Biotechnology Labour Market Trends Report Dec 23

Latest life sciences job insights and trends for the biotechnology sector.

Biotechnology UK Life Sciences Labour Market Trends

December 2023

INTRODUCTION

The life sciences sector in the UK has established itself as a prominent player, particularly in the field of biotechnology. The thriving biotech sector contributes to 30% of the country’s overall life sciences industry. Among the biotech companies, half of them primarily focus on research and development services, while over a third are dedicated to therapeutics and diagnostics. The remaining 15% encompass various other biotech sectors like environmental, animal health, and agribio, which do not specifically engage in medical research for human use.

While 2021 was a remarkable year for private equity fundraising in the life science sector, 2022 experienced a significant decline in venture investments, amounting to less than

half of the previous year’s total. However, there is hope for recovery, as the UK’s biotechnology landscape has witnessed an impressive surge in funding in the third quarter of 2023. According to Biotech Finance, the sector received a robust £563 million ($700 million) in venture capital and public financings, marking a staggering 48% increase from the previous quarter. This surge in funding sets a formidable pace for the industry after a challenging 2023. When looking at open vacancies, the South of England and Greater London account for 74% of all UK biotech science vacancies. However, there was a 46% decrease in total science vacancies in these areas compared to 2022. In comparison, the EU 27 saw a 39% decrease across its major hubs. Cambridge, on the other hand, maintains its position as the leading biotech city in Europe for the third consecutive year. Notably, there has been a formidable surge in vacancy activity in Utrecht, with a 68% increase in new jobs within the biotech sector. In terms of investment figures, the UK saw a decline in 2022, with investments amounting to USD 1,920 million compared to USD 4,827 million in 2021. Despite this drop, equity financing for biotech companies in the UK remains consistent with pre-pandemic levels, indicating stability in the industry. The IPO market also experienced a notable decrease, with only four UK life science companies listed on a global stock exchange in 2022, compared to 11 companies in 2021. However, respected biotech analysts predict a potential boom in the sector in 2024, driven by falling interest rates and a stagnant 2023. They anticipate an increase in M&A activity, with large pharmaceutical companies pursuing smaller biotech firms. Neurosciences, which has grown at 9% annually in recent years, and early-stage assets within oncology and the obesity/weight loss space are expected to be particularly attractive. Looking towards the future, the UK government’s Spring Budget for 2023 brings optimism for the growth of the country’s life sciences industry. The budget introduces R&D tax incentives and other measures aimed at attracting new investments into the UK market. This indicates a positive trajectory for the industry, with the potential for further expansion and advancements in the field of life sciences within the UK.

Yvette Cleland - CEO | Cpl UK

CONTENTS Overview Top Cities

Page 03 Page 04 Page 05 Page 06 Page 07

Skills in Demand Top Organizations About Cpl Life Sciences | Vacancysoft

Overview As we approach the end of 2023, the UK and European biotechnology sector reflects a landscape of transformation and realignment. The industry’s employment patterns have shifted against a backdrop of economic downturn and post-pandemic adjustments. While the market has experienced an overall decline in scientific vacancies, it’s also seen pockets of robust growth and consolidation. Scientific vacancies within the biotech sector have been on a downward trend since they peaked in March 2022. January and March were the top two months for vacancies in 2022 and 2023, registering 131 and 123 vacancies in 2023, marking a decrease of 34% and 51% from the previous year. The first quarter saw the highest concentration of job postings, tallying 351 vacancies. Despite this, the figure marks a sharp 45.9% fall from the same period in 2022, highlighting a notable contraction in the sector’s recruitment activity. Professional non-scientific vacancies mirrored the scientific ones in monthly distribution, with March 2022 being the peak before a decline leading into November 2023. March 2023 had 138 non-scientific roles open, down 27% from the same month in 2022. The first quarter was again the peak with 375 openings, yet it experienced a 21.2% decrease from 2022, with subsequent quarters, Q2 and Q3, also seeing similar declines of 36.8% and 36.3%, respectively. Looking at scientific vacancies through a broad regional lens presents a slightly different picture. The South experienced a notable 53.4% decline, while Greater London’s vacancies reduced by 41.1%. The North, however, remained relatively stable, with only a 3.4% decrease. The Northwest England region notably bucked the trend with a slight year-on-year increase of 0.2%, enhancing its market share to 13.8%, closely tailing Greater London at 14.6%. A closer look at regional data reveals that the East of England, Southeast England, and Greater London collectively held a substantial 74.5% share of open roles, all saw significant decreases of 55.7%, 50.0%, and 41.1%, respectively. These are substantial shifts, considering these regions are traditional strongholds in the biotech sector.

