCES & TRADE FAIRS

POOL OF LOCAL AND INTERNATIONAL TALENT ATTRACTION

CREATIVITY

Europe’s densest pharma env ironment together with

a fast-paced growing medical devices sector and a

highly innov ative biotech ecosystem form one of the

strongest life sciencesindustries in the world.

Barcelona is globally connected with its world-class

airports, ports and highways. With 200 international

destinations in 57 countries, Barcelona Airport has

100 operating airlines and is considered the 1st Best

airport in Southern Europe. The Barcelona port

connects with more than 825 destinations, 200 of them

overseas.

The most important international meetings of the

life sciences industry are in Barcelona. In addition,

related sectors as ICT also have its leading

congresses in Barcelona, asthe MWC or 4YFN.

The Catalan creative business culture is proved by

outstanding innovation and R&D, as well as a large

creative workforce, which represents over 100,000

jobs in Barcelona.

Barcelona has been awarded as the world’s top

emerging creative city, 4th most global creative city,

and the world’s 4th tech city.

Talent from all over the world is attracted to

Catalonia thanks to its high quality of life, cultural

diversity, cosmopolitan atmosphere and availability of

qualified multi-l ingual personnel.

Top Catalan universities train local and international

students offering life sciences degrees and masters.

Catalonia offers leading scientific & research

centres for the life sciences industry. Catalans also

lead attraction within Spain with more than the 50%

of R&D projects, capital investment and jobs created

(2011-2016), being the 4th European region in

pharmaceutical preparations in FDI attraction.

Source: ACCIÓ



The life sciences ecosystem in Catalonia

Top Companies

Medical Devices

eHealth

Healthtech Hardware & Wearables

Biotech & Pharma

Startups

Universities Conferences and Fairs

Clusters, Associations and Agencies

University hospitals Hospital research inst.

Note: The use of these tr ademar ks is for informati ve purposes onl y. Trademar ks mentioned i n this document are the register ed tr ademar ks of the compani es to which they belong and are not owned by ACCIÓ. This is a parti al and illustrati ve representation

of companies that form part of the life sciences ecosystem in Catalonia; however, there may exist other companies that have not been included in the study.

Source: ACCIÓ and The Bioregion of Catalonia, 2017

Pharma & Biotech

Life sciences accelerators

Other top accelerators & incubators

Business Angels

International venture capital funds & investors

Local venture capital funds



3. Opportunities in the life

sciences industry



AMERICAASIA/

OCEANIAEUROPE

To f oster research and innovation, especially in personalizedtreatments, 350M CAD will be spent by the government, as well

as 300M to eHealth programs.

CANADA

International market opportunities

Mexico has great opportunities in the development of newbusiness models, based on a premium products, and access and

av ailability of medications.

MEXICO

USA concentrates the highest number of life sciences FDIprojects, the highest consumer expenditure on health per capita

and the top lif e sciences companies.

UNITED STATES

The Australian public health expense is expected to double in 2026, mainly in medicaldev ices, which have grown 7% lately, reaching 12.3B AUD.

AUSTRALIA

China's biomedical market will become the 2nd largest in the world, offering greatopportunities in medical devices and biomedicine in the near future.

CHINA

Biotech, with nearly 800 companies, is a sector valued in 11B$ in India. This industryis expected to grow in this country at a CAGR of 30.4% toreach 100$Bin 2025.

INDIA

JAPAN

SOUTH KOREA

The French Government presented a national 2020 eHealth strategy to prepare for anaging population, which is a source of opportunities for Catalan innovative companies.

FRANCE

Germany has one of the strongest lif e sciences ecosystems, with a high FDI reception,imports v olumeand growth, together with important and innovative multinationals.

GERMANY

The pharmaceutical market is being liberalized in Italy, being now receptive to newinternational companies that offer differentiated products with high added value.

ITALY

Netherlands’s high-quality clinical research, competitive tax support measures andstrategic location are thecontext of one of the most denseecosystems in Europe.

NETHERLANDS

Switzerland is the country with the highest imports from Catalonia in the lif e sciencesindustry . It is also the2nd country with thehighest health consumer expenditure.

SWITZERLAND

The British Gov ernment is acquiring innov ative life sciences solutions to modernize thepublic health system, with thefinal goal to improve the productivity.

UNITED KINGDOMSouth Korea is the most innovative country in the world, also has the largest R&Dexpenditure over GDP and the 2nd largest biotech ecosystem in our study.

The Japanese government wants to multiply per six times its biotech market by 2030.Japan also has the highest dependency and life expectancy rate in the world.

Source: ACCIÓ



Investment opportunitiesValue chain

Clinical trials

Spain is the 2nd country in Europe in numberof clinical trials, and 78% of the state’s trialsinvolve at least one center in Catalonia. In2015 we had more than 2,740 sitesparticipating in clinical trials, featuring 2,000expert researchers and more than 13,400patients recruited.

