A new £50m investment fund aims to help UK companies bridge the translation gap between cancer drug discovery and early-stage product development.

The CRT Pioneer Fund, with equal contributions from Cancer Research Technology (CRT) and the European Investment Fund (EIF), aims to take cancer drug candidates from discovery through to phase II clinical trials.

The new fund was welcomed by the Bioindustry Association (BIA), the trade association for the UK bioscience sector, who said it came at “a particularly good time for life sciences in the UK”.

The fund’s starting capital of £25m will be doubled by the founders and/or potentially other investors.

CRT is the commercial arm of Cancer Research UK, whose widespread research networks will provide projects for the investment of at least two-thirds of the new fund, with the rest coming from other academic groups or industry.

David Willetts (pictured), Minister for Universities and Science, said: “In our Strategy for UK Life Sciences we set out ambitious plans to build on the success of the industry by fostering collaboration between our excellent research base and businesses. This initiative from Cancer Research Technology and the European Investment Fund will complement this work extremely well.”

“The creation of this landmark fund addresses the problem of funding the development gap which is restraining cancer drug development in the UK,” said Dr Keith Blundy, CEO of CRT.

“This important investment means we can take forward the most innovative approaches using our in-house drug discovery and development capabilities, to progress promising treatments from the lab all the way to clinical trials, translating our world-class scientific research into new treatments more quickly.”

Richard Pelly, EIF Chief Executive, noted: “This investment targets a stage of the investment spectrum often neglected by the market. The CRT Pioneer Fund will primarily follow a licensing model rather than creating companies.”

Glyn Edwards, BIA Interim Chief Executive, commented: “The launch of the CRT Pioneer Fund will provide another financing option for companies and academics in the UK looking to translate their cancer drug discoveries into clinical development.

“The fund arrives at a particularly good time for life sciences in the UK, following the launch last week by the Wellcome Trust of a £200 million venture fund and GlaxoSmithKline’s decision to invest £500 million in biopharmaceutical manufacturing in the UK.”

GlaxoSmithKline is to build its first UK manufacturing facility in nearly four decades at Ulverston, Cumbria, as part of a new £500m investment plan.

The £350m development will be joined by a £100m investment at GSK’s manufacturing sites in Montrose and Irvine, Scotland, and a combined £80m project at Ware, Hertfordshire, and at Barnard Castle, County Durham.

Prime Minister David Cameron described the “major investment” as “excellent news” for the UK economy and life sciences sector.

It’s believed the investment will create as many as 1,000 new jobs across the UK in measures GSK hopes will increase productivity of key active ingredients.

The investment represents one of the largest commitments to the life science sector in recent years, GSK says.

The plan follows the Government’s confirmation in its Budget that it will implement a “patent box” scheme to encourage and reward UK innovation by lowering corporation tax on profits gained from UK-owned intellectual property.

Sir Andrew Witty, GSK’s CEO – who was recently awarded a knighthood for services to the economy and the UK pharmaceutical industry – said the introduction of the incentive has “transformed the way in which we view the UK”.

He commented: “We will build GSK’s first new UK factory for almost 40 years and we will make other substantial capital investments in our British manufacturing base. We are also actively considering other investments in our UK manufacturing network which would create further jobs and reinforce the UK’s international competitiveness and as a world leader in life sciences.”

The new state-of-the-art biopharmaceutical manufacturing plant in Ulverston will begin construction within two or three years. It is expected to be completed before the end of the decade.

GSK may double its investment within the site to £700m and create further jobs in the long term, depending on “improvements in the environment for innovation in the UK”, it said.

The investment across its Scottish sites includes funding at Montrose to enable the manufacturing of key materials for GSK’s portfolio of respiratory medicines. At Irvine, it will increase production capacity for antibiotics.

It will also increase manufacturing capacity for its next-generation respiratory inhalation device at Ware, and establish a dermatology manufacturing centre of excellence at Barnard Castle.

Glyn Edwards, The BioIndustry Association’s Interim Chief Executive, said the investment “is a fantastic boost for the UK’s life sciences sector”. Stephen Whitehead, ABPI Chief Executive, said the commitment from GSK will reinforce the UK’s “image as a great place to companies to do business”.

The Association of the British Pharmaceutical Industry (ABPI) and The BioIndustry Association (BIA) have welcomed the continued support for life sciences in the 2012 Budget.

Chancellor of the Exchequer George Osborne revealed plans to reduce corporation tax to 24% next month – and then to 22% in 2014 – and introduce new tax measures to support R&D.

Mr Osborne also confirmed changes to the Controlled Foreign Companies (CFC) rules to make the UK a more attractive base and cut taxes on medicine patents.