03

Monthly Totals

Biotechnology Sector, Scientific Vacancies vs Non-Scientific Vacancies, 2021-2023, UK

300

200

100

Scientific Vac.

Non-SC Vac.

Fig. 01 Source: Vacancysoft Analytics

*- Forecast 2023

Biotechnology Sector, Scientific Vacancies, 2021-2023 *Est, UK Regional Breakdown

South

500

1,000

1,500

North

Greater London

Midlands

Scotland

Wales

Northern Ireland

100

200

300

400

500

2023*

2021

2022

Source: Vacancysoft Analytics

Fig. 02

*- Forecast 2023

04

Top Cities

04

Annual Totals Biotechnology Sector, Scientific vacancies, UK vs EU, 2021-2023 *Est

Top Cities Biotechnology Sector, Scientific vacancies, UK vs EU, 2021-2023 *Est

5,000

Cambridge

4,000

Dublin

Utrecht

3,000

Copenhagen

2,000

London

1,000

Bergisch Gladbach

2021

2022

2023*

200

400

600

800

Scientific UK

Scientific EU

2023*

2021

2022

Source: Vacancysoft Analytics

Source: Vacancysoft Analytics

*- Forecast 2023

*- Forecast 2023

Fig. 03

Fig. 04

From a country-level perspective, the UK’s biotech sector has encountered a significant reduction in scientific vacancies, with a 46.8% decrease compared to 2022. This marks a continuation of the declining trend, following a 9.7% drop in the 2021/22 period. By November 2023, the number of open scientific roles barely crossed 1000, with 1069 vacancies recorded. While the UK’s biotech sector struggles, the EU seems more resilient, experiencing a smaller decline of 39.1% in 2023 despite enjoying a robust 15% increase in the previous year. This differential decline further widens the gap between the UK and the EU, with the UK’s share of scientific roles in the biotech sector decreasing to 28.7% from 31.5% in 2022. The UK’s downward trajectory in market share has been consistent since 2020/21. The EU, on the other hand, has increased its share to 71.3%, indicating a stronger hold on the biotech sector’s scientific vacancies. These figures highlight the UK’s waning dominance in the European biotech landscape, which could be attributed to various factors, including post-Brexit challenges, funding disparities, and strategic differences in responding to global biotech trends.

The UK may trail behind the EU in total market share for scientific vacancies in biotechnology. Still, it stands out that Cambridge is maintaining its position as the leading city for the third consecutive year. However, Cambridge has not been spared by the sector’s downturn, seeing an almost 60% reduction in vacancies from the previous year, reducing its market share from 12.4% in 2022 to 8.7% in 2023. On the European front, Utrecht shows a remarkable 68.4% surge in job openings, propelling it to third place with a 5.1% market share, following closely behind a relatively stable Dublin. This city-level data reveals a decline in overall job openings, yet certain EU regions exhibit growth, potentially challenging Cambridge’s dominance. Half of the top 10 cities are poised to improve their market share compared to 2022, reflecting a realignment in the biotech landscape that might signal regional growth and diversification in the EU despite the overall vacancy contraction.