Catalonia has a strong logistics ecosystem,specialized in pharmaceutics, healthcare, APIs,etc, in line with all current legislation. Majormultinational companies (Sanofi, Synthon,Braun, Moehs or Grifols) operateinternationally from Catalonia, and othercompanies (Roche Diagnostics or Disalfarm)have established logistics centres in theregion to operate on a national andsouthern Europe level. Catalonia also hasfirst class infrastructures: roads, port andairport with specialized pharmaceutic facilities.

Logistics centers

R&D centers

The powerful Catalan life sciences R&Decosystem is made up of top tech &scientific centres, universities, universityhospitals and a dense life sciencescompany ecosystem. Catalonia is a topR&D FDI destination, being the 5th regionin total R&D FDI in Europe and 4th inpharmaceutical preparations.

Pharma production

Top global Pharma companies haveinstalled their productive centres inCatalonia, creating Europe’s densestpharma ecosystem. Specifically, the finechemical subsector concentrates 75% ofSpanish production here, makingCatalonia home to the world’s subsectorleaders.

Source: ACCIÓ



Trends and sector opportunities

Medtech

Catalonia has a fast-growing (98% in 3 years)

medtech ecosystem , considered the 4th densest in

Europe , and concentrating 42% of Spanish

medtech companies. Composed mainly (47.4%) of

high tech companies, the medtech Catalan

ecosystem has received FDI from the top sector’s

global companies.

eHealth

Catalonia is the perfect place to either develop or

implement eHealth applications. The large and

innovative start-up ecosystem , part of the Catalan

top R&D and tech hub (considered 5th of Europe),

together w ith the early adopter Catalan society,

makes our region the perfect place for eHealth.

Silver economy

An aging population and a strong silver economy

ecosystem makes Catalonia the perfect place for

these companies. More than 500 companies

perform silver activities in Catalonia, w hich have a

dedicated turnover of up to 9,000€M. Pharma and

healthy food are the main silver economy subsectors

in Catalonia.

Big data

Catalonia is at the forefront of big data in Europe,

ahead of UK and Germany, in the number of big data

projects. More than 200 big data start-ups, together

with top multinational companies and the leading

Big Data conference makes Catalonia the most

competit ive location for Big data hubs, such as those

established by Nestlé or Roche. Spain has been a

pioneer in the inclusion of information technologies in

the life sciences industry, such as the electronic health

records system and digital prescription. Big data

research projects on diseases as diabetes and

Parkinson have been carried out in the BSC and

CRG, and published in important journals.

Oncology

Defined as a top research area for the Catalan

bioregion, oncology concentrates 36% of the total

biomedical investment in innovation in Catalonia.

Its leading research centres and personalities focus

35% of all Catalan medical trials in the oncology

field. Catalan innovation and R&D is conducted by its

world-renow ned oncology leaders, as w ell as the top-

notch Catalan university hospitals and research

centres. For example, IRB has recently discovered a

new colon cancer treatment.

Investment opportunities

Source: ACCIÓ



Technological opportunities

Artificial intelligence VR & AR Internet of Things Robotics 3D printingBlockchain

12 ground-breaking technologies are identified as the main drivers of evolution and disruption. Health is the

sector in which more of these technologies are expected to drive to dramatic changes:

Nanotech Quantic science

Biotechnology Genomics PharmageneticsNeurosciences

The Catalan life sciences and biology ecosystem is composed of some of the strongest and most innovative companies and researchinstitutions. Having the densest pharma ecosystem of Europe, the biggest biotech industry in Spain and a high technological and fast-growing medical devices sector, Catalonia offers the most complete life sciences business ecosystem in Southern Europe. Catalonia has aswell over 40 leading scientific, technical & research centres which are strategic for the development of life sciences industries.Innovation is also one of the main characteristics of the Catalan life sciences industry, with more than 95 active spin-offs and 352 start-ups,together with more than 200 related companies emerging over the last 5 years. In addition, Neurosciences, genomics & epigenetics areclassified as topCatalan bioregion capabilities by Biocat, the strategic Catalan life sciences agent and catalyst.

Source: Technological tendencies map, 2017

4 of these 12 technologies are life sciences specific:


Take a look at the full report:

http://catalonia.com/.content/documents/life-sciences-in-catalonia.pdf

More information about the sector and related news:

http://catalonia.com/trade-with-catalonia/life-sciences.jsp

Passeig de Gràcia, 129

08008 Barcelonawww.accio.gencat.cat

www.catalonia.com

@accio_cat

@catalonia_ti

Documents

Life sciences in Cataloniacatalonia.com/.content/documents/Life_sciences_Sector_Snapshot... · Source: The Bioregion of Catalonia, 2017, Biocat. Foreign trade data obtained from Estacom,