Oxfordshire: Bidwells highlights biopharma cluster

Bidwells property consultancy firm has just published its first Oxford Biopharma cluster report. This is a ground-breaking piece of research undertaken by Jeanette Walker of letscellit.com and based on more than 15,000 data points, which provides a comprehensive highlighting of a significant cluster of companies located within a 20-mile radius of the Carfax Tower which are engaged in the therapeutic supply chain, ranging across disease prevention, prediction, diagnosis, treatment and monitoring.

Walker, director of letscellit.com and author of the report, explained: “For this study we identified the companies that fell within the scope of ‘biopharma’ and then collated data about their age, nationality, primary focus, activity and location. The focus is on the nature and extent of the biopharma cluster and does not cover company financing rounds or deals.”

In terms of activity, 39% of the companies are engaged in R&D; 10% in process development, production & manufacturing; 9% in technical consulting; 18% in scientific services/products; 29% in distribution, sales and marketing.

Recognising the significant importance of this sector to Oxfordshire’s economy, Bidwells, which already works with many of the companies, universities and science parks operating in Oxfordshire, commissioned the research to gain a better understanding of the cluster’s strengths and weaknesses.  

Some of the strengths are that the University of Oxford ranks first in the world in life sciences, clinical, pre-clinical & health; that the 244 companies involved in this sector include Immunocore which in 2015 secured the largest European life-sciences fundraising total ever at $320 million; that two companies have been listed in the prestigious “FierceBiotech’s Fiercest 15” in the past five years; that there are nine publically-traded companies with a combined market cap of $1.83 billion; and that two of the world’s top-10 pharmaceutical companies, J&J and Sanofi/Genzyme, have a presence in the cluster.

Some distinguishing features are that 16% of the companies are University of Oxford spinouts; that 85% of the companies employ fewer than 50 people and 97% employ 250 or fewer; and that 57% of the companies are based on a park, the top three locations being Milton Park, Oxford Science Park and Harwell Campus.

A potential weakness, however, lies in property limitations. As Walker commented: “The analysis has given Bidwells and other interested stakeholders a solid basis from which to explore how to address some of the challenges which range from the current shortage of suitable properties to issues around age and diversity.”

David Williams, partner at Bidwells, Oxford said: “In addition to providing data about the cluster, the report revealed the trends driving demand for property in the biopharma sector, and highlighted key issues that could affect the growth of the cluster and its global competitiveness in the future. 

“The research has given us valuable insights into the future demand for both incubation and grow-on space for mid-and-mature-stage companies, as well as the typical mix between laboratories, med-tech and office space, which is all necessary to guide new development. With burgeoning demand and limited supply, R&D and incubator real estate has become an increasingly rare and expensive commodity.”

Williams also highlighted an important consideration: “The fact that more than half of the biopharma companies are based on a science, technology or research park, illustrates the value of the open innovation and interaction between like-minded organisations.”

The Oxford cluster report was undertaken in parallel with the Cambridge Biopharma Cluster report, copies of each and the cluster maps can be viewed at: http://www.bidwells.co.uk/research/cambridge-and-oxford-biopharma-clusters