Insider Media Limited

There are vast, untapped opportunities to start up and develop life science companies across the UK, according to a new report. The UK Life Science Start-up Report 2010, published this week by Mobius Life Sciences Fund and BioCity Nottingham, helps to identify these opportunities and calls for any public investment to be better targeted at four UK "hot spots". It also highlights opportunities for investors in the sector across the UK.

It is the first comprehensive study of early stage life science firms and specifically looks at the levels of university spin-out activity, the geographic spread of early-stage and subsequent investments, the role of bio-business incubators and the likely opportunities presented by the re-structuring of the global pharmaceutical industry.

The reports findings include:

- One-third of the life science start ups launched between 2005 and 2009 were generated by universities.

- Nearly half of the start-ups formed in the last five years are based in a bio-incubator or bio-park.

- A total of 63 per cent of companies that received investment were based in bioincubators and these companies gained over twice the funds as those not in bioincubators.

- Almost 80 per cent of life science start up activity is concentrated in just four areas in the UK.

“There is no getting away from the fact that this country needs to invest if it wants a successful bioscience industry, but historically the jam has been spread too thinly,” says report author Glenn Crocker.

“It’s not simply about how many start ups are created; it’s about how well university research is turned into business opportunities and the start in life that the companies achieve.

“By focusing greater effort on technology transfer and providing a powerful spinout structure for our seedling ventures we are likely to nurture more, successful firms.

"Moreover, given the likely reduction in public funds, what remains should be concentrated in the four ‘hot-spot’ regions of Edinburgh/Glasgow; M1 Corridor of Leeds, Sheffield and Nottingham; Manchester/Liverpool and London/Oxford/Cambridge so more can be achieved from targeted government intervention. These areas also contain almost all of the UK’s bioscience business incubators, a network ideally placed to help with large pharma outsourcing, as well as delivering government-funded support.”

Lucy Marcus, who chairs the Mobius Life Science Fund and is a BioCity Board member, brings further corporate investment and venture funding knowledge to the research.

She said: “Investment in life sciences is essential and in times of ever decreasing funding, knowing where investment can be the most effective and have the greatest impact is essential. This report will help bring some clarity to investment choices, both with public and private money.”