05

05

Skills in Demand

Skills in Demand: Top Divisions Biotechnology Sector, Scientific vacancies, 2021-2023 *Est, UK

Skills in Demand: Top Divisions Biotechnology Sector, Scientific vacancies, 2021-2023 *Est, EU

R&D

R&D

Quality Assurance

Quality Assurance

Clinical

Clinical

Regulatory Affairs

Drug Manufacturing

Scientific Support

Medical Affairs & Medical Information

250

500

750

1,000

1,250

500

1,000

1,500

2,000

2023*

2023*

2021

2021

2022

2022

Source: Vacancysoft Analytics

Source: Vacancysoft Analytics

*- Forecast 2023

*- Forecast 2023

Fig. 05

Fig. 06

The UK biotech sector 2023 continues to underscore the critical importance of Research and Development (R&D), which retains the largest market share at 57.3%, despite a significant 47.4% decrease in vacancies from the previous year. This fall follows a modest 1.9% rise in 2022, a year that otherwise marked downturns across various skill sets. Regulatory Affairs experienced the most considerable decline, with a 50% drop in job openings, illustrating the impact of industry shifts on regulatory roles. Despite facing a 42.5% decrease in vacancies, Quality Assurance saw its market share grow to 13.9%, reflecting its sustained essential role within the sector. With an 8.2% market share, the Clinical division remains a consistent demand area despite a 45.8% drop in opportunities. Scientific Support witnessed the second-largest reduction at 48.5%, indicative of the broader trend affecting specialised roles within the industry. Overall, the sharp decline in job openings across all divisions suggests a period of recalibration for the UK’s biotech sector as it navigates the post-pandemic landscape and adjusts to new economic realities.

In the EU27, 2023 has been a year of change for skill demand within the biotechnology sector; R&D remains the predominant division despite a significant 42.4% year-on-year vacancy reduction, retaining a 33.0% share of the job market. This notable decrease follows a positive trend in 2022. The Drug Manufacturing and Medical Affairs & Medical Information divisions are unique to the EU27’s top demands, reflecting the region’s robust manufacturing sector. However, both divisions have experienced significant declines, with Drug Manufacturing witnessing a 41.1% drop in vacancies. This trend is a departure from the previous year’s 43.5% increase, suggesting a post-pandemic normalisation following an initial surge in demand. Quality Assurance, after a 16.1% increase in 2022, faced a downturn with a 39.7% decline in 2023. Conversely, the Clinical division, although seeing a reduction in roles, appears to be the least affected, with a more minor 12.5% year-on-year change and an increase in market share to 10.9%.

06

Top Organizations

05

Top 20 Organizations EU Scientific Vacancies

In 2023, notable strategic shifts among leading firms are reshaping the employment dynamics within the biotechnology industry. One such significant player, BioNTech, retains a considerable share of the market, contributing to 25% of the total vacancies within the top 20 companies. However, a noteworthy development is the 21.7% reduction in scientific vacancies within BioNTech. This adjustment is in tandem with the company’s revised revenue forecast, reflecting a response to decreased demand for its COVID-19 vaccine. Consequently, BioNTech is reallocating resources, particularly in its R&D budget, redirecting focus towards its promising oncology pipeline. Contrary to this trend, Genmab, headquartered in Denmark, is defying industry norms by witnessing a remarkable 40.3% surge in job openings. This surge not only enhances Genmab’s market presence but also positions it as a notable player in the evolving biotechnology landscape. Concurrently, companies like Amgen, Grifols, and PSC Biotech are expanding their market shares, each approaching a 10% share. These developments signify strategic growth initiatives and suggest a more assertive approach in talent acquisition. However, not all companies are experiencing positive trends. Miltenyi Biotec and Biogen find themselves under market pressures, encountering declines of 63.1% and 83.1%, respectively, in job openings. These contrasting trajectories underscore the diverse challenges faced by companies within the biotechnology sector. Amidst these nuanced shifts, the industry is undergoing a broader consolidation. The concentration of market share within the top five companies has increased to 57%, up significantly from 34% the previous year. This underscores a fiercely competitive marketplace where a handful of prominent players are seemingly gaining ground, potentially at the expense of smaller entities. The intricate interplay of these market forces highlights the evolving and complex nature of the biotech sector’s hiring landscape, which is reflective of the dynamic nature of the industry.

