H1 2024 Life Sciences Update Market Summaries

Italy: Milan

View H1 2024 Life Sciences Update

View All Markets

Market Summary

Public & Private Funding (2023/24)

190 K Total Life Sciences Employment (including pharma, biotech and medical device sectors) Almost 50% of Italian Life Sciences companies are located in Lombardy Region Fast Lab Stats

• The life sciences sector occupies a prominent position in Italy’s economy. The pharmaceutical sector ranks among the largest in Europe, with a total turnover aligned with Germany and representing the world's highest ratio of scientific publications and researchers. However, compared with other peers, the Italian life sciences sector has not yet filled the gap in terms of R&D annual investment, despite recording a 60% increase between 2016 and 2022, and reaching 2.4 billion euros. • Milan is the leading life sciences research and university hub in Italy. The Lombardy region, together with northern Italy and Rome, hosts a high number of life sciences companies, accounting for 46% of life sciences companies in Italy. The Lombardy region is also home to 35% of Italian pharma companies, employing nearly 29,000 people, which represents 43% of the total workforce in Italy’s pharma sector. • From a real estate perspective, the Italian life sciences sector is still early in the growth curve compared to other international markets. It is difficult to find clear dynamics of aggregation between corporate facilities and research, education and training clusters. • Existing life sciences clusters are located within tech hubs, with the ownership of those facilities usually in the hands of public entities rather than private investors. • There are signs of growing interest in the asset class, with some important developments and projects, including MIND in Milan and the City of Health in nearby Sesto San Giovanni. These emerging urban districts will incorporate space not just dedicated to companies, but also to research institutions and education in the life sciences field.

Company

Deal Type

Completed

Company Type

€ Raised (MM)

BetaGlue Therapeutics

Later Stage VC

Jun 2024

5th Round

€ 8.7

Cloud Pathology

Equity Crowdfunding

Feb 2024

€ 0.0

AAVantgarde Bio

VC VC

Jun 2023

Early Stage

€ 61.0

Alia Therapeutics

Apr 2023

Seed Round

€ 4.5

VC

Repron therapeutics

Jun 2023

Seed Round

€ 2.0

VC

CareGlance

Jul 2023

Early Stage

€ 0.5

VC

Specto Photonics

Mar 2023

Early Stage

€ 0.2

Representative Investment Sale Transactions (2022 – Q2 2024)

Address

Type

Volume (€m)

GLA (sqm)

Date Buyer

Mind (The Village)

Office/Labs

Confidential

Ca. 10,000 Q3 2022 Ream Sgr Fondo Cervino Comparto A JV with Lendlease

Representative Life Sciences Companies

Life Sciences Labor: Italy - Pharmaceutical Workforce

68,500

Company

Type

60,000 61,000 62,000 63,000 64,000 65,000 66,000 67,000 68,000 69,000

Recordati

Central HQ

67,000

66,400

Bracco

Central HQ

65,800 65,800

Representative Lease Transactions (2023 – Q2 2024)

Dompè

Central HQ

64,500

Company

Address

GLA (sqm) Pre-Lease/ Lease

Type

Date

Landlord

Italfarmaco

Central HQ

Straumann

Bodio Center

Ca. 1,200 New Lease ca. 1,300 Pre-Lease ca. 2,200 New Lease ca. 1,400 New Lease ca. 3,500 New Lease

Office Office Office Office Office

Q1 2024 Q1 2024 Q1 2024 Q4 2023 Q1 2023

n.a. n.a. n.a. n.a. n.a.

Sanofi Spa

Italian HQ

Kyowa Kyrin MTD Group

Park West

Astrazeneca

Italian HQ

Via B. Crespi 57

PFIZER

Italian HQ

DOC GENERICI

Via Bernina 7

2017 2018 2019 2020 2021

2022

Novartis Italian HQ Boehringer Ingelheim Italian HQ BAYER Italian HQ

IMCD

Via Carlo Darwin 20

Life Sciences Sector Overview: Italian Biotech Companies

660 680 700 720 740 760 780 800 820 840

823

790

783

777

Bio Degree-Awarding Institutions, Metro Area • Università Statale di Milano • IRCCS San Raffaele Hospital / University • IRCCS Galeazzi (MIND) • Istituto Neurologico Carlo Besta • Istituto Nazionale Tumori • Humanitas • Human Technopole (MIND)

749

739

722

Contributor Stefano Nicolini stefano.nicolini@cushwake.com

2016 2017 2018 2019 2020 2021 2022

Sources: Cushman & Wakefield Research, Pitchbook, Icribis, The European House Ambrosetti, EFPIA

CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2024 SEPTEMBER