Pharma continues to invest in UK research and development
pharmafile | October 24, 2005 | News story | Sales and Marketing | Pfizer, R&D
UK pharma and biotech companies increased R&D investment by 4% in the last year, according to the latest government figures.
The comprehensive R&D Scoreboard survey by the Department of Trade and Industry shows the pharma and biotech sectors maintaining their position as the UK’s biggest R&D investors, with around £6.75 billion spent last year.
The sector accounts for nearly 40% of the country’s total R&D investment – far ahead of second placed Aerospace and Defence (12.3%) and Oil and Gas (3.4%).
In compiling the Scoreboard, the DTI looked at the top 750 UK and 1,000 global companies in terms of R&D investment during a 12-month period between 2004 and 2005.
On the whole, the figures make reassuring reading for the government and go some way to countering fears that animal rights activity and growing competition from low cost markets have undermined UK investment.
Unsurprisingly, the UK’s home-grown pharma companies GlaxoSmithKline and AstraZeneca are by far the biggest investors, each with several R&D sites in the country.
GlaxoSmithKline spent £2.84 billion, up 2%, while spending at Anglo-Swedish AstraZeneca was up 10% to £1.98 billion.
In third place, Pfizer UK spent £597 million at its single R&D site in Sandwich, Kent. This was a rise of 8% over the previous year, but a 36% increase over a four-year period.
Eli Lilly UK increased its spending by 22% to £147 million, representing a 46% rise over four years, maintaining its position as UK pharma’s fourth biggest R&D investor.
Between them the four companies accounted for a massive 83% of total R&D spending in the UK.
Norman Price, a DTI industrialist who helped compile the R&D Scoreboard, said the domination by the big-hitters was good news for the whole industry.
“All pharma companies should see this as a positive. The four biggest companies are providing a platform for themselves and spending highly in order to find the new drugs of tomorrow. They also have the funds to support smaller companies which want to bring new drugs to market.”
Leading the UK biotech charge is Celltech (£106 million) which increased its R&D investment by over 10% from last year and Cambridge Antibody Technology (£44 million).
Pfizer and Roche, in particular, have a high R&D intensity in the UK – that is, a high level of R&D as a percentage of sales generated in the territory.
Senior industrialists at the DTI said Pfizer’s decision to invest demonstrated its faith in the UK as a good R&D environment.
Price predicted that pharma and biotech would retain their lead in terms of R&D investment for at least another five years, but would face increased competition from IT Software and Hardware in the future.
On a global level, the pharma and biotech sector is the third largest R&D spender with just over 18% of the market behind Automotive & Parts and IT Hardware. Pharmaceuticals has the highest R&D as a percentage of sales (15%) but also the highest operating profit as a percentage of sales, 19.5%.
Pfizer, GlaxoSmithKline, Sanofi-Aventis and Johnson & Johnson account for around 31% of the R&D global sector investment.
The R&D Scoreboard, now in its fifteenth year, is the world’s only comprehensive league table of R&D active companies and according to the DTI will be used by companies and their shareholders, investors and policymakers.
Related Content
EC approves Pfizer’s Emblaveo for multidrug-resistant infection treatment
Pfizer has announced that the European Commission (EC) has granted marketing authorisation for Emblaveo (aztreonam-avibactam) …
Pfizer’s Velsipity approved by EC for ulcerative colitis treatment
Pfizer has announced that the European Commission (EC) has granted marketing authorisation for Velsipity (etrasimod) …
EC approves Pfizer’s Elrexfio for relapsed and refractory multiple myeloma
Pfizer has announced that the European Commission (EC) has granted conditional marketing authorisation for Elrexfio …
