Biotechnology to the United Kingdom

(Last updated: 19 Jul 2007)

Trends and opportunities

The market

The United Kingdom’s biotechnology industry is the largest in Europe, and has the attributes of a mature sector. Government support for the sector, R&D and venture capital funding are all available.

The British Government has supported biotechnology since the 1990s with funding and collaboration programs. Programs include BioWise a mentoring program for biotechnology companies and a research collaboration program.

Biotechnology clusters in the UK includes Cambridge, Oxford, London, Central Scotland, South East England and North West England. These clusters are supported and encouraged by regional development organisations and academic institutions.

There are many Australian-British biotechnology collaborations. Active companies include:

• Cerylid
• Stem Cell Sciences
• IDT
• Amrad
• Australian Cancer Technology
• Anadis
• Sivida
• Peptech
• Monash University

In Europe and Australia, R&D collaborations dominate the biotechnology industry. Compare this to the USA, where commercial deals involving late-stage products are the preferred strategy.

Opportunities

Australia has a strong international reputation for its quality of science and as a source of intellectual capital. Many European pharmas look favourably on Australia for contract R&D because of the quality of research and the lower cost base.

The UK biotechnology industry offers Australian companies opportunities for forming alliances and export markets because:

• The biotechnology market offers a critical mass and well established international networks.
• The market is less competitive than the USA.
• The market is open for international collaborations and offers easy access to its biotechnology industry through government supported biotechnology clusters.
• Access to funding from public and private funds.
• Investors remain optimistic about the fundamentals and longer-term prospects of the industry.

Because of the size and scope of the biotechnology industry, there are many large and small opportunities in many different sectors. However, some of the key opportunities are: human health, environmental remediation and agricultural biotechnology.

Tariffs, regulations and customs

All European Union (EU) countries are covered by a harmonised trade system. Common Customs Tariff (CCT) is applicable to goods from non-EU countries, including Australia.  Goods travelling between EU member states are free of customs duty.

Value Added Tax is payable at varying levels in each member state.

Import licenses may be required and you may need an export certificate from Australia.

Certain products will need to comply with pan-European legislation for medical devices, medicines, foods and ingredients. There are also local variations in legislation, packaging and labelling that need careful consideration before shipping samples or final products.

Industry standards

Biotechnology cuts across many legislative areas, and there is no single pan-European law covering the sector. Laws and voluntary standards vary from country to country and you should seek advice from Austrade or your local partner.

Marketing your products and services

Market entry

The main methods of market entry for biotechnology companies looking at the United Kingdom are:

• Supply of products or raw materials
• Collaboration with European company/institution
• Investment into Europe
• Running clinical trials in Europe

Supplying a European company

The traditional market entry strategy, and a good option to consider for companies with products that can be easily combined by European end-users. Pharmaceutical companies are likely to be a major end-user. You can develop relationships with these companies via:

• Licensing
• Sales
• Contracting
• R&D services

Collaboration

Working with European biotechnology/pharma companies and research institutions, often in the development phase. These relationships can take the form of:

• Technology transfers
• In-licensing and out-licensing
• Co-development (platform development through to product pipeline)
• Co-marketing
• Investment

In order to gain access to venture capital funding or research collaborations it may be necessary to invest in Europe. This could take the form of setting up a branch of your company overseas, or acquiring a suitable European company.

Clinical trials

It can be advantageous to run clinical trials in Europe, rather than in the USA or Australia. Some of the benefits are:

• The Mutual Recognition Procedure means that trials conducted in one European Union (EU) country are approved in the other EU member states.
• In many European countries trials are cheaper to run than in the USA.
• Working with European scientists on a trial builds your credibility.
• As the trial process can be quicker in Europe, you can start generating revenue faster.
• Media coverage is easier to generate if you are in the market.
• A collaboration partner can help the approvals process with the European authorities.

The European Agency for the Evaluation of Medicinal Products can provide more information on clinical trials in Europe.

Because of the need to protect intellectual capital, there is little e-commerce activity in the biotechnology sector. However, there are some networking and partner search sites, such as:

• East of England Biotechnology Network (ERBI)
• London Biotechnology Network
• Zurich virtual biotech community

Links and industry contacts

Biotechnology–related resources

Agriculture and Environment Biotechnology Commission – www.aebc.gov.uk
Bioguide, UK biotech regulations – www.dti.gov.uk/bioguide
BioIndustry Association – www.bioindustry.org
Biotech Scotland – www.sebiotech.org.uk
Biotechnology & Biological Sciences Research Council – www.bbsrc.ac.uk
Biotechnology Exploitation Platform e-community – www.biotecplatform.gov.uk
Biotechnology Mentoring & Incubator Initiative – www.dti.gov.uk/bmi
BioWise – www.biowise.org.uk
East of England Biotechnology Network – www.erbi.co.uk
European Agency for the evaluation of Medicinal Products - www.emea.eu.int
European Federation of Biotechnology - www.efbweb.org
Food for our Future (UK GMO debate) – www.foodfuture.org.uk
Link collaborative research program - www.ost.gov.uk/link
London Biotechnology Network – www.londonbiotechnology.co.uk
UK Centre for Biotechnology Education – www.ncbe.reading.ac.uk
UK Government biotechnology support – www.dti.gov.uk/sectors_biotechnology.html