Pioneer Group’s Life Sciences Business Reporter, Amy Cotterill, explores which government initiatives for life sciences businesses have been developing in recent months.
Return to Horizon
The UK’s re-entry into the Horizon Europe programme stands out as a pivotal move. Having previously exited due to Brexit, our return now grants UK researchers access to the extensive €82 billion scheme, marking a significant stride in fostering scientific collaboration.
“This renewed association with the EU’s flagship programme will also allow UK organisations to return to playing a key role in European research after several years on the sidelines,” says Glenn Crocker MBE, Director at Pioneer Group. “Moreover, the advancement of scientific knowledge itself will benefit from the inclusion of the UK research base, which is one of the strongest in the world, leading to developments that will benefit human and planetary health, the two areas at the heart of our mission here at Pioneer Group.”
Additional funding
In the Autumn Statement, the chancellor unveiled an array of government initiatives for life sciences businesses, specifically measures and investments aimed at catalysing growth in the life sciences domain.
Notably, £520 million has been allocated for life sciences funding, complemented by revisions to R&D tax credits and the introduction of clinical trials accelerator schemes. Health and Social Care Secretary, Victoria Atkins, said: “By delivering improvements across the whole clinical research pathway from early translation to late phase trials, we will ensure more people have access to innovative clinical trials that are relevant to them, and ultimately deliver better prevention, treatment, and care for all.”
We recently spoke to a group of investors about what they’re looking for in a life science company. Here’s what they said:
Investing in AI
Moreover, a substantial £500 million infusion into artificial intelligence (AI) over the next two fiscal years underscores a commitment to technological advancement. This funding encompasses the £100 million AI Life Sciences Accelerator Mission, one of the government initiatives for life sciences to leverage health data and AI in addressing critical health issues.
The funding will be targeted towards areas where rapid deployment of AI has the greatest potential to create transformational breakthroughs in treatments for previously incurable diseases. Find out more.
Unlocking pharma investment
New terms were agreed in November last year on a previously contentious scheme whereby pharmaceutical companies provide a rebate to the UK Government on sales of branded medicines to the NHS.
Since 2021, the effective rate of the rebate has increased from 5.1% to 26.5% – significantly higher than other similar mechanisms operated by other countries, for example, 12% in Germany, 7.5% in Spain and 8.25% in Ireland. Such was the level of dissatisfaction with the scheme that many pharmaceutical companies publicly stated they were pausing investment in the UK until the situation was resolved.
The new scheme means rebate rates will be 19.5% in 2024, falling over five years to 7.2% for newly launched drugs. We are hopeful that this should now unlock pharma company investment in the UK.
Labour’s plans for R&D and healthcare
Meanwhile, the Labour Party has unveiled plans to augment research and development investment in the pharmaceutical sector by £10 billion annually, contingent on securing power in the upcoming general election.
Its R&D funding commitment also would include creating a more streamlined funding process and increasing the number of spinouts from universities through an innovation funding structure that can allow more of them to scale up successfully.
The plan seeks a long-term approach to public funding to solidify the certainty of planning and execution. This would include setting 10-year budgets for institutions, including UKRI.
Labour sees the NHS as the potential world leader in clinical trials due to its unique position as a ‘universal, single-player system’ with access to a diverse population. The party says it will welcome medtech innovations into the healthcare system speedily by developing a new, comprehensive adoption strategy alongside industry, patients and ICSs.
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