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Researched by Annette Kreuger for Industrial Info Resources (Sugar Land, Texas)--Along with its success in attracting beach lovers to the mighty Pacific, the U.S. West Coast region is an investment magnet for the Pharmaceutical-Biotech Industry, indeed for all life science sectors. The region, which comprises California, Washington, Oregon, Hawaii and Alaska, is on record to launch $1.7 billion in capital and MRO (maintenance) projects during second-quarter 2016.
The life science industry's capital investment arena is not an inexpensive venture. Depending on the complexity of development or process required by the end user, as well as the location of the project itself, construction costs can reach the $1,000 per square foot stratosphere for full build out. Factor in a state like a California, one laden with environmental reviews and seemingly endless permitting hurdles, the planning process can be as intense as the actual construction. While cost and ease of process is always a major consideration, it appears that the strong intellectual capital draw and established industry presence continues to trump the negatives.
According to Industrial Info's Pharmaceutical & Biotech Online Database, the $1.7 billion second-quarter West Coast investment translates into just 23 life science projects. The average total investment value (TIV) is $73 million, with individual investment values ranging from $1 million to $225 million. The second-quarter TIV reflects a solid 13% increase when compared with the same timeframe in 2015, when 25 projects began construction with a TIV of $1.5 billion. As the industry's corporate planners prepare for future capacity needs, along with ensuring a steady stream of new pipeline products, the spike in spending is the result of various factors, including long-term projects finally being funded after years of planning. They are a blend of both industry and institutional projects, with a mix of research and manufacturing.
As was the case several years ago when the lines of demarcation became blurred between pharmaceutical and biopharmaceutical companies, as product lines from both found their way under one parent, so, now has the relationship between government/institutional entities and corporations. Big Pharma (or Big Bio, as the case may be), increasingly help fund and support research efforts on college campuses, along with the growing count of life science business accelerator/incubators.
Click here for access to the 2016 North America Pharmaceutical & Biotech Industry Outlook.
The diversity of the projects is reflected by a sampling of just three active reports. Gilead Sciences (NASDAQ:GILD) (Foster City, California) is investing $150 million to construct a drug development laboratory targeting cardiovascular, hepatitis B&C and HIV/AIDS therapeutics at its growing Foster City campus.
Further up the coast in Moses Lake, Washington, AstaReal Technologies is considering construction of a $30 million algae-based anti-inflammatory active pharmaceutical ingredients (APIs) contract manufacturing (CMO) plant expansion. Plans call for the existing 59,000 square-foot plant to be expanded by 50,000 square feet.
In Portland, Oregon, the Oregon Health and Science University is nearing launch of construction on the $160 million Knight Cancer Research Institute. Sited on the school's South Waterfront campus, the project will add an eight-story 330,000 square-foot building devoted to the development and discovery of new cancer-related therapeutics and treatment options.
As always, there remains the possibility that some of the projects will be delayed, put on hold or canceled. The individual status of each of the 23 projects will be carefully monitored and updated for changes. At the same time, new projects are being added as they are uncovered.
Listed below are the pharma-bio projects which are expected to kick of in second-quarter 2016.
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The life science industry's capital investment arena is not an inexpensive venture. Depending on the complexity of development or process required by the end user, as well as the location of the project itself, construction costs can reach the $1,000 per square foot stratosphere for full build out. Factor in a state like a California, one laden with environmental reviews and seemingly endless permitting hurdles, the planning process can be as intense as the actual construction. While cost and ease of process is always a major consideration, it appears that the strong intellectual capital draw and established industry presence continues to trump the negatives.
According to Industrial Info's Pharmaceutical & Biotech Online Database, the $1.7 billion second-quarter West Coast investment translates into just 23 life science projects. The average total investment value (TIV) is $73 million, with individual investment values ranging from $1 million to $225 million. The second-quarter TIV reflects a solid 13% increase when compared with the same timeframe in 2015, when 25 projects began construction with a TIV of $1.5 billion. As the industry's corporate planners prepare for future capacity needs, along with ensuring a steady stream of new pipeline products, the spike in spending is the result of various factors, including long-term projects finally being funded after years of planning. They are a blend of both industry and institutional projects, with a mix of research and manufacturing.
As was the case several years ago when the lines of demarcation became blurred between pharmaceutical and biopharmaceutical companies, as product lines from both found their way under one parent, so, now has the relationship between government/institutional entities and corporations. Big Pharma (or Big Bio, as the case may be), increasingly help fund and support research efforts on college campuses, along with the growing count of life science business accelerator/incubators.
