Long-term funding for Biomedical Catalyst needed to sustain bio-tech industry momentum

Life sciences transactions lawyer Allistair Booth of Pinsent Masons, the law firm behind Out-Law.com, called on the Government to commit a second pot of funds to be allocated under the programme that is at least equal to the £180 million it set aside for the Biomedical Catalyst in 2011.

The Chancellor is set to announce the results of the Government's 2013 Spending Review at the end of June, but Booth said it would be "counter-productive" if cuts to the budget for the Department for Business, Innovation and Skills (BIS) meant the Biomedical Catalyst scheme was downsized.

The Biomedical Catalyst is a funding programme that helps medical scientists bridge a funding gap known as the "valley of death" in order to further develop their research. The term refers to the difficulties some early stage biotech and med-tech companies have in obtaining enough finance to develop their research and development programmes to a stage where they can attract meaningful amounts of venture capital interest and/or license those programmes to a third party.

The Biomedical Catalyst was established by the Government in 2011 and so far there has been approximately £100m from the overall £180m budget for the scheme set aside for companies during two rounds of funding. “In an announcement earlier this week, the Technology Strategy Board, which, together with the Medical Research Council, manages the provision of Biomedical Catalyst funds, said that it planned to allocate £30m to researchers through the programme in 2013-14.”

"The Biomedical Catalyst has been the singularly most successful method of funding for the bio-tech sector that the Government has ever supported," Allistair Booth said. "The funding has had a transformative effect on each of the companies that have been allocated funds to-date. However, there are a raft of other highly worthwhile companies coming through that could also benefit. It is therefore essential that the Government replenishes the current £180m funding pot once it runs out to the same sort of magnitude."

Booth said that the benefits that can be accrued from a growing and revitalised bio-tech sector in the UK should convince the Government to give its continued backing to the Biomedical Catalyst.

"Providing £180m again would make another significant and positive difference to the sector," Booth said. "That level of funding could allow the bio-tech industry to take another substantial step forward and by helping companies to overcome the 'valley of death' the Government can assist in  increasing the value of UK-developed technology and keeping that technology and that value in the UK. That provides significant benefits to the industry, to jobs and the economy," Booth added.

Earlier this week a number of MPs, Peers and life sciences industry stakeholders signed a letter published in The Times that called on the Government to put in place long-term funding for research and development in science.

"Long-term commitment from the Government is needed to maintain confidence and to leverage further investment from charities and industry," the letter said. "Continued government investment in R&D now will lead to life-changing advances that will benefit people’s health and wellbeing and create new industries to drive economic growth."

BioIndustry Association chief executive Steve Bates separately called on the Government to "re-fill the Biomedical Catalyst to enable further rounds [of funding] to meet demand". In a statement he said the scheme "has proven to be the government's most successful bio-tech initiative, is delivering jobs and growth and now needs to be secured for the future".