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Released April 20, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The Pharmaceutical & Biotech Industry continues to do gangbuster business, and it continues to spend lots of money on new projects.
Moderna Incorporated's (NASDAQ:MRNA) (Cambridge, Massachusetts) profits rocketed to $12.2 billion in 2021, compared with a $747 million net loss in 2020, as the company ratcheted up production of its COVID-19 vaccine. Meanwhile, fellow COVID-19 vaccine manufacturer Pfizer Incorporated, (NYSE:PFE) (New York, New York) reported $21.9 billion in earnings for 2021, up from $9.1 billion in 2020.
Just the global pharmaceutical contract manufacturing market alone was valued at $115.8 billion in 2021, and was projected to reach $329.7 billion in 2032, according to Visiongain Limited (London, England), a market research firm.
In North America, pharma-bio project spending continues to grow. In March, project construction starts by the industry amounted to nearly $8.3 billion, up 29.3% from the same month in 2021, according to Industrial Info's North American Construction Starts Index. The number of projects stood at 430 in March, down 9.7% from a year earlier.
In just the U.S., pharma-bio project spending rose 35% to more than $8 billion in March.
Demand for pharma and biotech products continues to support increases in domestic production capacity. This is not just coming from COVID-19, although Industrial Info is tracking more projects directly attributable to the pandemic; but also from the need to provide products for an aging population.
Traditionally, this additional capacity would come from grassroot or brownfield developments, but Industrial Info is seeing a major increase in the amount of expansions and unit additions at existing plants and facilities. Investments in Environmental, Social and Governance (ESG), along with adding more automation and digitization, also are on the rise.
Mega projects--those valued at $500 million or more--continue to be planned. Some of these are stand-alone manufacturing sites, while others are the large life-science campuses seeking multiple tenants from the private and public sectors. There also is a lot of brownfield activity still active and being planned.
Examples of North American pharma-bio project starts in March include:
Moderna Incorporated's (NASDAQ:MRNA) (Cambridge, Massachusetts) profits rocketed to $12.2 billion in 2021, compared with a $747 million net loss in 2020, as the company ratcheted up production of its COVID-19 vaccine. Meanwhile, fellow COVID-19 vaccine manufacturer Pfizer Incorporated, (NYSE:PFE) (New York, New York) reported $21.9 billion in earnings for 2021, up from $9.1 billion in 2020.
Just the global pharmaceutical contract manufacturing market alone was valued at $115.8 billion in 2021, and was projected to reach $329.7 billion in 2032, according to Visiongain Limited (London, England), a market research firm.
In North America, pharma-bio project spending continues to grow. In March, project construction starts by the industry amounted to nearly $8.3 billion, up 29.3% from the same month in 2021, according to Industrial Info's North American Construction Starts Index. The number of projects stood at 430 in March, down 9.7% from a year earlier.
In just the U.S., pharma-bio project spending rose 35% to more than $8 billion in March.
Demand for pharma and biotech products continues to support increases in domestic production capacity. This is not just coming from COVID-19, although Industrial Info is tracking more projects directly attributable to the pandemic; but also from the need to provide products for an aging population.
Traditionally, this additional capacity would come from grassroot or brownfield developments, but Industrial Info is seeing a major increase in the amount of expansions and unit additions at existing plants and facilities. Investments in Environmental, Social and Governance (ESG), along with adding more automation and digitization, also are on the rise.
Mega projects--those valued at $500 million or more--continue to be planned. Some of these are stand-alone manufacturing sites, while others are the large life-science campuses seeking multiple tenants from the private and public sectors. There also is a lot of brownfield activity still active and being planned.
Examples of North American pharma-bio project starts in March include:
- Lane Partners Limited Liability Company (Menlo Park, California) and LB2 Partners' (Belvedere, California) Berkley Commons research and development building in Berkley, California, a brownfield project consisting of two buildings and parking garages. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pharmaceutical & Biotech Project Database can click here for the project report.
- The HYM Investment Group Limited Liability Company's (Boston, Massachusetts) Suffolk Downs Life Science Center in Boston, Massachusetts, consisting of a multi-phased project to construct a six-story, 280,000-square-foot building for high-end biomanufacturing and research and development. Subscribers can click here for the project report.
- Ensemble Real Estate Solutions' Navy Yard Life-Science Mixed-Use Building in Philadelphia, Pennsylvania, which includes a 120,000-square-foot building and equipment for multi-use life science tenants. Click here for the project report.
In all, the North American Construction Starts Index, which covers 12 industries across the U.S., Canada and Mexico, totaled $78 billion last month, up 13.6% when compared with March 2021. Eight of the 12 industries saw increases in construction start spending, while four industries--Oil & Gas Pipelines, Alternative Fuel, Pulp, Paper & Wood, and Food & Beverages--experienced declines.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
