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Biotechnology - United Kingdom. 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. Opportunities The UK biotechnology industry offers foreign companies opportunities for forming alliances and export markets because:

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Page 1: Biotechnology - United Kingdom

Biotechnology - United Kingdom.

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.

Opportunities

The UK biotechnology industry offers foreign 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.

Page 2: Biotechnology - United Kingdom

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. 

Characteristics

A snapshot of the UK biotech industry (2003):

Over 450 biotech companies (behind Germany)

22,400 people employed – first in Europe

€ 5,041 million Revenue – first in Europe

€ 1,757 million R&D spend

€ 247 million Venture Capital

second highest number of biotech start-ups (behind Germany)

70 per cent of drugs in the European pipeline originate from the UK

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.  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.

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

Page 3: Biotechnology - United Kingdom

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. 

Tariff

The UK is part of the harmonised trade system of the European Union and gives

preference to associate members of the Union, developing countries and European Free

Trade Association (EFTA) members. Most duties are ad valorem (%), based on the GATT

Valuation Code (approximately CIF value (Incoterms 2000)). Common External Tariff

(CET) is applicable to other countries.

Before shipping any goods to the UK, you should obtain a written customs duty ruling from

the customs service in the destination country. These rulings are called Binding Tariff

Information (BTI).  Getting a BTI is free and will prevent any conflict over customs or

excise duty.

HM Customs & Excise (VAT)Alexander House 21 Victoria Avenue Southend-on-Sea SS99 1AA Tel: 44 (0) 1702 366 077 Fax: 44 (0) 1702 367 342

HM Customs & Excise (International Development)7th Floor, New King’s Beam House22 Upper GroundLondon, SE1 9PJTel: 44 (0 20) 7620 1313

Marketing your products and services

Market entry

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

Kingdom are:

Page 4: Biotechnology - United Kingdom

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

Page 5: Biotechnology - United Kingdom

It can be advantageous to run clinical trials in Europe, rather than in the USA.  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

Bio Now

Oxfordshire Bio science Network

Scottish Enterprise- Life Science

BioScience Yorkshire

Links and industry contacts

Biotechnology–related resources

Page 6: Biotechnology - United Kingdom

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

Bio UK – http://plus.i-bio.gov.uk/ibioatlas/

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

Europe (general)

The European Agency for the evaluation of Medicinal Products - www.emea.eu.int

European Federation of Biotechnology - www.efbweb.org

(Last updated : February 2006)