Shifting Into High Gear – Life Sciences Sector Survival Opportunities

Author Charlie Cutler Read bio
Tags: life sciences sector
Date: December 5, 2021

The innovation engine is shifting into high gear.

The future of the life sciences industry was thrust into the real spotlight amid the COVID-19 pandemic

And in the light of the unprecedented number of medical breakthroughs occurring in health care in the few last months – life science is viewed as:

  1. A hopeful solution to the crisis (and basically all the future ones)
  2. An engaging pursuit for capitalists and real estate investors

We believe health care’s achievements are only getting started, so here we explore what this high gear shift means for the sector.

The Trajectory Of Expansion

This momentum had been building for decades, and like the technology boom that grew out of Silicon Valley over the last 20 years, the life sciences industry is on a trajectory of similar expansion.

With over 46 markets examined across the U.S., it seems that San Francisco is one of the top 10 life sciences cluster markets with opportunities for continued growth thanks to:

Simultaneously, the rend rouse three critical questions that are shaping fundamental trends in the industry:

  1. What’s driving life science growth and how much further can it go?
  2. Can they, and how much longer can tenant demand sustain this high gear pace?
  3. What are investors doing to meet the swell of demand (a.k.a, will there be enough supply to support this growth)?

One is for sure; our advanced scientific analytics and capital investment are leading to a surge of new drug approvals and boosting revenues.

Large chimneys on a factory building

Health Care Innovation Ramps Up

Ultra-low interest rates and COVID-related research of the past year drove higher investor enthusiasm for health care. This allowed the life science industry to raise record levels of capital

A total of US$51 billion in venture capital was invested in health care last year. Specifically in biotech and life science. This means an increase of 65% compared to 2019, and about three times as much as the prior year.

We are witnessing life science stocks climb by an average of 89%. This is expected to continue at a swift pace, especially spurring further innovation.

Large-cap pharmaceutical companies have been ramping up their investments, rapidly buying innovation through the acquisition of small- and mid-size biotechs.

Improvement In Clinical Trials and Disease Targeting

Productivity within the pharmaceutical industry has been improving too. Companies are now increasingly validating drug targets and using biomarkers in clinical trials to identify patient pools; both of which have helped reduce attrition rates in later-stage studies.

More and more, pharma companies are becoming more equipped to target and identify rare diseases, employ new mechanisms of action and raise the odds of drug approval.

Advances and Breakthroughs Driving Sales Growth

Since last year brought many medical breakthroughs, this surge in medical innovation had a commensurate impact on biopharma revenues

Last year, sales of biotech blockbuster drugs neared US$300 billion, which is a little less than 50 times the amount from two decades ago.

Rising global demand for health care is helping drive growth. This is crucial because having more drugs means we are able to target patients with high, unmet medical needs. 

The Next Chapter: The Internet Of Health Care

Innovation is taking place throughout the health care sector. In medical devices, we are witnessing an unprecedented convergence of scientific and technological advances that could have life-changing potential for patients.

Pharmaceutical giants are partnering with companies that develop, manufacture, and distribute monitoring systems for various illness management; some of which can be even connected to our smartphones.

These partnerships are intended to amass that data and, with the aid of machine learning, discover patterns across thousands of patients (for example, diabetics) that could lead to better treatment plans.

We expect this type of “connection” in the life science sector to gain its true form in the future years, particularly following COVID-19. 

The pandemic underscored the importance of managing multiple health conditions, as well as the need for remote care options. We are here to accommodate those particular needs.