Life Sciences 2020: The Future is Here

MARKET SUMMARY

FAST LAB STATS

• North Carolina is home to one of the most dynamic life sciences clusters in the U.S. with more than 600 life sciences companies located in the state. Approximately 450 or 75% of those companies are located in the Research Triangle Park (RTP). Centrally located between Raleigh and Durham, RTP is the largest research park in North America and home to industry giants such as GlaxoSmithKline, IQVIA, PPD and Biogen. • RTP includes prominent Fortune 100 multi-national corporations, university spin-outs and start-ups in its sprawling 7,000-acre campus. The Research Triangle Park Foundation describes RTP as a “global epicenter of technological innovation”, boasting a range of R&D companies and research institutions. • In 2018, Forbes ranked North Carolina No. 1 in its Best States for Business report for the second consecutive year. Key factors included its extremely low cost for doing business, minimal regulations, impressive growth statistics and high quality of life. • Most notably, the Triangle is home to three separate research universities (Duke University, University of North Carolina at Chapel Hill and North Carolina State University) which produce more than 53,000 graduates annually. Life sciences companies can recruit top talent from the area’s abundant pipeline of graduates. • The supply of new lab space has been stagnant over the last 10 years, but the outlook remains positive due to rapidly increasing demand and market conditions tightening.

10 MSF MARKET SQUARE FOOTAGE VARY DEPENDING ON LEASE TERMS $15-$35 6.9K TOTAL EMPLOYEES +84% TOTAL EMPLOYEES SINCE 2010 10.7% VACANCY AVERAGE ASKING RENT (PER SF); WILL

(RALEIGH/DURHAM)

TOP LIFE SCIENCES COMPANIES

LIFE SCIENCES TALENT POOL: 9,626

Number of Persons 5,500 6,000 6,500 7,000 7,500 8,000 8,500 9,000 9,500 10,000

COMPANY

TYPE

RESEARCH TRIANGLE, NC GlaxoSmithKline R&D IQVIA Big Pharma RTI International CRO

Grifols

Big Pharma Big Pharma

PPD

Average Annual Growth Rate 2001-2018: 3.0%

LabCorp

CRO R&D CRO

Biogen

Syneos Health Novo Nordisk Pharmaceutical

Big Pharma

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

Source: EMSI

BASF

R&D

TOP THREE NIH-FUNDED INSTITUTIONS

UNIVERSITY OF NORTH CAROLINA, CHAPEL HILL $2.1B

DUKE UNIVERSITY $2.0B

RESEARCH TRIANGLE INSTITUTE $160M

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