Portugal - an emerging life sciences location

The Portuguese pharmaceutical industry is not a major player on a pan-European scale. Valued in 2021 at around €3.8 billion (£3.3 billion), the domestic market accounts for 1.5 per cent of the European market, according to EFPIA.

R&D investment is low at €120 million (£103 million) and 0.3 per cent of European total. In terms of pharma employment, Portugal is ranked no.21 in Europe. The medtech industry is also modest in a European context. Portugal has one of the lowest employment rates (six persons per 10,000 inhabitants) in Europe and it is a net importer of medical devices with a negative trade balance of €837 million (£720 million).

Portugal has approximately 200 companies distributing medical products, primarily comprised of small or medium-sized companies employing, on average, 15 to 60 people.

Healthcare funding has been growing steadily

Nevertheless, over the past few years, Portugal's healthcare industry has undergone a remarkable transformation, shifting from antiquated practices to a heavy reliance on modern technology. This shift has facilitated the emergence and advancement of various new sectors within the industry, fostering significant growth across multiple market segments. Portugal now spends 10.6 per cent of its GDP on healthcare compared to 9.0 per cent five years ago and 7.7 per cent in 1998 (source: OECD).

Portugal as a future strategic location

Portugal holds promising potential as a future strategic location for several reasons. Its geographical position offers a gateway between Europe, Africa, and the Americas, making it a favourable hub for international trade and logistics. Moreover, Portugal boasts a skilled and multilingual workforce. An interesting facet is the educational inclination toward technical fields, as 40 per cent of tertiary education students are enrolled in sciences and health-related disciplines, according to AICEP Portugal Global. Portuguese universities, particularly the University of Porto and the University of Lisbon, serve as a foundational asset for various industries, including the pharmaceutical sector. Moreover, these universities boast schools of medicine that consistently produce high-quality medical professionals.

Affordable rents and wages

Portugal's cost competitiveness, particularly in real estate commercial space, remains noteworthy on an international scale. Rents in Portugal remain relatively affordable compared to other European cities and this affordability can be attractive for businesses looking to establish operations or expand their footprint. Additionally, it's important to note that Portugal maintains one of the lowest average wages in Europe, at around €26,000 (£22,300) and 25 per cent of their equivalent in Switzerland (source: Eurostat). This affordability factor can potentially attract businesses seeking cost-effective operational bases while navigating the broader European market.

Portugal's infrastructure includes seven international airports, with three located in mainland Portugal and four situated in the islands of Madeira and The Azores. Lisbon hosts the primary international airport, serving as a crucial hub for domestic and international travel.

Attracting foreign investment

The decision by Danish medical device company Coloplast to invest in a new manufacturing site in Portugal reflects the country's growing appeal for life sciences investments. Coloplast’s choice is based on several key factors. Firstly, Portugal offers a pool of qualified and well-trained labour at competitive salary levels. Additionally, the country's abundant supply of renewable electricity aligns with Coloplast's sustainability goals. Portugal's commitment to becoming carbon neutral by 2050 further supports Coloplast's ambition for sustainability. The investment, totalling around €100 million (£86 million), signifies Coloplast's confidence in Portugal's potential. The planned 30,000 sq m (323,000 sq ft) manufacturing site, slated to become operational in 2026, represents the company's largest site yet. The site will be located in Felgueiras, approximately 50 kilometers (32 miles) northeast of Porto.

Coloplast is not alone in seeing the attractions of Portugal. In October 2023, Zendal the Spanish biotech and pharma company launched its vaccine manufacturing plant in the town of Paredes de Coura in northern Portugal. Located on a site of more than 50,000 sq m (538,000 sq ft) and costing €25 million (£21 million), the facility will have a production capacity of up to 84 million vaccines per year. It is the first manufacturing plant for human health vaccines in Portugal. The facility houses technical areas, a production area, a warehouse, and offices, and initially employs around thirty professionals, some of whom have been previously trained at a Zendal plant in Spain. The Zendal group has a total of five production centres, three R&D  centres and a staff of 650 people.

