The Government has responded positively to some of the longer-term recommendations around regulation, such as taking leadership on the EU Clinical Trials Directive, and making stratified diseases an important area of activity. As previously announced in the Budget, the review of taxation relating to innovation, is another initiative which could potentially reap benefits for the sector in the future. The recognition of the importance of regenerative medicine and bioprocessing is also to be applauded.
However, those recommendations relating to finance, such as the establishment of an innovation fund, changes to R&D tax credits and EIS and VCT schemes, and the consideration of incentives to encourage pharmaceutical company investment in biotechnology companies, have been overlooked or rejected. This is extremely disappointing and gravely concerning at a time of unprecedented financing challenges for bioscience companies. It remains unclear whether the Strategic Investment Fund, again referenced in the foreword to the report, will materialise into the high tech innovation fund this industry needs. Without Government support in this area, the Government’s own vision for “the medical biotechnology industry... to play a key role in driving our economy in the future” is not achievable.
Clive Dix, Chairman of the BIA commented:
“We recognise that Government has done much to support the sector since 1997, and welcome the Government’s willingness to tackle some of the longer-term issues identified in the Bioscience 2015 Review report. However, overall we do not feel that the Government’s responses have gone far enough, and are particularly disappointed that the issue of access to finance has not been addressed at this critical time.
“We welcome the Secretary of State’s reference today to a review of further intervention to support growth capital for SMEs, but this needs to be done urgently. We also need urgent clarification as to how the £750 million Strategic Investment Fund, whose advent we welcomed, will be deployed.
“What I am being told daily by members is that for biotech to become a new driver of growth and prosperity and play a leading role in driving our economy, as Government wishes, then company financing still need to be addressed. “The realisation of the vision that Government articulates again today depends on clarity on funding as soon as possible. We are in a critical period where detail and specifics are everything.”
BioIndustry Association
Established in 1989, the BIA (BioIndustry Association) exists to encourage and promote a financially sound and thriving bioscience sector within the UK economy and concentrates its efforts on emerging enterprise and the related interests of companies with whom such enterprise trades.
With over 300 members, the BIA supports a wide range of sectors, majoring on the human health benefits of the technology and represents the interests of these innovative companies to a broad section of stakeholders from patient groups to politicians, advancing its members interests both within the UK and internationally to create a healthy UK bioscience sector which benefits society. For further information, please go to: www.bioindustry.org
