FOR IMMEDIATE RELEASE

29 November 2010

Growth review highlights life sciences as a key sector; confirms introduction of

patent box and reviews R&D tax credits

The government’s growth review “The path to strong, sustainable and balanced growth",
launched today by the Chancellor of the Exchequer, George Osborne, is a promising
road map to enable the UK to build its vibrant life sciences sector.

Of significance to the life sciences sector are government plans to introduce a more
competitive tax system including:
• The introduction of a “Patent Box” - a preferential tax regime of 10% for profits
arising from patents which will encourage the commercialisation of discoveries in
the UK
• A review of R&D tax credits to reflect proposals of the Dyson review

The growth review responds to some of the key principles highlighted in a joint paper
submitted by the Association of British Pharmaceutical Industry (ABPI), Association of
British Healthcare Industries (ABHI), Association of Medical Research Charities (AMRC),
BioIndustry Association (BIA), British In Vitro Diagnostic Association (BIVDA) and
Cancer Research UK (CRUK), which were:
• People – to focus on skills and training for the scientists of the future to include
support for greater researcher mobility between industry and academia
• Access to finance – to ensure provisions are in place for adequate funding of
business and for support of basic science
• Environment – to include proposals to build on the collaborations and
partnerships already in place to create the ideal research landscape
• Innovation – to improve the uptake and procurement of world leading innovative
products and streamline the regulation that affects the sector to speed treatments
reaching the people who need them.
• Long-term growth – to recognise the need for a longer term strategy for
investment in science strategy to create a sense of direction for the life sciences
sector

The industry and charity organisations look forward to working together with government
and the National Health Service to deliver on these goals and impact on the health and
wellbeing of people across the UK.

Richard Barker, Director General of the ABPI, said:

“With Government’s welcome announcement of the Patent Box, enabling UK intellectual
property to generate UK jobs, and their clear recognition of the role of the NHS in
supporting the sector, the stage is set for a resurgence in UK life sciences.”

Peter Ellingworth, Chief Executive of the ABHI, said:

“The UK has a large number of small businesses operating in the life sciences sector, it
is important that these companies are given the support they need to grow into medium
and large businesses. We welcome the measures outlined in the growth review,
especially those around procurement. A simplified and more transparent procurement
system should open up the NHS to small businesses and improve the uptake of
innovative technologies.”

Simon Denegri, Chief Executive of the AMRC, said:

“The Government's statement on growth today is an important step towards ensuring
surety for the life sciences sector. Its proposals will help maintain the UK's attractiveness
as a leading centre for medical and health research. Its focus on sustaining a culture of
collaboration and innovation is vital if charity-funded research is to make a difference to
people's lives with knock-on benefits for public expenditure and economic growth."

Nigel Gaymond, Chief Executive of the BIA, said:

“The introduction of the Patent Box will result in a significant change of attitude towards
the UK as a location for R&D and manufacturing. This will ultimately stimulate interest
and investment in the UK’s bioscience companies. We also welcome the opportunity to
maximise the opportunities offered by R&D tax credits which are already a vital incentive
for smaller businesses.”

Doris-Ann Williams, Director General of BIVDA, said:

“This review is a welcome demonstration of the Government’s commitment to realising
the value that can be brought to the UK economy by life sciences, and a recognition of
the key collaborative role the NHS will play in that.”

ENDS

For further information, please contact

• ABHI – Daniel Jones, Manager External Communications – 020 7960 4375 or

daniel.jones@abhi.org.uk

• ABPI - Edel McCaffrey, Media Affairs - 020 7747 1410 or

emccaffrey@abpi.org.uk

• AMRC – Becky Purvis, Policy and Public Affairs Manager – 020 7685 2626 -
07738 014500 or b.purvis@amrc.org.uk

• BIA – Robert Winder, Communications Manager – 020 7565 7193 - 07825 942
934 or rwinder@bioindustry.org

• BIVDA – Doris-Ann Williams, Director General – 020 7957 4633 or doris-

ann@bivda.co.uk
Notes to editors

HM Treasury growth review

http://www.hm-treasury.gov.uk/ukecon_growth_index.htm

Association of British Healthcare Industries

The Association of British Healthcare Industries (ABHI) is the industry association for the
UK medical technology sector. Our aim is to promote the rapid adoption of medical
technologies to ensure optimum patient outcomes throughout the UK and in key global
markets. Members include manufacturers of medical devices, equipment and
consumables and other suppliers to the medical community. www.abhi.org.uk

The Association of the British Pharmaceutical Industry

The Association of the British Pharmaceutical Industry (ABPI) is the trade association for
the research-based pharmaceutical industry in the UK, representing companies both
small and large. Our member companies research, develop, manufacture and supply
more than 80 per cent of the branded medicines prescribed through the National Health
Service (NHS). For further information visit: www.abpi.org.uk

Association of Medical Research Charities

The Association of Medical Research Charities is a membership organisation of the
leading medical and health research charities in the UK. In 2009-10, our 124 members
invested over £1 billion into medical research in the UK. www.amrc.org.uk

BioIndustry Association
Established in 1989, the BIA (BioIndustry Association) exists to encourage and promote
a financially sound and thriving bioscience sector within the UK economy and
concentrates its efforts on emerging enterprise and the related interests of companies
with whom such enterprise trades.

With over 250 members, the BIA supports a wide range of sectors, majoring on the
human health benefits of the technology and represents the interests of these innovative
companies to a broad section of stakeholders from patient groups to politicians,
advancing its members interests both within the UK and internationally to create a
healthy UK bioscience sector which benefits society. For further information, please go
to: www.bioindustry.org

British In Vitro Diagnostic Association

The British In Vitro Diagnostics Association (BIVDA) works to raise awareness of the
clinical and cost utility of in vitro diagnostics in the provision of effective healthcare in the
UK. The membership of BIVDA currently represents over 95% of the industry with more
than 100 member companies. Membership includes UK subsidiaries of multinationals,
UK SME's and a number of start-up companies. BIVDA members supply diagnostic tools
to the NHS for a range of disease areas, including diabetes and cancer.
www.bivda.co.uk