Research institutions and leading life sciences companies

Portugal boasts several institutions pivotal in driving innovation within the life sciences cluster. Ten of them are profiled below. The country also has several noteworthy life sciences companies, six of which are profiled below. All 16 entities are displayed on the map above, which indicates a concentration of activity in Lisbon (five in total) and northern Portugal (11 in total).

Lisbon

1. Champalimaud Foundation: inaugurated in 2010, this state-of-the-art research facility significantly contributes to biomedical research activities in Portugal. Its cutting-edge infrastructure and research initiatives play a crucial role in advancing the understanding and treatment of various diseases within the country.
2. IMM - Instituto de Medicina Molecular: a non-profit association, it is specialised in human genome research with the aim of contributing to a better understanding of disease mechanisms and developing diagnostics tools and therapeutic approaches.
3. Hovione: specialises in the development and manufacture of APIs for the pharmaceutical industry. (Hovione has two manufacturing plants in Europe – the other one is in Ireland.)
4. IGC - Instituto Gulbenkian de Ciência: IGC focuses on genetic aspects of development, evolution, and complex diseases, with a focus on diverse experimental models including plants, yeast, flies, and mice.
5. ITQB - Instituto de Tecnologia Química e Biológica: this research institute under the auspices of Universidade Nova de Lisboa focuses on interdisciplinary research in chemistry, biology, and associated technologies.

Northern Portugal

6. AIBILI - Association for Innovation and Biomedical Research on Light and Image: this is a private non-profit organisation, founded in 1989, established to support technology transfer to industry. AIBILI is dedicated to help the development of new products for pharmaceutical and biotechnology companies, with special expertise in ophthalmology.
7. CNC - Center for Neuroscience and Cell Biology: it is a non-profit biomedical research centre at the University of Coimbra. CNC brings together scientists from the Faculties of Science and Technology, Medicine and Pharmacy and from the University Hospital.
8. Bluepharma: an FDA-certified company, it focuses on pharmaceutical drug production, generics, and significant investments in R&D.
9. BIOCANT Park: this is an applied research and development centre that provides innovative services of biotechnology and promotes the development of R&D in consortium with national and international companies for the creation of new products and services. As an example, ChemDiv the contract research organisation (CRO) opened a lab there in 2022 and the lab is now actively contributing to ChemDiv's discovery-stage programmes in oncology, neuroinflammation, and auto-inflammatory diseases.
10. Labesfal: part of Fresenius Kabi since 2005, it is a major contract manufacturer of hospital medicines. Its plant in Santiago de Besteiros supports internal and external customers as a complete service provider and can organise the entire supply chain from the API sourcing to the delivery of the packaged product. 
11. INEB - Instituto de Engenharia Biomédica: INEB's research groups specialise in areas such as tissue-material interface, bioceramics for bone treatment, biomedical imaging, and signal processing. INEB was founded in 1989 by six institutions, including the University of Porto (UPorto).
12. IPATIMUP - Institute of Molecular Pathology and Immunology: IPATIMUP's goals include research in oncobiology, training future professionals, disseminating scientific knowledge, and providing diagnostic expertise in pathology, oncobiology, and population genetics.
13. Bastos Viegas: the main Portuguese producer of non-active medical devices such as single-use instruments.

14. Fapomed: established in 1986 and dedicated to producing single-use medical devices, surgical gowns and other equipment.
15. International Iberian Nanotechnology Laboratory (INL): as the first fully international research organisation in Europe dedicated to nanoscience, nanomedicine, and nanotechnology, INL extends over 26,000 sq m (280,000 sq ft) of buildings and 7,500 sq m (81,000 sq ft) of labs. Its focus on cutting-edge nanotechnology research contributes significantly to advancing innovation in various sectors.
16. Bial: as Portugal's largest pharmaceutical company, its substantial investment in R&D has led to some worldwide patented molecules. They operate in various therapeutic areas and market their medications in over 50 countries.