Saturday, 4 January 2025

Global FDI in the Biotechnology Industry

 1. Between 2019 and 2023, the biotechnology sector was the twenty-fifth largest FDI sector in terms of the number of greenfield investments. The biotechnology sector accounts for 0.6% of global greenfield FDI projects.

2. Greenfield foreign direct investment is when a company invests abroad to establish a new physical presence or expand an existing operation. Greenfield investments create jobs and/or involve a capital investment into the foreign location. Other forms of FDI, such as mergers and acquisitions, are not included as part of this definition.

3. Combined, the top ten destination countries account for 69.4% of total biotechnology FDI projects.

4. The leading destination country for biotechnology FDI is the US. Germany, UK and France are also popular biotechnology investment hubs.

5. According to GlobalData’s FDI Projects database, Japan-based companies were the leading source of greenfield biotechnology investments into the US.

6. With respect to outbound FDI, the US was the leading biotechnology source market. US-based companies held a 29.6% share of total outbound biotechnology FDI projects. Japan, China, Germany and the UK are also top source markets for biotechnology FDI.


MOST ACTIVE FDI COMPANIES IN THE BIOTECHNOLOGY INDUSTRY
1. Fujifilm Holdings has been the most active biotechnology greenfield investor between Q1 2019 and Q2 2024, according to GlobalData’s FDI Projects Database. The parent company has been actively investing through several of its subsidiaries/company divisions.

2. Greenfield foreign direct investment is when a company invests abroad to establish a new physical presence or expand an existing operation. Greenfield investments create jobs and/or involve a capital investment into the foreign location. Other forms of FDI, such as mergers and acquisitions, are not included as part of this definition.

3. The majority of Fujifilm Holdings investments were in the genomics subsector. In fact, 18.3% of its total foreign investments were in this subsector. It also created projects across a further 16 subsectors.

4. By business function, most (46.7%) of Fujifilm Holdings projects were related to manufacturing. R&D and Healthcare provision were the next most popular operations undertaken by Fujifilm Holdings.

5. The company has been active across six world regions, mainly focused on North America which received 35% of the company’s greenfield investments between Q1 2019 and Q2 2024. Its top three destination countries (by number of greenfield FDI projects) were the US, the UK and India. Combined these three countries account for 183.3% of its total number of biotechnology investments.

6. Fujifilm Holdings created more FDI projects in 2021 compared to any other year between Q1 2019 and Q2 2024.

7. Other leading FDI project generators in the biotechnology industry include Danaher, Beijing BGI-GBI Biotech, and F. Hoffmann-La Roche.

8. The US is the leading source market for outbound biotechnology greenfield FDI projects. The country accounts for 29% of total outbound biotechnology investment projects. There have been 101 unique parent companies from the US that have announced biotechnology FDI projects between between Q1 2019 and Q2 2024.


Source:
https://www.investmentmonitor.ai/data-insights/the-role-of-fdi-in-the-biotechnology-industry/?utm_source=lgp5-fdi-sector&utm_medium=7-112674&utm_campaign=&cf-view

https://www.investmentmonitor.ai/data-insights/active-fdi-companies-biotechnology-industry/?cf-view&cf-click&cf-minimized&cf-view