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Imagine your life sciences business in London


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Imagine your life sciences business in London

  2. 2. WHY LONDON FOR LIFE SCIENCES In 2011, pharmaceuticals, medical biotechnology and medical technology sectors together comprise around 4,500 firms, employing 165,000 staff, with an R&D spend of nearly £5bn and an annual turnover of over £50bn Life sciences manufacturing, which accounts for 8% of the UK total (by GVA) remains important for the UK’s growth. The pharmaceuticals sector alone accounts for more UK-based business R&D than any other manufacturing sector (accounting for over 28% of all business R&D) Over 300 pharmaceutical companies are based in the UK and employ nearly 78,000 people, with an annual turnover of £31bn. The medical technology and medical biotechnology sectors represent over 4,000 companies employing 87,000 people with an annual turnover of around £18.4bn
  3. 3. WHY LONDON FOR LIFE SCIENCES More progressive regulatory environment that not only supports innovation, but openly promotes it London benefits from £16bn of public sector healthcare, research and teaching spend annually, with further funding committed by the government London is home to nearly 1,000 companies in life sciences, and more than 8,000 in healthcare
  4. 4. THE RIGHT ENVIRONMENT London is the most accessible city in the world, from both a travel and time-zone viewpoint London has more than 40 universities with 1,300 biomedical researchers and five world class medical schools and 12 teaching hospital, more than 50 clinical institutions with a huge patient population for clinical trials Hospitals: patients, research & research facilities, with access to a diverse and concentrated population through NHS patient records London’s life sciences offering is growing with the set up of the Francis Crick Institute and the Cell therapy catapult centre, both in central location and easy to access The London Stock Exchange (LSE), with its Alternative Investment Market is, increasingly, the public market of choice for European biotechs London provides easy access to VCs and service providers, including lawyers, accountants, and public relations consultants, which biotechs require to build their businesses Presence of additional funding bodies e.g., The Wellcome Trust, Medical Research Council, and Imanova
  5. 5. THE RIGHT ENVIRONMENT Incubator space: • London BioScience Innovation Centre (LBIC) • Imperial Bio-incubator: based in South Kensington, the aim of this £7m incubator space is to bring valuable ideas to market either by building businesses or licensing to industry • Queen Mary Bio Enterprises in Whitechapel: a £28m and 39,000 square feet capacity building, providing state of the art London laboratory and office space Home to the Medicines and Healthcare products Regulatory Agency (MHRA) and European Medicine Agency (EMEA) Availability of laboratory and office space in the London BioScience Innovation Centre (LBIC) next to St Pancras Station in central London (biotechnology, life science product and diagnostic companies, contract research organisations, medical device companies and service providers operating in the same space) Universities are increasingly collaborating on commercial opportunities: offering access to academics, students and laboratories to companies Host to headquarters of 2 of the top 10 global Pharma companies (GSK and AZ), with high levels of research activity e.g., AZ invested over £1.1 bn in UK R&D Host to R&D centres of other international biotechnology companies e.g., Amgen’s international R&D HQ in UK
  6. 6. GOVERNMENT SUPPORTGovernment commitments: Injection of £100m in universities research facilities from 2012/13 with aim to attract further co-investment from private sector Launch of the UKRMP (UK Regenerative Medicine Platform), a £25m cross research council fundSupportive tax and regulatory environment: Patent box: 10% corporate tax on profits derived from patents (new and existing) R&D tax relief: 225% tax relief available to SMEs, 130% to large companiesCommitment from government and charities to fund researchand commercial applications: £130m in stratified medicine £60m over 3 years to fund researchers to work on treatments for chronic diseases £60m over 4 years to collaborations between academia & industry to further develop stratified medicine Technology Strategy Board (TSB) initiatives: Cell Therapy Technology Innovation Centre, a catapult centre for regenerative medicine, and the BioMedical Catalyst fund, a £180 m initiative set up in collaboration with the Medical Research Council
