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25th November 2009 Trends in the U.K. and Ireland Pharma / Biotech Industry Going into 2010 This is the latest in a series of Industry Trend Reports produced by Protel's expert research team in recent months. This report provides an update on our previous trend report on the Pharma / Biotech Industry in the UK & Ireland. To read the full report please click here...
The current economic downturn is affecting all pharmaceutical companies in the United Kingdom and Ireland. There has been a noticeable slowing of larger projects within the sector, although there are exceptions associated with the need to develop vaccines and other drugs to counter the pandemic swine flu threat.
Recent developments in the UK include:
- Novartis Vaccines, a division of Novartis AG, has begun a fast-track project with PM Group, an Irish engineering company, to build a facility for swine flu vaccines at Novartis's Speke plant in Liverpool. The project is progressing alongside other projects associated with increasing the production of seasonal flu vaccines at the site.
- Novartis has also begun a project at its Grimsby plant for production of the API for its Tekturna hypertension treatment.
- GlaxoSmithKline plc has started a project to upgrade facilities in Montrose for the production of Relenza, a drug that alleviates flu symptoms.
- AstraZeneca plc has begun developing a research and development Bioscience Centre site in Alderley Park, Cheshire.
Recent developments in Ireland include:
- Schering-Plough Corporation has started a project for the development of carpoule-filling facilities in its Brinny biotechnology plant near Cork. A major steriles project at the same site is also under consideration, but may be reconsidered in light of the forthcoming merger with Merck, Sharpe & Dohme, a division of Merck & Company, Inc.
- The Irish Development Agency is understood to be actively seeking pharma/biotech companies for its Dundalk biotech park development.
The General situation
The UK and Ireland are feeling the effects of a serious recession. Process projects appear to be far smaller than recent history would lead many to expect, although smaller projects, especially laboratory developments funded through government agencies or hospitals, are still relatively common. The Irish economy is particularly hard hit, as the UK, which is Ireland's main export customer, has a weakening currency relative to the Euro, making such exports less competitive.
It is likely that the recent weakness of sterling will benefit the UK pharmaceutical production industry, which is largely export-orientated, but to date this has not had a noticeable effect on capital expenditure projects.