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 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 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 companiesCommitment 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

IMAGINGCOLLABORATIVE 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

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

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, clinicians, 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

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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