GSK has given a massive boost to the UK life sciences industry with an announcement on the back of the Budget that it will spent £500m on a new manufacturing plant and create 1,000 jobs in the UK. Andrew Witty, the GSK chief executive, says that the Chancellor’s confirmation of the patent box initiative has made the UK a great place for innovative pharma businesses to locate. It has changed the big pharma company’s views on the UK. The patent box will mean that profits derived from patents will be subject to a much reduced tax rate of 10%. The aim is to encourage innovative businesses to locate in the UK.
GSK’s new plant will be located in Cumbria. It will not be up and running until 2020 as it will take some time to build. But it is a massive shot in the arm for the UK’s life sciences industry against a backdrop over concerns for the industry amidst the patent cliff and other challenges facing the industry. Last year, Pfizer announced the closure of its research and development facility in Kent with a loss of over 1,000 skilled jobs. AstraZeneca recently announced that it was cutting over 10% of its global staff.
Eisai announced a few days ago that it will be building new jobs at its Hatfield base with a centre of excellence for its highly skilled European Union workers – the European Knowledge Centre.
Paul Gershlick, Partner and Head of Pharmaceuticals and Life Sciences at Matthew Arnold & Baldwin LLP says, “Hopefully, GSK and Eisai’s recent announcements will set a new trend that will see the UK’s pharma and life sciences sector fight back against its recent challenges and re-invigorate the country’s involvement in this industry.”