GSK to invest in UK manufacturing thanks to ‘patent box’ concept
pharmafile | December 11, 2009 | News story | Manufacturing and Production | GSK, biopharmaceutical
GlaxoSmithKline has welcomed plans for a new UK government initiative the ‘patent box’ aimed at stimulating investment in the UK.
The ‘patent box’, announced in the Chancellor’s Pre-Budget Report, will work by applying a reduced rate of corporation tax of 10% to income from patents from April 2013.
GSK says it believes the new system will significantly improve the UK’s international competitiveness and encourage long-term inward investment from companies seeking to build their future high technologies and manufacturing capability.
Andrew Witty, chief executive of GlaxoSmithKline said: “The patent box is exactly the sort of active, long-term and creative support that we need from the Government to ensure that the UK remains an attractive place for highly skilled sectors such as pharmaceuticals. For GSK, assuming the new regime will apply to patents currently under development it will have the immediate impact of making the UK a priority area for future investments, particularly in manufacturing.”
The introduction of the patent box will enable GSK to increase its existing investment in the UK. Near-term likely investments include building a state-of-the-art biopharmaceutical manufacturing plant in the UK. Biopharmaceuticals are medicines that are made from biotechnology (biological systems or living organisms which are modified for medical purposes). GSK currently has six biopharmaceuticals in late-stage development for treatment of diseases such as lupus and diabetes, representing 15% of GSK’s clinical pipeline.
The company is also committing new investment to its facility at Ware, Hertfordshire, to manufacture next generation respiratory medicines. GSK is a long-standing leader in respiratory diseases, such as asthma and COPD.
In combination, these new investments in UK manufacturing will amount to approximately £500 million and will result in new jobs in UK manufacturing. GSK says the introduction of the ‘patent box’ will also benefit small businesses who supply services and facilities to sectors specialising in research and development. For example, the pharma company works with more than 20,000 suppliers in the UK.
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