  7. 7. UNIQUE TALENT POOL The UK accounts for 11% of the world‟s citations in biological sciences and has a long history of breakthroughs discoveries (e.g.: Alexander Fleming discovering the penicillin in 1928) World class universities: London has seven universities in the Times Higher Education world top 200 university rankings – more than any other city in the world Nobel prizes: as of 2010, there were 72 Nobel prizes laureates affiliated to the University of London, 26 affiliated to UCL. London claims 14 Nobel Prize winners in Medicine and Physiology, and 25 overall in sciences 39,404 research papers are generated in London, second only to Boston (50,106) 2011/2012: 45,000 domestic students in medicine subjects + 5,000 foreign students; 14,000 domestic graduates + 2,500 foreign graduates Access to university talent and resources through Knowledge Transfer Partnerships (KTPs): 60% funded by grants, the aim is to encourage knowledge transfer through collaboration with business environment The Medical Research Council committed £70million to support PhD students and 320 posts across the UK; while the National Institute for Health Research (NIHR) is to support 1,600 research training posts Funding form from charities such as The Wellcome Trust & Cancer Research UK Recruitment of foreign scientists made easier by new regulation: several entry routes possible (guest lecturer, external examiner, intra- company transfer)
  8. 8. IMAGING
  9. 9. IMAGING COLLABORATIVE ENVIRONMENT: IMANOVA CASE STUDYImanova partnership ( Collaboration between the Medical Research Council, Imperial College, University College and King’s College Objective to provide a state of the art imaging research facility to develop new applications (current strengths are on cancer and neurosciences) Collaboration with British life sciences company GSK, which transferred its imaging capabilities in London London to become a national hub for imaging facilities and collaboration between academic and commercial institutions
  11. 11. CLINICAL TRIALS National Institute for Health Research (NIHR) to help clinical trials company by facilitating access to the NHS capabilities, with record investment of £800m over 5 years from 2012:  NIHR Office for Clinical Research (NOCRI) helps companies to find experts to support their studies  NOCRI establishes a communication link between companies and the NIHR  Network providing delivery of the studies in the NHS & assistance in seeking approval to run the medical trials  Provides technical support and access to expertise through biomedical research centres (Universities & NHS partners). King’s College is developing an informatics system to support this initiative Support from government with simplification of clinical trials approval times Adoption of the Academic Health Science Centres (AHSC) model, with Imperial, King’s College and UCL already partners; the objective is to accelerate the research developments into applications benefiting the patients The London AHSC are exploring the idea to create information systems using NHS information to allow for large groups of patients to take part into global clinical research As well as big-name clinical research organisations including Quintiles and Parexel, London is home to specialist CROs such as Pharmidex, William Harvey Research Ltd and Cerebrion
  12. 12. HEALTHCARE
  13. 13. HEALTHCARE The total UK private healthcare¹ market by sector by value reached £30.4bn in 2010, a 19.5% increase on 2006 value Health, social care and special education services are a major focus of economic activity in the UK, and currently accounts for 11.1% of UK GDP The growing demand for healthcare, given the population ageing and the increasing privatisation of healthcare (due to the increasing pressure on NHS capacity) insulated the sector from recession Government allowing private medical companies to carry NHS treatments: trend towards outsourcing is forecasted to grow As a result, opportunities in long term care (driven by elderly population) and acute care (short term active treatment) are likely to increase in the next few years Potential for innovation and convergence: better quality of living, smart houses / e-healthcare: London as the hub in tech innovation and financial community to fund applications Opportunities for VC and PE to become more involved in the market and help accelerate growth The marketplace includes big players such as Atos Healthcare, AXA PPP Healthcare, Barchester Healthcare, but the majority are small and medium-sized providers Private Medical Insurance: currently less than a third of British residents are thought to have private insurance², in majority men & women aged 35-54 (41%), form social classes A and B (59% of respondents); Over a third are residing in the Greater London & South East areas (37.2%)
