GSK selects Ulverston for biopharma manufacturing hub
pharmafile | March 22, 2012 | News story | Manufacturing and Production, Research and Development, Sales and Marketing | Cameron, GSK, Ulverston, manufacturing
GlaxoSmithKline has announced the long-awaited decision on the location of its biopharmaceutical plant in the UK, with Ulverston in Cumbria selected as the winning site.
GSK promised to invest £500 million ($790m) in its UK manufacturing network in 2010 after the government first introduced ‘patent box’ plans to lower the tax rate on profits from products based on UK-owned intellectual property. Those plans were confirmed in yesterday’s budget.
The company has now come good on its commitment, confirming that it will spend the £500m on manufacturing sites across the UK, creating up to 1,000 new jobs and providing knock-on benefits in the construction and service industries.
Moreover, the pharma company said it was considering options for “further significant investment in UK manufacturing”, according to chief executive Andrew Witty.
The news is a timely boost for the UK pharmaceutical sector in the wake of some major facility closures, such as Sanofi’s announcement last week that it will shut down its production plant in Fawdon and Pfizer’s decision to exit from its R&D campus in Sandwich last year.
The new $350 million biopharma facility at Ulverston will be the first to be built by GSK in the UK for 40 years, according to the firm, which said it plans to start construction in 2014/15. Once construction starts, it is likely to take at least six years before the plant is fully operational.
Montrose and Irvine in Scotland and Barnard Castle in Northeast England had also been considered as sites for the plant. While missing out on the main prize, the Montrose and Irvine plants will benefit from receiving £100m out of the total investment package, said GSK.
Glyn Edwards, interim chief executive of the UK BioIndustry Association, said the investment “recognises that the UK is one of the world’s leading locations for life sciences discovery, development and manufacturing, and that recent changes to the corporate tax system make the UK an increasingly attractive place for investment.”
UK prime minister David Cameron also welcomed the news, saying: “We have a world class life sciences industry, and I am determined not just to keep it here in the UK but significantly increase it too.”
“We cannot be complacent, the industry is changing, and we must change with it,” added Cameron.
Stephen Whitehead, chief executive of the ABPI, said: “I am delighted that the pharmaceutical industry is continuing to invest significant resources in the UK.
“The ongoing support from government has been crucial for our industry and specific measures like the patent box have been instrumental in attracting new investment.
“Now we must build on this and ensure the long term success of our industry by creating a strong commercial environment where pricing rewards innovation and the uptake of new innovative medicines is ensured.”
Phil Taylor
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