Life science sector continues to grow despite tough times

Published on Monday 9 March 2009 19:39

THE demand for improved healthcare and the development of new medicines is central to the quality of life and the health of our society.

As one of the leading European locations for life sciences research and development, Scotland has a real opportunity to contribute to medical innovations.

With more than 620 organisations, employing in excess of 31,000 people, Scotland's life sciences sector also provides a wealth of long-term benefits for the Scottish economy.

Currently, life sciences adds more than 3 billion to the country's economy, but it is the growth potential of the industry that gives it a prominent role in the government's economic strategy and makes it one of Scottish Enterprise's priority areas.

The Scottish life sciences community's priorities remain centred on the five key elements: people, technology, capital, infrastructure and collaboration.

Last month, more than 750 people from the international life sciences community gathered at the annual Scottish Enterprise Life Sciences dinner and awards ceremony in Edinburgh to celebrate continuing growth and innovation.

In the past year we have continued to see the achievement of major milestones in a number of key projects and also new investment from overseas firms looking to take advantage of Scottish capabilities.

Recently, Schering-Plough announced a substantial investment in its early drug discovery technologies at its facility at Newhouse in Lanarkshire. Controlled Therapeutics is investing around 4 million in upgrading its manufacturing capabilities at its facility in East Kilbride; while the Irish firm Icon, a global provider of outsourced development services, last year opened a new operation in South Gyle, Edinburgh, creating an additional 60 jobs.

We have also seen major achievements for a number of Scottish companies operating both domestically and internationally. Touch Bionics, a spin-out company from the NHS, has developed the world's first multi-functioning bionic hand, while Galashiels-based ProStrakan continues to expand its international presence by launching in the United States its Sancuso anti-nausea patch for patients receiving chemotherapy.

We know, however, that 2009 will pose a number of challenges for life sciences, both in Scotland and across the globe. Many life sciences companies are facing uncertainty about the impact the downturn will have on their business, particularly those looking to secure finance to fund their ambitions.

However, Scotland has initiatives already available that can help support our companies in these challenging times. Scottish Enterprise's co-investment funds, for example, have been utilised well by life sciences companies – last year alone we invested more than 7 million in innovative companies, leveraging a further 18 million of investment.

Forth Photonics, a medical technology company, is a good example of where our co-investment approach helped to raise 6 million of investment, enabling the company to launch a new device to improve the early detection of cervical cancer in Europe and the US.

The life sciences sector in Scotland is no longer in its infancy, and investment in development and infrastructure have delivered a sound foundation that will help address many of the challenges over the coming year.

The Edinburgh BioQuarter has continued to progress well. The ground is broken on the first building on the site, the Scottish Centre for Regenerative Medicine, which will be a 60 million facility housing some of the world's leading stem-cell scientists. It will open new opportunities for Scotland to lead the way in the development of stem-cell technologies and treatments.

One of the greatest strengths of Scotland's life sciences community is the presence of joined-up thinking between those working in the industry, in government, in academia and in related industries.

This was shown last month by the setting-up of the new Life Sciences Advisory Board, Jointly chaired by Nicola Sturgeon, the deputy first minister and health secretary, and industry leader John Brown, the board will have clear links between the enterprise and health agendas. This is crucial for Scotland to ensure the best possible environment for emerging businesses and established companies alike.

&#149 Rhona Allison is the senior director of life sciences at Scottish Enterprise