  15. 15. CELL THERAPY CATAPULT CENTRE The global commercial cell therapy industry was estimated to have an annual turnover of $1bn in 2011, is forecast to grow to $5bn by 2014, with even greater growth predicted beyond that Due to be launched in end of 2012, the Cell Therapy Catapult centre will be an autonomous entity, independent of higher education institutions, that will play a significant role in speeding up development and accelerating routes to market £50m over 5 years committed from research councils, the National Institute for Health Research (NIHR) and the Technology Strategy Board (TSB), with £10m per year investment Offering state of the art laboratories and offices in St Guy’s Hospital, central London Collaboration between academics, businesses and clinicians to focus on the commercial development of cutting-edge technologies in regenerative medicine clinical offerings Current developments include Julie Daniels limbal cell grafts at the Institute of Ophthalmology, UCL as well cell & gene therapy combinations at the Great Ormond Street hospital Cell therapy players in London and immediate surroundings include Cell Medica, ReNeuron (now in clinical phase)
  16. 16. THE FRANCIS CRICK INSTITUTE Due to be launched in 2015, the objectives of the biomedical science research institute are:  to generate new insights and knowledge about the biological mechanisms controlling cell, tissue and body function  through collaboration, to find ways to prevent and drive forward better treatment of the most significant diseases affecting people Consortium of academic & scientific institutions:  The Medical Research Council (biomedical research)  Cancer Research UK (cancer charity)  The Wellcome Trust (charitable foundation)  University College London  Imperial College London  Kings College London
  18. 18. ONE NUCLEUS Commercial, clinical and academic powerhouse for international life science and healthcare companies formed in 2010 by the merger of two regional life science networks – Cambridge-based ERBI and the London Biotechnology Network (LBN) Promoting collaboration between Cambridge and London thus tapping onto the heart of Europe’s largest life science and healthcare cluster;  London and Cambridge are home to at least 60% of the UK’s life science industry base, four of the UK’s five Academic Health Science Centres and three of the world’s top six universities The institute’s mission is to improve the global competitiveness of its members by:  Giving access to a large pool of companies and thus supporting business-to-business interaction  Providing visibility to members through a cluster of international size and relevance  Providing discounted entry to events in London and Cambridge  Allowing for economies of scale supporting a group purchasing scheme  Providing a training programme focused on the needs of the members
  19. 19. LONDON BIOSCIENCE INNOVATION CENTRE (LBIC) Owned by the Royal Veterinary College, it hosts over 35 biotechnology and life science companies in central London, including small start-ups and more established players Tenants include biotechnology, life science product and diagnostic companies, contract research organisations, medical device companies and service providers Provides laboratory and office facilities of high standard and a professional front door a short walk from St Pancras International and the site of the new UK Centre for Medical Research and Innovation (UKCMRI) Clients benefit from shared networking space and meeting rooms as well as close proximity to the various financial services available throughout London. An experienced management team in building and supporting biotechnology businesses
  20. 20. LONDON REGENERATIVE MEDICINE NETWORK (LRMN) Over 6,000 members from the general public, patients, patient groups, politicians, students, scientists, clinici ans, engineers, industrialists, funding agencies, regulators and the media Forum for new regenerative medicine technologies to be presented and discussed via monthly meetings Committed to helping facilitate the building of a competitive and sustainable international cell and gene therapy industry in the UK Facilitated collaborations and the launch of the Regenerative Medicine journal to accelerate delivery of safe, efficacious therapies that can be affordably manufactured at scale for use in routine clinical practice
  21. 21. UK REGENERATIVE MEDICINE PLATFORM (UKRMP) In Sept 2012, the Biotechnology and Biological Sciences Research Council (BBSRC), Engineering and Physical Science Research Council (EPSRC) and Medical Research Council (MRC) launched a £25m UK Regenerative Medicine Platform (UKRMP) to address the technical and scientific challenges associated with translating promising scientific discoveries in this area towards clinical impact Objectives:  interdisciplinary and complementary research hubs to promote the development of regenerative therapies  Part of the broader UK research strategy seeking to support high quality UK research activity and translational activity that will help deliver the great promise of regenerative medicine to the benefit of both patients and future economic growth BBSRC, EPSRC and MRC are inviting proposals to establish high quality, collaborative research groupings to address key challenges in translational regenerative medicine The five main themes (hubs) of research are: 1. Cell behaviour, differentiation and manufacturing; 2. Engineering and exploiting the stem cell niche; 3. Safety and efficacy, focussing on imaging technologies; 4. Acellular (smart material) approaches for therapeutic delivery; 5. and Inducing immune tolerance
