Astellas Pharma Europe has chosen an English site to house its new UK and European headquarters.

Offices in Chertsey, Surrey, have been picked by the Japanese pharmaceutical company, which has called its decision an act of faith in the British economy.

Ken Jones (pictured), President and Chief Executive of Astellas Pharma Europe, said the site shows “the confidence” the company has in the UK and it “marks a new chapter” for the organisation.

The firm was previously based in smaller offices in Staines, which employed several hundred people.

The move comes at a time when Astellas said it is now actively employing more staff and hopes to fill the site within the next five years. The company also revealed it is planning to launch ten new products in Europe by 2017.

“Astellas has long been out-performing the market and whilst bigger pharma firms are seeing their revenue shrink from patent expiries, we are seeing ours grow with new products and new areas of interest,” said Ken Jones.

“The UK is in tough times much like the rest of Europe, but we are working hard to get through adversity via innovation.”

The new HQ will be focused on sales and marketing for the company’s key disease areas in urology and transplantation medicines, and its future focus on oncology.

The UK economy has shown 1% growth in the last quarter after nine months of recession, but analysts are unsure whether this represents a true recovery.

The slight upturn in gross domestic product (GDP) falls far short of a return to the output levels seen before the financial crisis of 2008.

The Olympics are thought to have given the UK economy a temporary boost alongside the automatic ‘dead cat bounce’ following a steep decline.

The term ‘dead cat bounce’ comes from a saying in the financial sector: Even a dead cat will bounce if it you drop it far enough.

According to the Office for National Statistics, the UK’s GDP increased by 1% between July and September after falling by 1.1% in the previous three months.

However, the ONS noted, this included a 0.2% boost due to Olympic ticket sales, with further benefits from hotel and restaurant activity and temporary jobs.

In addition, the preceding three months had been unexpectedly difficult due to bad weather and the Jubilee public holiday.

The emphasis placed on these minor factors underline the absence of major dynamic change in the UK economy.

“While the news is positive, the estimate must be put in context,” said David Kern, Chief Economist at the British Chambers of Commerce. “Compared to a year earlier, the figures show that the economy is stagnant.”

Richard Halstead, Midlands Region Director at EEF (a manufacturers’ organisation), likewise warned: “With survey data, particularly in our major markets, pointing to difficult trading conditions in recent months, it’s unlikely this pace of expansion will be maintained into the New Year.”

In the last quarter, the production sector grew by 1.1% – an encouraging figure for the pharmaceutical industry.

The Government needs to do more to support life sciences in the UK and create an environment where the industry can flourish, a new survey has found.

RSA’s The UK Life Sciences Leaders’ Survey 2011 revealed worries over the NHS reforms, medicine pricing and reimbursement, employment issues and the cost of research amongst its leaders.

Nick Stephens, CEO of RSA, says the Government “urgently needs to do more to ensure that education, regulation, access to medicines and the NHS research base align to support the industry’s continued contribution to the UK economy”.

The report is the second annual survey of industry bosses. Last year the general feeling was of optimism with leaders believing the recently elected coalition Government would improve the business environment.

But twelve months later the mood has changed with results finding leaders claim the UK is not competing effectively globally, creating opportunities for early phase/smaller companies or making the most of its unique selling points: the NHS and skills in innovation and discovery.

Leaders also raised concerns about the increasing cost of working in the UK, the implication of R&D as a result of the NHS reforms, the regulatory burden on operations and the process from development to market. They also advised that fiscal and tax incentives should be given to SMEs to help their growth and the UK compete globally.

Worries were also raised about the introduction of value-based pricing. However, in contrast, health technology assessments were broadly welcomed as a means of enhancing value and meeting therapeutic requirements, the report found.

During the tough economic environment, the survey found that leaders would focus on innovation, creating flexible organisations and processes, and refocusing research and development to weather the current storm.

In a perfect world, leaders revealed they would investing in R&D and make the healthcare sector, regulatory and commercial environment work closer together to achieve better outcomes for patients and the pharmaceutical industry.

Stephen Whitehead, CEO, ABPI, says the survey shows more support is needed for biopharmaceutical companies in the ever-changing NHS. “There is much that the Government has done to support the industry, particularly through the Growth Review and the Office for Life Sciences,” he said. “But we need to build on this as part of a continuing relationship with NHS and Government to explore how unnecessary bureaucracy can be eliminated from the healthcare system so that new treatments can reach patients as quickly as possible.”