CEO Update - 28 October 2024

Budget on Wednesday: what to watch out for

The first Budget from the new government will be presented this Wednesday. This is an important moment, not only for life sciences but for the broader UK economy. We aim to provide BIA members with a detailed written briefing within 24 hours of the Chancellor's address, highlighting salient points for our sector.

Our R&D tax credit campaign has already seen success, thanks to the hard work of our members, setting a strong foundation for future initiatives. Next week, we will host a webinar to break down the implications and opportunities for the sector; the date and time will be announced shortly.

Steve Bates OBE
CEO, BIA

Life Sciences Council

Last week saw the UK’s Life Sciences Council meet for the first time with the new government.

Cabinet Ministers Wes Streeting and Peter Kyle were flanked by Gillian Merron and Patrick Vallance, while Emma Walmsley of GSK chaired from the industry side. We discussed the aspirations of the UK’s life science sector and touched on shared concerns about access, data and clinical trials. It was a great opportunity to witness the remarkable talent driving our sector.

Boosting growth and helping people live healthier lives is a shared agenda, but access to scale-up capital remains a challenge. While we attract substantial foreign investment, UK institutions—particularly pension funds—are still under-invested. Increasing domestic investment is critical to ensuring businesses can start, scale, and stay here in the UK, balancing the influence of foreign capital in our boardrooms.

I welcomed government initiatives, namely the Pensions Review and the British Growth Fund, and BIA is eager to collaborate in addressing market failures. We’ve also proposed a Life Sciences Scale-Up Fund, in partnership with top UK investors, to create a clear path for British pension funds to invest in the UK’s leading biotech firms.

Digital sequence information

At COP16 in Cali, much has been said about digital sequence information (DSI) and the need for biodiversity profit-sharing. Such a proposal would have profound implications for the UK life sciences sector. The desire to compensate biodiversity-rich nations for their resources is understandable, but a sweeping tax risks imposing heavy barriers to innovation and growth, especially as other nations (including the US) do not support this approach. The UK’s participation, especially if not taken in conjunction with other allied countries, could leave our sector at a disadvantage in global research competitiveness.

Influencing and shaping our sector report

Influence is at the heart of what we do at BIA, and our latest 'Influencing and shaping our sector' report published today offers a fantastic look at how we’ve shaped policy over the last quarter. Some key highlights include:

• Engaging with the new government to influence life sciences policy.
• Sending 104 letters to ministers and MPs to ensure our sector’s voice is heard at the highest levels.
• Participating in key discussions, including roundtables with Science Minister Patrick Vallance and panels at party conferences, focusing on unlocking pension funds for biotech investment.
• Pushing forward on critical issues like R&D tax credits, pension reform, and manufacturing grants for life sciences.

Make sure to read the report and see how our efforts are creating a more supportive environment for UK biotech growth.

Private Members’ Bills

Among the many Private Members’ Bills tabled in the Commons this session, two stand out. One, introduced by Dr Scott Arthur MP, seeks to incentivise pharmaceutical companies to develop treatments for rare cancers, including glioblastoma brain tumours. This Bill aims to replicate the success of the USA’s 1983 Orphan Drug Act, which has significantly increased the number of approved treatments for orphan diseases. Another seeks to prohibit the use of animals in medical research and mandates the use of non-animal methods for conducting medical research and related activities. Although neither are likely to make it to the statute book it shows something of the interest by parliamentarians in issues close to our sector’s heart – and it illustrates why explaining who we are and what we do to the new MPs is so important.

Furthermore, on Wednesday, Parliament introduced the Data Use and Access Bill, aiming to unlock data’s potential to boost the UK economy by £10 billion, reduce burdens on NHS and police services, and create a secure framework for public-interest data use without straining public finances. This is a forward-thinking Bill which will not only support the UK economy but also increase public sector efficiency.

NHS consultation

As part of the government’s health mission to build a health service fit for the future, it has introduced a 10-Year Health Plan. The government will co-develop the plan with the public, staff and patients through a detailed engagement exercise. To achieve its aim, it has launched ‘Change NHS: help build a health service fit for the future’. This is a national conversation to develop the 10-Year Health Plan. The portal opened on 21 October 2024 and will run for several months.

Investing in the UK’s university spinouts

Cambridge Innovation Capital, Oxford Science Enterprises and Northern Gritstone have launched a microsite showcasing the content of a great event they held in London’s Mansion House for London investors on the exciting investment opportunity being nurtured across the UK's university spin-out ecosystem.

They presented their teams of deeply experienced, highly specialist investors, and operators, deploying capital and ancillary support to companies with the potential to contribute to a sustainable future. They also made the case that just one trillion-pound company emerging from a leading university ecosystem would significantly enhance the UK’s economy and productivity. It was great to see BIA board member Ross Deagan, CEO of Omass Therapeutics, selected as a representative of the fastest-growing UK science and technology spin-out companies.

Future of UK life sciences regulation conference

We are a little over a week away from our annual Future of UK life sciences regulation conference with the MHRA. It’s a star-studded line-up and I’m looking forward to hearing from Baroness Gillian Merron, the new Minister responsible for life sciences and the MHRA in the Department of Health, as well as from June Raine and the MHRA top team.