 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
Print article
The appliance of science
Prime Minister Tony Blair said last year that bioscience and biotechnology would be of fundamental importance to the future economy of the UK. His comments recognized the strengths that the bioscience sector has in terms of science, business and people. Looking at the position of the UK bioscience sector in Europe, recent deals and the financial and regulatory environment in the UK, the reasons for its success become clear.
The UK remains Europe’s most productive bioscience sector, with 145 biopharmaceutical medicines on the market and over 270 potential medicines in development. Globally, it is second only to the US. In 2004, there were approximately 455 dedicated biotechnology businesses in the UK. The UK bioscience sector has more employees, a greater R&D spend and greater revenues than those in other European countries.
 |
In human health, the UK has particular expertise in areas including neurosciences, oncology, infectious diseases, vaccines, monoclonal antibodies and stem cell technology. The UK is also strong in bioprocessing, with more than 50 biopharmaceutical companies developing pre-clinical, clinical and licensed products. There have been a number of developments in the past year that have reinforced the strengths of the UK as a leader in bioscience and as a breeding ground of globally-competitive companies. As a result, the UK continues to be an attractive location for investment and its companies continue to be attractive partners for the pharmaceutical sector.
The past year saw a marked increase in international companies choosing to invest in facilities in the UK. Among the larger investments are:
- Japanese biotechnology company Eisai is building its European headquarters in Hatfield, near London. This £75m facility is due to open in 2008 and will create 500 jobs in R&D, manufacturing and marketing in addition to Eisai’s current R&D facility in London.
- Amgen, based in Thousand Oaks, California, is investing £100m over the next 10 years in a new development site in Uxbridge, near London, which will create 300 new jobs. Dr Jeremy Haigh, Amgen’s European Head of R&D, says: “This expansion will almost double our current UK-based R&D capacity. The UK has the scientific talent and capabilities which Amgen needs.”
The wave of collaborations, mergers and acquisitions that has swept through the UK bioscience sector in the past few years continued in 2006. There were a number of deals that reveal a clear picture of the on-going success of the bioscience industry in the UK. In these deals, major pharmaceutical players recognized the value and made significant investments to gain access to unique technologies developed by UK companies. Some of the key deals include:
- Novartis acquired NeuTec Pharma, which specializes in developing antibody treatments for hospital-acquired infections, for £305m.
- AstraZeneca completed a £567m takeover of Cambridge Antibody Technology and established CAT as its antibody discovery arm, which will now double in size, taking on nearly 300 new employees, over the next two years.
- Pfizer agreed to acquire vaccine manufacturer PowderMed for an undisclosed sum.
- GlaxoSmithKline expanded its biopharmaceuticals portfolio with the £230m acquisition of antibody development company Domantis.
In addition to these acquisitions, there have been some significant licensing deals and collaborations between US and UK-based companies. For example, ProStrakan agreed a licensing deal with Amgen, potentially worth up to $150m, to develop and commercialize compounds for renal disease; and PIramed has a research collaboration, which could be worth up to $230m, with Genentech for a new class of cancer drugs that target PI 3-kinase, a key intracellular enzyme involved in a broad range of cancers.
It has not just been companies that have attracted attention; academic researchers at UK universities have also attracted partners. In April, Wyeth joined with Scottish Enterprise to form a Translational Medicine Research Collaboration at the universities of Edinburgh, Glasgow, Dundee and Aberdeen. In August, Geron announced it would be collaborating with the University of Edinburgh on developing three cell types from human embryonic stem cells. Speaking at the time of the agreement, David Greenwood, Geron’s executive vice president and chief financial officer, specifically recognized that the UK offers scientific talent, a receptive environment for its human embryonic stem cell research and the availability of funding.
In addition to investment by companies, there has also been government funding to help build the infrastructure for bioscience. For example, in January, the Scottish Executive said it would spend £24m to build a world-class centre for stem cell research, development and manufacture in Edinburgh by 2010. The £59m centre is being developed by the University of Edinburgh and will be led by Professor Ian Wilmut, creator of Dolly.
The UK offers more than just science to attract investment. It is also recognized worldwide because of its favorable financial, legal and regulatory environment. Reflecting the attraction of London’s financial markets, recently a number of US and other international biotech companies have chosen to list on London’s Alternative Investment Market to gain access to capital without the reporting burdens of listing in the US.
The UK government has also helped to ensure that the regulatory environment in the UK encourages companies to carry out cutting-edge research in bioscience. One of the reasons the UK leads the world in stem cell research is because of the regulatory environment overseen by the forward-looking Human Fertilisation and Embryology Authority. Nowhere in the world has put more effort into combating animal rights extremism in order to maintain a supportive environment for bioscience than the UK. Significant progress has been made and the number of incidents provoked by animal rights extremists declined markedly during 2006, demonstrating the impact of new and existing legislation.
The UK has the science, people, financial and institutional support and regulatory environment to make it the leading European location for bioscience. Strengthening the interactions between US and UK bioscience companies in future will play a key role in helping to develop innovative medicines for patients.
For more information, contact:
Aisling Burnand
Chief Executive, BioIndustry Association
Tel: +44 (0) 20 7565 7190
E-mail: admin@bioindustry.org
Website: www.bioindustry.org
Top |
 |
 |
 |
 |
All pages are copyright © of Roxby Media Ltd. British American Business is a Roxby Media publication - Disclaimer