OBN/EMIG Call for Long Term Commitment to Biomedical Catalyst

OXFORD, England and LONDON, October 8, 2014 /PRNewswire/ --

OBN and EMIG - organisations with a combined membership of approximately 570 emerging R&D companies in biotechnology and medical technology, and established small and mid-sized biopharmaceutical firms, respectively - have called on the UK government to allocate additional funding to support the industrial component of Innovate UK's Biomedical Catalyst (BMC).

Jon Rees, OBN's CEO commented, "With EMIG, OBN has written to the Prime Minister, the Rt Hon David Cameron, to express our concern about the industrial component of Innovate UK's Biomedical Catalyst (BMC) programme. In our view it is one of the most successful interventions to stimulate innovation among emerging life sciences R&D companies since the introduction of R&D tax credits, but has been allocated just £30m in Innovate UK's Delivery Plan 2014/15, and with no further commitment to the programme beyond early 2015. This is a clear contradiction to the government's stated long-term support for UK life sciences."

The BMC programme is a key element in the government's ten-year Strategy for UK Life Sciences, launched in December 2011.  Speaking at the time, Minister for Science David Willetts described the programme as helping to "bridge the 'valley of death' that exists between when a bright new idea is developed in the laboratory and the point when a new drug or technology can be invested in by the market".

Early responses, cited in the Strategy for UK Life Sciences: One Year On progress report, noted that BMC was already having the intended impact of stimulating innovative research. The first round of funding had "attracted significant new risk capital co-investments and much enthusiasm from the small and medium enterprise sector". OBN members - many doing the type of innovative R&D with high growth potential that government says it wishes to support - have received in more than £40m of BMC funding.

Leslie Galloway, EMIG's Chairman, comments, "We are calling for the government to make a firm and public commitment to continuing the BMC industrial component beyond Round 8 for the full ten-year period of the UK Life Science Strategy. We propose that the industrial component should be increased to £50m per annum to be allocated to both therapeutics and medical technology projects. Further, we are seeking a commitment to upfront payments for feasibility-stage projects. In response to reported difficulties in raising seed stage funding, we want the requirement for Feasibility Awards matched funding to be lifted."

The two organisations concluded, "If Government is serious about maintaining the UK as the best place in the world for life sciences innovation, a sustained, public sector programme is vital for directly de-risking technology development. The equity gap remains a reality. Withdrawing support for the programme will effectively demolish the bridge when only a handful of companies have managed to cross."

About OBN 

OBN is the Membership organisation supporting and bringing together the UK's emerging life sciences companies, corporate partners and investors. Our 350-plus Member companies are located across the Golden Triangle and beyond to Nottingham, Manchester and Scotland. Information about OBN's tailored networking and partnering events, purchasing consortium, advice, consultancy services and advocacy activities is available on OBN's website http://www.obn.org.uk.

About EMIG 

EMIG is the research based biopharmaceutical trade association that represents the interests of over 200 companies and organisations based in the UK. Our members range from start-ups, whose prime focus is often research and development (R&D), to highly developed businesses delivering essential products to patients and the NHS. They are commonly, but not exclusively, small to medium-sized enterprises (SMEs). Less than 20% of our members are represented by other trade bodies.

The UK life sciences industry provides vital medicines to patients, is at the forefront of medical innovation and is a significant contributor to the UK economy.  SMEs constitute approximately 90% of the total number of biopharmaceutical companies and it is estimated that 80% of innovation is derived from these small companies. EMIG member companies employ approximately 20,000 people in the UK and have a combined annual turnover of £4bn. http://www.emig.org.uk

About the BioMedical Catalyst 

The BioMedical Catalyst was implemented to help UK R&D companies to access much needed funding to aid the development of innovative products and technology, in attracting private finance and ultimately to treating areas of unmet medical need. BioMedical Catalyst, launched as a key action within the government's Strategy for UK Life Sciences and aimed at addressing market failure in the financing of early-stage innovative biomedical R&D companies in the UK, is designed to effectively translate basic research into products with market potential. This joint £180m Innovate UK and Medical Research Council programme offers funding to innovative small and medium sized enterprises and academics looking to work either individually or in collaboration to develop solutions to healthcare challenges. The Biomedical Catalyst accepts innovative ideas from any sector or discipline that demonstrate the potential to provide significant positive healthcare and economic impact. For further information, go to http://www.innovateuk.org/-/biomedical-catalyst

Notes to the Editor 

OBN Contact
Jon Rees, CEO
Tel  +44(0)845-5049-722 or Mobile: +44(0)7795233883
Email: [email protected]

EMIG Contact
Helen Walsh
Tel: +44(0)207 025-2311
Email: [email protected]

Citigate Dewe Rogerson
Sita Shah/Janine Chase
Tel: +44(0)207-638-9571
Email: [email protected] /[email protected]

SOURCE OBN