Twenty-two of the UK's biotech leaders--including Sir Christopher Evans--are petitioning legislators for two £500 million funds to keep the country's biotech sector on its feet. UK's biotech sector has been hit particularly hard by the ongoing financial crisis. A string of unsuccessful clinical trials, along with the generally bleak market, has made raising funds extremely difficult for developers.
In order to rescue the industry, biotech execs have petitioned Prime Minister Gordon Brown and Business Secretary Peter Mandelson to create two £500 million funds. The first would be funded by the government, and the second by venture capitalists and other investors. One fund would help consolidate smaller drug developers while the other would provide cash for larger biotechs to make key acquisitions.
"If the Government does not do something soon a host of companies will fail. [Next year] will be a critical year to shape the industry for the future. If there is a potential for conflict of interest, people can leave the room," noted Sir Christopher Evans. He estimates that up to a quarter of the UK's 400 biotech could go under by the end of 2009 without an injection of funds. Biotech companies employ 15,000 people in the UK.
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