Government Boosts UK Life Sciences with £650m 'Life Sci' Package

The financial measures include:

• £250 million as part of the Long-Term Investment for Technology and Science (LIFTS) initiative, to encourage pensions to invest in UK's growing science and technology businesses.
• £154 million towards improving UK Biobank, with funding a new facility at Manchester Science Park, that will involve a new hub to help SMEs collaborate with industry and academia and have better IT.
• £121 million to target faster clinical trials and access to real-time data via new Clinical Trials Acceleration Networks. This comes in light of the recent O'Shaughnessy Review, which had called for regulatory reform, quicker study set-ups and approvals, and better access to data, in order to make the UK an attractive place for clinical trials.
• £38 million for a Biomanufacturing Fund, to make the UK better placed to cope with future pandemics.
• £10 million on projects to drive innovation around manufacturing medicines, including use of nucleic acid technology and intracellular drug delivery.
• £7 million for Innovate UK to enable life sciences to have a highly skilled and world-leading workforce.

Amongst other announcements:

• Medicines and Healthcare products Regulatory Agency (the MHRA) is going to launch a pilot 'biobank' with Genomics England to have a new genetic resource that will aim to better understand how people's genes can affect medicine safety.
• The MHRA will consult in the autumn around international recognition of medical devices.
• The Government is looking to change planning rules to free up more lab space, including by updating the Planning Practice Guidance - to help local authorities take more account of the commercial land needs of businesses and better plan for inward and high value investment.
• There is the publication of a life sciences flexible apprenticeship manual to support businesses taking on apprentices in the sector.
• The Government has set out further plans for the new East West Rail (EWR) railway line to enhance connections between Cambridge and Oxford within the Golden Triangle.
• Academic Health Science Networks (AHSNs) will be rebranded as Health Innovation Networks, with the objective of enhancing collaborations between the NHS, local communities, charities, academia and industry to share best practice.

These Measures Are Welcome, But More Support Is Needed for the Sector

These measures are to be welcomed and show the UK Government's support for life sciences.  Three of the measures - dealing with regulatory obstacles to marketing products, access to skills, and access to space - are featuring at the invitation-only PING Conference, which VWV is holding on 19 June 2023 in association with the Ethical Medicines Industry Group (EMIG). 

The elephant in the room, though, is the impact of VPAS (the Voluntary Pricing and Access Scheme) on suppliers of medicines to the UK, an issue that is forcing pharma to decide whether the UK is a destination they should focus on.  VPAS provides for branded pharma to pay back some of their revenues, according to how successful pharma has been in selling more medicines.  This is effectively an unbudgeted and uncertain additional tax, which was 5% on revenues in 2021, 15% in 2022 and an eye-watering 26.5% in 2023.  Pharma is saying these levels are unsustainable.  The Association of the British Pharmaceutical Industry (ABPI) is currently negotiating a new five year deal on behalf of industry with Government. 

ABPI Chief Executive, Richard Torbett, praised the Life Sci announcement but gave a warning on VPAS: "Today’s announcements show that the government recognises the huge opportunity waiting to be grasped if the UK can unlock the economic potential of its life science industry.  However, improving research is only one part of the equation.  To get innovative medicines to patients and fully capture the growth opportunity, we must also fix the commercial environment, and for that, we also look forward to agreeing with Government to a new and improved Voluntary Scheme as soon as possible."

At the PING Conference on 19 June, Richard Williams, an expert on VPAS issues, and EMIG's Chair Leslie Galloway will be giving an update and their thoughts on where we are at on VPAS and what could happen next.

If you would like to be invited to attend the PING Conference in association with EMIG, in June, please contact Paul Gershlick in our Pharmaceuticals and Life Sciences team on 07795 570 072, or complete the form below.