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Australasian Biotechnology, Vol. 11 No. 6, 2001, pp. 32-34 BIOTECH IN THE UK BIOTECHNOLOGY: A UK SNAPSHOT OF SUCCESS Code Number: au01073 The UK is the driving force in Europe in the development of the burgeoning biotechnology sector. One fifth of all Europe’s biotechnology companies are located in Britain, which also has the second largest number of biotechnology start-ups in the world. The strength of the UK science base, especially in the life sciences, has spurred this success resulting in the largest cluster of biotechnology companies in Europe. The UK biotechnology market and related industries are currently estimated at US$13 billion, with almost 300 dedicated biotechnology companies and over 450 companies involved in bio-related activities. In addition to the long history of research and ground breaking scientific discovery, the position of London as a financial centre has been a decisive advantage to UK-based biotechnology companies in need of patient capital and excellent financial and legal support services. The UK’s highly successful pharmaceutical and health-care industry is the single largest user of modern biotechnology and the world’s second largest exporter of medicines. Investment in R&D by UK-based pharmaceutical companies was over US$2 billion in 2000. The industry has discovered and developed more leading medicines than any other country apart from the United States, including six of the world’s current top twenty-five bestselling drugs. The UK government is determined that the country should maintain its leading position in the European biotechnology scene whilst ensuring that products and processes created by the industry are carefully regulated to ensure that they are safe and their impact on the environment and on human and animal health are assessed. Raising Finance in the UK The UK has an active investment community and is Europe’s largest venture capital sector. In 1999, UK funds raised over US$564 million for investment in biotechnology and medical-related sectors. This represents an increase of 48% between 1998 and 1999. The UK venture capital industry invests about the same as the USA, relative to GDP, in early-stage companies. According to a survey by Ernst & Young, UK biotechnology firms won 39% of the venture capital money put into European biotechnology from January to June 2001. Further information on venture capitalists and business angel networks specialising in biotechnology may be obtained from the comprehensive online member directories of the UK Bioindustry Association (www.bioindustry.org) and the British Venture Capital Association (www.bvca.co.uk). Despite the fact that Initial Public Offerings (IPOs) in Europe have temporarily decreased due to global uncertainty over the past year, more than half of those companies which have made it to market have been British. Compared with the rest of the hi-tech market, biotech has fared relatively well, at least in the UK. Ernst & Young attributes this largely to the fact that more products in the UK are nearing the end of the development pipeline than elsewhere. The total market capitalisation of UK-listed biotechnology companies stands at US$7 billion. In November 2001, on the second anniversary of techMARK™, the London Stock Exchange launched a new market: techMARK mediscience™, London’s international market for health-care companies. The market includes all 48 London-listed companies from the biotechnology, specialist pharmaceuticals, diagnostics, drug delivery and medical technology industries and is supported by a new index from FTSE, the index provider. techMARK is already the most successful technology and growth market in Europe. Building on this success, techMARK mediscience is the latest in a range of Exchange initiatives that focus attention on different parts of London’s markets by highlighting their common attributes. techMARK mediscience was developed in response to customer demand, with the support of industry participants and the BioIndustry Association (BIA). It provides a focal-point for the industry, filling a gap in the market by raising the profile of health-care companies. By providing focus, techMARK mediscience will draw liquidity to this new market and make investment decisions easier. The London market for health-care companies has outperformed both NASDAQ Europe and the Neuer Markt over the past two years and has the highest growth of any European healthcare market this year. UK Government Support and Regulatory Framework Government annual expenditure on bioscience research exceeds US$960 million. Charities such as the Wellcome Trust, Cancer Research Campaign and the Imperial Cancer Research Fund also provide significant funding. The UK is committed to minimising the regulatory burdens on industry consistent with maintaining appropriate safeguards for public safety. Practical and effective arrangements are in place for clearance of products, such as novel foods, through the Advisory Committee on Novel Foods and Processes (ACNFP), and diagnostics, through the Medical Devices Agency (MDA). The Gene Therapy Advisory Committee (GTAC) has taken a pragmatic and sensible approach to controls on gene therapy. The Advisory Committee on Releases to the Environment (ACRE) provides advice on GMO consents. Following a review of the regulatory system, the Government has established the Agriculture and Environment Biotechnology Commission (AEBC) to consult widely on biotechnology issues and the environment. The Human Genetics Commission (HGC) has been set up to look at genetic technologies and their impact on humans, providing strategic advice to the Government. The Food Standards Agency (FSA) has taken responsibility for the assessment of GM foods and the development of new policies. The UK-based European Medicines Evaluation Agency (EMEA) is responsible for fast-track approval of biotechnology-derived pharmaceutical and veterinary products throughout Europe. It provides a single EU-wide licence valid in all member states. The UK Medicines Control Agency (MCA) provides approval of other medicinal products and has a strong international reputation. The UK Department of Trade and Industry (DTI) has released a BioGuide to biotechnology support and regulations, which relate to all aspects of bio-science research. The BioGuide is designed as a reference for those manufacturers, importers and academics engaged in biotechnological activities. A range of support to the biotechnology industry is available through the DTI. The key elements of this support are described below:
MAJOR BIOTECH CLUSTERS (over 40 specialist biotech companies) It is no coincidence that the UK’s biotechnology community is clustered in regions with a strong scientific base. These clusters are in turn supported by a strong local infrastructure of services and many have developed initiatives which bring together local companies, academic institutes and regional development organisations. London
Oxfordshire
East Anglia (Cambridge)
Central Scotland
South East (Surrey, Sussex, Kent)
North West
For further information please contact Stan or Kishani at the UK government’s inward investment agency, Invest.UK, on +612 8247 2234 ; stan.roche@fco.gov.uk ; kishani.navaratnam@fco.gov.uk. www.invest.uk. com Copyright 2001 - AusBiotech |
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