Stephen Whitehead (pictured), Chief Executive of the ABPI, says the measures will allow UK pharmaceutical companies to “remain competitive in a global market”.

He added that the planned tax regimes were “welcome” and highlighted the importance of the industry to the UK. Currently, the UK pharma industry generates around £7bn in trade surplus and employs approximately 67,000 people.

Glyn Edwards, BIA Interim Chief Executive, said he was “pleased” that the Chancellor continues to support the life science sector in the budget.

He commented: “The Chancellor’s plans to help enable the commercialisation of research, invest £100 million in new university research facilities and to increase the Enterprise Management Incentive Scheme grant limit are to be welcomed.”

But despite the Government’s backing, Mr Edwards believes further proposals suggested by the BIA should have been included as part of this year’s Budget. “The BIA believes that this commercialisation will be helped if innovative companies have access to additional sources of funding, such as that offered by our proposed Citizens Innovation Funds,” he said. “These funds would make the Government an enabler rather than a provider of much-needed investment in innovative businesses.”

Other measures aimed at improving business opportunities include enhanced capital allowances for businesses establishing premises in new Scottish enterprise zones in Dundee, Irvine and Nigg, plus one in Wales at Deeside.

The Government will also provide £150m of tax increment financing to assist councils in promoting development, an extra £270m for the Growing Places fund, and consultation on simplifying the tax system for small firms with a turnover of up to £77,000.

A new UK life science strategy launched by Prime Minister David Cameron aims to create a more favourable environment for industry in which the NHS and life science companies work ‘hand-in-glove’.

The strategy includes measures to improve the implementation of NICE guidance, funding to support early-stage research and plans to make more NHS patient data available for clinical trials.

Industry response has been enthusiastic, with the ABPI and the BIA welcoming the support given to medical research and start-up companies.

However, the plans to ‘open up’ patient data to the private sector have been widely criticised, with the Government accused of undermining patient confidentiality.

Cameron stated that the UK life science industries, which already generate £50 billion a year, can use the expertise of British universities and the rich data resources of the NHS to develop world-leading therapies.

But to achieve this, he argued, the NHS needs to share more patient data with industry and to implement innovative treatments more quickly. “The endgame is for the NHS to be working hand-in-glove with industry as the fastest adopter of new ideas in the world,” he said.

Measures to improve the implementation of NICE guidance include: automatic inclusion on formulary for recommended treatments; formation of a NICE Implementation Collaborative to support uptake; and publication of an ‘innovation scorecard’ to assess the success of guidance in practice.

Stephen Whitehead, Chief Executive of the Association of the British Pharmaceutical Industry, commented that the new proposals “will contribute towards patients receiving better treatments more quickly and build the UK’s attractiveness as a leading hub for medical and health research.

“Specifically, we welcome the introduction of a NICE compliance regime to reduce variation of medicines uptake, increase compliance with NICE technology appraisals, and ensure rapid and consistent implementation throughout the NHS,” he said.

Cameron also announced a new £180 million ‘catalyst fund’ to assist start-up companies in taking innovative medical ideas to the point where they are able to attract private investment.

Glyn Edwards, interim Chief Executive of the BioIndustry Association, praised this measure: “The BIA is very pleased to see the Prime Minister commit to a £180 million BioMedical Catalyst Fund; we look forward to seeing the details of this initiative, and how it will work to support innovative SMEs facing the ‘valley of death’ funding gap.”

However, Dr Glenn Crocker, Chief Executive of life science incubator BioCity Nottingham, noted that the funding would not stretch very far unless it was targeted specifically at early-stage trials.

A more controversial aspect of the strategy is the plan to make GP patient records available to private firms. The data would be anonymised, but the BMA has expressed concern that “large commercial companies” may be able to “search through records and identify patients in order to contact them”.

The Government’s new strategy for life sciences is closely allied to its plans for increased private sector involvement in the NHS – but also, for the first time, includes steps to improve the climate for life science SMEs and for medical innovation in the UK.

Glyn Edwards has been appointed the interim Chief Executive of The BioIndustry Association (BIA).

He succeeds Nigel Gaymond in the role after serving as CEO of Antisoma from 1998-2011 and prior to that in  a variety of positions in the biotech and healthcare industries.

Tim Edwards, BIA Chairman, says he is “delighted” at the appointment of the new Chief Executive. “Glyn's experience as a biotech CEO and a former BIA Board member will be valuable as we continue to develop the BIA,” he said.

“I am looking forward to working with BIA members, its Board and staff to help ensure that the UK's life sciences sector is recognised not only here in the UK but also globally,” said Glyn Edwards (pictured).

The Chief Executive, who will start his role immediately, has previously served on the BIA board.