Government proposals secure GSK investment in manufacturing
1 min read
GlaxoSmithKline (GSK), one of the world's leading research-based pharmaceutical and healthcare companies, has welcomed yesterday's 'patent box' proposals from the government to encourage investment in R&D and related manufacturing in the UK by introducing a lower rate of corporation tax on profits generated from UK-owned intellectual property.
On the back of the welcome, GSK said implementation of the proposals would secure new investment in the manufacture of GSK's next generation high-technology respiratory inhalation device for asthma and chronic obstructive pulmonary disease (COPD) at Ware in Hertfordshire and would ensure that the UK is the location for GSK's next biopharmaceutical manufacturing plant.
In 2011 the company will conduct a feasibility study on the location of this facility. Current GSK manufacturing sites in Montrose in Scotland, and Ulverston and Barnard Castle in the North of England will be considered first. Construction of major biopharmaceutical manufacturing sites usually takes seven years or more from conception to the start of commercial production.
Commenting on the proposals, GSK CEO Andrew Witty said: "The introduction of the patent box is a bold and forward-thinking measure which builds on the UK's strength as a global centre of excellence for science and R&D. In the current challenging and uncertain economic environment, this is a welcome step by the Government to improve the attractiveness of the UK as a place for the private sector to locate and invest.
"When implemented, the patent box has the potential to transform the way in which the UK is viewed by companies such as GSK as a location for new investments in high added-value R&D and manufacturing.
"For too long, while great inventions and discoveries have been made in this country, downstream economic activity in development and manufacturing, and associated employment, have been attracted to other countries which have more favourable corporation tax regimes. In one stroke, the introduction of the UK patent box will help to change this dynamic.
"For GSK, the successful introduction of the patent box will enable us to increase investment in communities where we have existing facilities by scaling up current manufacturing and building a significant new plant. With a more IP-friendly environment, we also plan to launch a new UK venture capital fund and invest in new technologies such as green chemistry. In total, these new investments in the UK would be worth more than £500 million."
