Global Life Sciences Cluster Report 2011 - Jones Lang LaSalle

France
Pharmaceutical production is spread among several big urban
areas, essentially in the Paris region, the centre of France
(Centre) and the south east (Rhône-Alpes).
The life sciences market in France, like many mature life
sciences markets globally, is in the midst of significant change.
Restructuring of operations, consolidation, mergers and
acquisitions are all impacting the overall shape and geography
of the sector, leading many industry participants to challenge
and re-think the way they structure and coordinate their
different activities.
There is a clear trend towards outsourcing, especially of
pharmaceutical production, to better focus on the most strategic
activities. An important concern of life science companies is
cost reduction via the rationalization of the real estate portfolio.
Many larger groups are looking at multi-site consolidation
options and lease renegotiation.
Business rationalization is also having a clear impact on space
utilization and translates directly into real estate strategies.
A move away from working in cellular offices has been evident,
with several companies now introducing more open plan
designs for headquarters. Many industry participants have also
increased densities and have restructured portfolios as part of
wider rationalization. Sanofi, Merck and Roche provide good
recent examples of this trend of restructuring and rationalization.
To optimize resources, sale-lease back operations have
also been favored. Merck and BMS are two recent examples
of companies that have chosen this route to raise capital
and increase occupational flexibility.
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Industry framework
Intellectual capacity & innovation capital
The biopharmaceutical sector in France involves more than
104,000 employees. Education is also an important asset,
with more than 18,000 new highly qualified graduates produced
by the French higher education system each year.
The sector benefits from significant investment, with about
€4.9 billion ($6.9 billion) 1 spent annually on R&D, according
to 2008 figures. The biotech network is especially dynamic
in France, with strong leaders operating in niche markets and
growing on the international scene including BioAlliance, Nicox
and ExoHit.
The French landscape
is clearly dominated by
the Paris region due to
its strategic location and
its high education level,
important concentration
of prestigious hospitals
and high-tech research.
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