UK group expects billion-pound biotech fund

The head of a major British biotech industry group says that the government is likely to unveil a billion-pound "fund of funds" designed to greatly increase the amount of venture capital flowing to developers.

Clive Dix, who heads the BioIndustry Association in the UK, says he expects the government to make its announcement tomorrow. "The things that we've asked for that we know are being worked on are this innovation fund in some form," Dix said.

The association has proposed that the innovation fund be used to match the investments of private venture capital groups that back start-up and early-stage research companies. And Dix cited recent reports about Essex Woodlands, a venture group that recently raised a $900 million biotech fund, as a prime example of the kind of investment money that could be tapped in the UK.

Dix is also hopeful that the British government will establish special tax privileges for technology developed in the country and a separate initiative aimed at encouraging pharma companies to invest in developers.

- read the report from Reuters

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