Imagine your life sciences business in London

IMAGINE YOUR BUSINESS IN
LONDON
WHY LONDON FOR LIFE SCIENCES

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

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

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

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

GOVERNMENT SUPPORT
Government 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 fund
Supportive 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 companies
Commitment from government and charities to fund research
and 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

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)

IMAGING
COLLABORATIVE ENVIRONMENT:
IMANOVA CASE STUDY
Imanova partnership (www.imanova.co.uk):
 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

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

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%)

INSTITUTIONS & CLUSTER
SUPPPORT

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)

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
 King's College London

THE FRANCIS
CRICK
INSTITUTE IN
LOCATION

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

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

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

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

COLLABORATIVE ENVIRONMENT:
ACCESS TO UNIVERSITIES
 Imperial Bio-incubator www.imperialinnovations.co.uk:
 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 www.qmbioenterprises.com:
 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 www.ktponline.org.uk:
 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

FINANCIAL INCENTIVES TO
DYNAMISE THE ECOSYSTEM
 Seed Enterprise Investment Scheme (SEIS www.seis.co.uk):
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 www.capitalforenterprise.gov.uk (£300m)
and Business Angel Co-Investment fund www.angelcofund.co.uk
(£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 www.mrc.ac.uk & the TSB
Biomedical Catalyst fund
www.innovateuk.org/content/competition/biomedical-catalyst
 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

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

JAPANESE BASED PHARMACEUTICAL COMPANY SHIONOGI & CO., LTD
LAUNCHED ITS NEW EUROPEAN HEADQUARTERS IN LONDON. SHIONOGI
ELECTED TO BASE THEIR EUROPEAN HEADQUARTERS IN LONDON FOLLOWING
AN EXTENSIVE REVIEW OF POTENTIAL LOCATIONS.

“WE ARE DELIGHTED TO BE LAUNCHING OUR
NEW EUROPEAN HEADQUARTERS IN LONDON -
WE AIM TO ACHIEVE OUR MISSION AS A COMPANY
WITH A STRONG PRESENCE IN EUROPE
TAKASHI EAKENOSHITA
”
CEO OF SHIONOGI EUROPE

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