Big Pharma gets a big lift with GSK investment

GlaxoSmithKline's announcement it is investing £500m in UK manufacturing gives 'Big Pharma' a huge boost, said the Chief Executive of the Royal Society of Chemistry.  

Dr Robert Parker said news that the biopharmaceutical company will build its first new UK factory in 40 years, with the possible creation of up to 1,000 jobs, comes after months of grim news for the industry.

"Big Pharma has endured a real rollercoaster ride in the last two years, with job losses at various companies. But this announcement by GSK is fantastic news and hopefully a sign of bigger and better things to come from the industry.

"Chemistry plays a pivotal role in the life sciences sector and the RSC has consistently warned of the dangers for the British economy if the life sciences sector continued to haemorrhage jobs - so the creation of up to 1,000 more, many of whom will be chemical scientists, is brilliant."

GSK, which was trending on Twitter this morning as a result of the announcement, said it was motivated by yesterday's Budget announcement that a Patent Box will be introduced by the government in April 2013. This will apply a reduced 10 per cent rate of corporation tax for profits attributed to patents and similar types of intellectual property.

The RSC has consistently asserted said the Patent Box, first announced by the previous government in its pre-Budget report of 2009, is an excellent example of how joint working across government and industry can provide measures to improve the UK business environment for life sciences companies.