The life sciences industry is driven by increased demand for healthcare. Although healthcare is primarily organized within national geographies, the market trends are truly global. Companies must address issues like aging populations, higher expectations for better access and higher quality healthcare, new and often chronic lifestyle-driven diseases, new infectious diseases and spiraling costs.
Over the next decade, all parts of the healthcare and life sciences ecosystem will need to change, from revenue based on volume to revenue based on value.
Since 2004, biotechnology and health sciences have been the Luxembourg government’s strategy to diversify Luxembourg’s economy and offering its population an innovative healthcare system. Substantial public investment and a supportive business environment have made Luxembourg an attractive destination for research and innovation projects.
The life sciences sector has been supported with the establishment in 2008 of a strategy partnership between the national public research centers and three world-renowned US research institutes that has resulted in the founding of the Integrated BioBank of Luxembourg (IBBL), the establishment of the Luxembourg Center for Systems Biomedicine (LCSB) at the University of Luxembourg, and the launch of a lung cancer project located with CRP-Santé.
In 2008, the Luxembourg BioHealth Cluster was formed by its members whose activities are related to Health Sciences and Technologies, to help attain scientific excellence in molecular diagnostics, the cornerstone of personalized medicine, and to enhance the Grand Duchy’s reputation as a recognized and attractive environment for biomedical research, development, innovation and business.
To address one of the big challenges especially for investors on the falling return on investment on R&D expenditure, Luxembourg is committed to an environment that supports intellectual property creation and development. The Grand Duchy's policies and programs are aligned with all major IP treaties and conventions to provide a safe, secure IP environment built on compliance with European Union law and international agreements.
Among Luxembourg's unique and specific benefits for IP creation and management are an 80 percent tax exemption on income generated from the commercial use or capital gains from the sale of IP, along with complete exemptions of IP from net worth taxes. Qualifying property includes software copyrights, patents, trademarks, models, designs, and domain names.
IP development is backed by the National Research Centers and the University of Luxembourg, as well as by government-supported business incubators and R&D incentives.
These policies and initiatives make Luxembourg the top choice for developing, protecting, and managing IP and for optimizing the financial benefits thereof, enabling companies and organizations to position IP as a cornerstone of their innovative economic models.
Demographics, fiscal restraint, new technologies and consumer expectations are creating significant challenges and opportunities. In these unprecedented times, healthcare leaders require insight and guidance from an adviser you can trust. That is why leading organizations turn to KPMG.
With deep industry experience, insight and technical support, KPMG firms are among the leaders in delivering a broad range of audit, tax and advisory services to meet the unique needs of healthcare and life sciences policy-makers, providers and payers. Our team is dedicated to assisting businesses of all sizes from biotechnology start-ups to large multinational pharmaceutical companies. Our service offerings include:
- Business process modeling/review
- IT infrastructure/review
- Financing / Debt advisory / Cost control
- Tax incentives, grants and subsidies
- Tax compliance services
- Advice on tax efficient holding, financing and IP structures
- Mergers, acquisitions and disposals
- Valuation services
- Accounting expertise
- Independent financial statement audits
"It is neither the strongest of the species that survive, nor the most intelligent, but the one most responsive to change."