U.K. Prime Minister David Cameron announced a series of measures to stimulate the life sciences sector and attract inward investment on Dec. 5, some of which were new, while others were similar to proposals put forward by the previous Labour U.K. government.

The measures included a new £180 million ($280 million) Biomedical Catalyst Fund to boost early-stage research, an early patient access scheme for improving the adoption of innovative medicines in the NHS, and a scheme to allow researchers and companies easier access to National Health Service patient data.

It is perhaps a sign of the government's worries about the poor health of the U.K. life sciences sector that it announced such a broad series of measures via an unexpected speech by the Prime Minister at an FT Pharma conference in London. "We are pulling every lever possible to make the U.K. a more attractive place in which to invest," Cameron declared.

While the political leaders of most European countries could voice similar desires, particularly during this time of increased austerity, the U.K. has found itself on the wrong end of several investment decisions by pharmaceutical companies over the past year or so, the most notable being the closure of Pfizer's flagship R&D facility in Sandwich, Kent, earlier this year Also see "Europe Fights To Regenerate Its Abandoned Pharma R&D Sites" - Pink Sheet, 7 March, 2011.. It's unlikely that these measures would have had any effect on Pfizer's decision, which needed to cut costs worldwide, but they might make the country a little more attractive to other companies.

During his speech, Cameron talked up the significance of the life sciences sector for the U.K. economy. He noted that life sciences were the third-largest contributor to the country’s economic growth, with 4,000 companies and a workforce of 160,000 employees, producing a total annual turnover of over £50 billion.

A Fund To Tackle The "Valley Of Death"

A key government move will be the setting up of the Biomedical Catalyst Fund, which will target the so-called "valley of death", the lack of funding for early-stage research up until the time when clinical proof-of-concept is obtained. The fund will support initial research in universities, incubate innovation in academia and help in the development of small to medium-sized companies, Cameron said.

The business-led government body, the Technology Strategy Board, will receive £90 million in new funding, and will use another £90 million from the Medical Research Council's translational research funding allocation to help academic researchers and biotech companies with funding for early-stage research including clinical proof of concept studies.

The BioIndustry Association said that it was "very pleased" with the fund, but urged the government to consider the introduction of a "Citizens Innovation Fund" as well. The BIA has been lobbying hard for a fund in which high net-worth members of the public would invest up to £15,000 tax-free annually in innovative companies. This is based on the Fonds Comunes de Placements dans I'Innovation (FCPI) scheme in France, which has raised €5.5 billion and invested in more than a 1,000 companies, it points out.

The previous Labour government set up a £200 million "fund of funds,” the UK FTF, back in 2009. However, that invested in VC funds rather than directly in biotech companies Also see "UK Innovation Investment Fund: Are The Right Managers On The Job?" - Pink Sheet, 10 December, 2009.. To date, the UK FTF has invested an undisclosed amount into five funds via the European Investment Fund (EIF), including the Heureka Growth Fund, DFJ Esprit III, Gilde Healthcare III, Scottish Equity Partners' SEP IV, and an Advent Venture Partners fund.

Scheme To Fast-Track Patient Access To New Drugs

Cameron noted that European measures designed to fast-track new life-saving medicines to the market have been woefully under-used, and the U.K. government would now issue a public consultation to set up an early access scheme for innovative drugs still in clinical trials.

This move was welcomed by the BIA, which pointed out that it may also include drugs at an earlier stage than Phase III. Such a scheme was first suggested more than two years ago, but was never moved forward Also see "UK Early Access Scheme Likely This Year, But Funding Is An Issue" - Pink Sheet, 18 January, 2010.. However, they may have a better chance this time around because of the clear support from the Prime Minister.

A further, more controversial, proposal made by Cameron was allowing anonymised NHS patient data to be accessed by researchers, including those in pharmaceutical companies.

He claimed that it would provide "the real-world evidence that scientists have been crying out for," although it has attracted numerous adverse comments from privacy campaigners. One patient group has said that it had withdrawn from talks with the government two years ago because of concerns about patient privacy.

Although details are still sketchy, Cameron suggested that patients would have to "opt-out" of their data being used outside of the NHS.

Other proposals of interest to biotech and pharmaceutical companies outlined by Cameron and other government members in two further reports issued Dec. 5 include: the outcome of NICE appraisals to be automatically included in local NHS formularies; a £50 million investment in a cell therapy technology and innovation centre; the deployment of remote medical devices to three million people over the next five years; and a web portal on the Internet to show patients where they can take part in clinical trials.

Prime Minister Cameron Plans To Boost U.K. Biotech With New "Catalyst" Fund, Early Patient Access Scheme

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