EMEA 2026 Life Sciences Industry & Cluster Report

Strong public market performance shows renewed investor interest while easing equity funding and borrowing conditions. NYSE Arca Pharmaceutical has registered a more than 20% year-on-year increase. 

Facing a significant patent cliff, pharmaceutical leaders are aggressively replenishing drug pipelines. The top 10 companies deployed $125 billion in Research and Development (R&D) during 2025—averaging 20.1% R&D on revenue intensity—while innovation centers shift towards China's expanding candidate pool.

European life sciences venture capital rebounded to $14.6 billion in 2025, approaching pandemic highs with 7% growth marking the second consecutive yearly increase. However, capital migration toward later-stage deals and AI-driven drug discovery is disrupting traditional venture-to-laboratory real estate correlations.

Laboratory space remains a niche asset class with concentrated demand. Beyond owner-occupied developments, few European markets generate over 15,000 sqm annual take-up. Yet AI integration is blurring boundaries between life sciences and tech sectors, creating compelling cross-industry occupancy opportunities and reshaping facility requirements.