Click here for access to the 2016 North America Pharmaceutical & Biotech Industry Outlook.
The diversity of the projects is reflected by a sampling of just three active reports. Gilead Sciences (NASDAQ:GILD) (Foster City, California) is investing $150 million to construct a drug development laboratory targeting cardiovascular, hepatitis B&C and HIV/AIDS therapeutics at its growing Foster City campus.
Further up the coast in Moses Lake, Washington, AstaReal Technologies is considering construction of a $30 million algae-based anti-inflammatory active pharmaceutical ingredients (APIs) contract manufacturing (CMO) plant expansion. Plans call for the existing 59,000 square-foot plant to be expanded by 50,000 square feet.
In Portland, Oregon, the Oregon Health and Science University is nearing launch of construction on the $160 million Knight Cancer Research Institute. Sited on the school's South Waterfront campus, the project will add an eight-story 330,000 square-foot building devoted to the development and discovery of new cancer-related therapeutics and treatment options.
As always, there remains the possibility that some of the projects will be delayed, put on hold or canceled. The individual status of each of the 23 projects will be carefully monitored and updated for changes. At the same time, new projects are being added as they are uncovered.
Listed below are the pharma-bio projects which are expected to kick of in second-quarter 2016.
| Project ID | Project TIV | Project Name |
|---|---|---|
| 300216621 | $225,000,000.00 | RESEARCH & DEVELOPMENT LABORATORY BUILDING ADDITION |
| 300106678 | $180,000,000.00 | BASIC SCIENCE RESEARCH CTR & ANIMAL RESEARCH VIVARIUM (VMU) ADD |
| 300213091 | $160,000,000.00 | SCHNITZER CHH SOUTH KNIGHT CANCER RESEARCH INSTITUTE ADD |
| 300016992 | $153,000,000.00 | MED SCHOOL RESEARCH EXPANSION PHASE 3.2 |
| 300270537 | $150,000,000.00 | CARDIOVASCULAR, HEPATITIS B & C, HIV/AIDS R&D LABORATORY ADDITION |
| 300239415 | $135,000,000.00 | BIOMEDICAL R&D CAMPUS NMR & LABORATORY BUILDINGS ADDITION |
| 300211228 | $125,000,000.00 | BIOTHERAPEUTICS FILL & FINISH PLANT PRODUCTION SUITE ADDITION |
| 6005431 | $112,000,000.00 | BIOLOGICAL AND PHYSICAL SCIENCES BUILDING ADDITION |
| 300203957 | $80,000,000.00 | GRASSROOT SPECULATIVE R&D LABORATORY |
| 300266532 | $80,000,000.00 | INTEGRATIVE GENOMICS LABORATORY ADDITION |
| 300067197 | $60,000,000.00 | CENTER FOR NOVEL THERAPEUTICS (CNT) ADDITION |
| 300155481 | $50,000,000.00 | GRASSROOT HEALTH SCIENCES CAMPUS PHARMACY BUILDING |
| 300266373 | $35,000,000.00 | ONCOLOGY DRUG DISCOVERY LABORATORY ADDITION |
| 300236692 | $30,000,000.00 | ALGAE-BASED ANTI-INFLAMMATORY (ASTAXANTHIN) API CMO PLANT ADDITION |
| 300244273 | $25,000,000.00 | ANTI DRUG CONJUGATES (ADCS)+HIGHLY POTENT ACTIVE PLANT RENO/RETROFIT |
| 300266375 | $20,000,000.00 | NEURODEGENERATIVE R&D LABORATORY |
| 300116555 | $15,000,000.00 | RESEARCH AGRICULTURAL ANIMAL HEALTH RESEARCH BLDG ADDITION |
| 300247790 | $7,000,000.00 | PROTEINS, VACCINES, GENE/CELL THERAPY SINGLE-USE CMO PLANT ADDITION |
| 300212186 | $1,000,000.00 | SPECIALTY BIO-GUMS CMO PLANT 2Q16 MAINTENANCE SHUTDOWN |
| 300215055 | $1,000,000.00 | MAMMALIAN CELL CULTURE CLINICAL-SCALE CMO 2016 MAINTENANCE PROGRAM |
| 300216398 | $1,000,000.00 | DENTAL COMPOUNDS PLANT 2016 MAINTENANCE PROGRAM |
| 300209945 | $1,000,000.00 | ASEPTIC PARENTERALS CMO PLANT 2Q16 MAINTENANCE SHUTDOWN |
| 300221294 | $1,000,000.00 | OTC PERSONAL CARE PRODUCTS CMO 2016 MAINTENANCE PROGRAM |