YoY%

Organization

HQ

2022 2023*

-21.7%

BioNTech

589

Germany

752

Genmab

40.3%

260

Denmark

185

Amgen

-11.0%

193

USA

217

-5.7%

Grifols

173

Spain

184

-36.8%

PSC Biotech

156

USA

247

Galapagos

27.9%

141

Belgium

110

CureVac

5.6%

131

Germany

124

-63.1%

Miltenyi Biotec

119

Germany

322

bioMerieux

-27.3%

98

France

135

BeiGene

25.1%

94

USA

75

AGC Biologics

-58.3%

91

USA

217

14.5%

70

Belgium

61

Argenx

-12.0%

Gyros Protein

55

Sweden

62

Cytiva

-52.8%

49

USA

104

Euroimmun

-12.7%

44

Germany

50

-31.0%

34

Germany

49

ProBioGen

-11.5%

33

Sweden

37

Olink

-34.5%

26

USA

40

Bio-Rad

-57.6%

23

Denmark

54

Novozymes

-83.1%

20

USA

116

Biogen

Source: Vacancysoft Analytics

Fig. 07

2023* - Estimation

Cpl Life Sciences have an international presence, recruiting across Europe, supplying Pharmaceutical, Biotechnology and Clinical Services industries with the talent they require for success.

Cpl UK is a group of specialist talent businesses which service the Science, Technology, Engineering, Mathematics (STEM), Professional Services and Healthcare sectors across the UK. Together we form the UK footprint for Cpl Resources Plc which is one of the largest staffing companies in Europe. As a group

we’ve been powering businesses by providing transformational talent solutions for over 30 years and have been listed on the London Stock Exchange since 1999.

Our mission is to be the UK’s best transformational talent partner across all our core markets and add meaningful value to lives of our clients, candidates and colleagues.

What we do: Our Service Capabilities across all European Countries include: ∙ Contingency permanent recruitment ∙ Contract recruitment – freelance and PAYE via Cpl UK

∙ Search and selection permanent recruitment ∙ Specialist ‘project-based’ interims via Cpl UK ∙ FSP outsourced teams across Europe ∙ European Salary Survey to determine the salary and benefits for each sector of the UK Life Science industry.

For more information or to speak to one of our team please contact us on +44118 959 4990 or email UK@CPL.COM

UK Office 33 Blagrave Street, Reading, Berkshire, RG1 1PW t | +44 (0)118 959 4990

EU Office 5 Old Bailey, London, EC4M 7BA t | +44 (0)207 822 1710

Vacancysoft is the UK’s leading provider of labour market data and analytics. We provide high-grade lead generation, client intelligence and market analysis solutions for Britain’s top recruitment industry firms and others.

Vacancysoft’s products helps firms to optimise their businesses. Established in 2006, we have thousands of clients worldwide, ranging from FTSE-listed businesses to industry specialists.

How we gather data The data contained within this report is gathered solely and specifically from the career centres of company websites, not job boards.

Before publication, job postings are de-duplicated and verified as unique. Every vacancy is assigned up to 20 data points through Vacancysoft’s proprietary algorithm, which is double-checked for validity by a data quality control team.

The data showcased here is available within the Vacancy Analytics platform, where users can create and customise their own reports. To find out more please contact a member of the team or email support@vacancysoft.com.

Vicarage House, 58-60 Kensington Church St, London, W8 4DB Tel: +44 (0) 20 7193 6850

vacancysoft.com

cpllifesciences.com

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