Big boost for UK pharma this week as GSK announced plans to invest Â£500million in the UK. I was delighted to hear the what the investment will mean to the UK which includes a new Â£350million Cumbria based factory, further growth of 2 existing Scottish sites and an estimated 1000 new jobs.
The announcement stemmed from the improving environment for innovation in the UK. The budget's "patent box" proved a winning formula for GSK, which will see lower corporation tax rates on profits generated from R&D as UK based IP. I think this is a light at the end of the tunnel for UK pharma following the devastating departure of many of Pfizer's operations last year. Andrew Witty commented that the patent box “has transformed the way in which we view the UK as a location for new investments, ensuring that the medicines of the future will not only be discovered, but can also continue to be made here in Britain”.
This all sounds great but will the move from GSK encourage other organisations to invest more of their money and operations in the UK aswell?