  22. 22. COLLABORATIVE ENVIRONMENT: ACCESS TO UNIVERSITIES Imperial Bio-incubator  A £7m incubator space based in South Kensington, to bring valuable ideas to market either by building businesses or licensing to industry Queen Mary Bio Enterprises in Whitechapel  A £28m and 39,000 square feet capacity building, providing state of the art London laboratory and office space, and access to world class clinical, teaching and research resources (Royal London Hospital nearby)  Providing support for new ventures and being a hub for entrepreneurial activity. Tenants located at the Innovation Centre can benefit from opportunities to access the facilities available at the world class London School of Medicine Dentistry; access to the university business support network and investors events; and leverage Queen Mary technical and commercialisation experience in the healthcare and biotechnology sectors Knowledge transfers  KTP is a programme run by the Technology Strategy Board (TSB), a partnership between a University, a graduate and a company/organisation with a strategic need that could be solved via knowledge transfer  Recruitment of a graduate to work on a knowledge transfer project from 6 months to 3 years to help unlock a company’s potential  Available to a wide range of sectors and partly funded by the government (covering 60% of costs for SMEs; up to 50% for larger organisations). Growth potential by over 40% for participants  A large amount of KTP funding remains unallocated in 2012. At a recent workshop held by the TSB it was announced that good project applications are needed urgently as the money must be spent this year
  23. 23. FINANCIAL INCENTIVES TO DYNAMISE THE ECOSYSTEM Seed Enterprise Investment Scheme (SEIS Governmental scheme to help small and early stage UK-based start- ups: companies must employ less than 25 people and must have assets of less than £200,000. Benefits:  50% income tax relief on investments  Capital gains tax exemption on gains (from sale of asset)in 2012/2013 financial year if investment in the SEIS the same year Enterprise Capital Funds (£300m) and Business Angel Co-Investment fund (£50m): to finance innovative SMEs with high growth potential Commitment to invest £180m in 2012-2014 to support discovery, development and commercialisation of research:  Funds allocated by the MRC & the TSB Biomedical Catalyst fund  In August 2012, University College London (£700,000), Imperial College (£700,000) and King’s College London (£500,000) received funds to transform early stage research ideas into commercial applications  A further £130m to invest in later stage development
  25. 25. UK LIFE SCIENCES STRATEGY Build an integrated ecosystem promoting collaboration between companies and research institutes Easy commercialisation of academic research:  Encouraging knowledge transfers from academia to businesses  Find Kinston initiative – it does exist at national level and is sanctioned by gvt (funded); Technology transfer office Imperial Innovations at Imperial College  Contributions by public and charity funding to accelerate research and therefore contribute to products developments Clinical research as innovation driver within the NHS:  The government announced £800 m in clinical research over the next 5 years (new NIHR Biomedical Research centres and partnerships to boost research in cancer, dementia, ageing conditions, etc.)  Resource finder point offers up to date information about knowledge and technologies by location, research topic, skills and equipment The UK as a place to deliver life sciences innovation
  28. 28. THE EXPERTS ON DOING BUSINESS IN LONDON HOW WE CAN HELP YOU SET UP BUSINESS FIND THE PROPERTY FIND THE BUSINESS FIND THE EXPAND YOUR YOUR &PROPERTY LOCATION CASE RIGHT PEOPLE NETWORK LONDON & LOCATION- Sector Intelligence - Specialist Recruitment - Office Specialists - Professional Service - Culture & Social Life- Legal Requirements - Funding & Training - Market, Clients & -- Events - Visas & Work Permits- Corporate/Tax Structure - Salary Benchmarking Transport -- Government Contacts - Schools & Colleges- Cost-effective Set-up - Employment Practice - Labour Pool -- Policy-makers - Demographic Mapping WWW.LONDONANDPARTNERS.COM/IMAGINEYOURBUSINESS BUSINESS@LONDONANDPARTNERS.COM @L_PBUSINESS JOIN US ON LINKEDIN: „LONDON & PARTNERS FDI GROUP‟