How the Life Sciences Innovative Manufacturing Fund can boost funding for pharma

Since the turn of the decade, the pharmaceuticals industry has dealt with supply chain challenges caused by both the pandemic and global conflict. To stay competitive, businesses have been compelled to expedite their innovation strategies, leading to a surge in technology and AI adoption across operations. In response to evolving market demands, firms have rapidly advanced their innovation roadmaps, with technology and artificial intelligence becoming integral to daily business processes.

Unsurprisingly, developing a successful innovation strategy is often heavily dependent on investment in R&D. AstraZeneca, for example, invested £6.1bn into its R&D activities in 2019 alone.¹ To help support businesses in the sector, the UK government has introduced the Life Sciences Innovative Manufacturing Fund (LSIMF), an initiative aimed at bolstering the UK’s pharmaceutical sector amidst ongoing supply chain challenges.

With £520 million, the fund will be available from 2025 to bolster R&D resilience and bring life sciences manufacturing back to the UK. Recent medicine shortages in the UK have highlighted the urgent need for funding, and the LSIMF offers pharmaceutical firms a compelling option to improve their cash flows.

Unprecedented disruptions require innovative solutions

The LSIMF will provide financial support to drive advancements in drug development and medical technologies, improving patient outcomes with the intention of strengthening the UK’s position in the global healthcare market.

Addressing supply chain vulnerabilities is a primary motivation for the fund. The recent medicine shortages underscore the necessity of more funding to ensure a steady supply of essential medical and healthcare products. In the UK, over half of acute hospitals reported not being able to fill over three-quarters (76%) of medicine lines within eight weeks of a supply chain disruption.² The LSIMF aims to build long-term resilience against future disruptions, providing pharma firms investing in their R&D efforts with a well-deserved cash flow boost in the midst of unprecedented global challenges.

Boosting R&D and retaining talent

Competition between Europe, the United States, and China has made it harder for the UK to attract and retain talent. The LSIMF seeks to counteract this trend by providing substantial financial support, fostering high-paying, high-skilled jobs, and creating economic opportunities. This investment not only benefits individual companies, but also strengthens the broader economy, positioning the UK as a competitive player in the global market.

The fund also paves the way for further economic growth and job creation. Previous rounds of funding have already had a significant impact. For example, a £75m investment into biopharmaceutical firm Ispen saw the expansion of its manufacture of innovative medicines for neurological conditions at their Wrexham facility. This created 39 new jobs, while safeguarding over 30 existing positions. £36m was also invested into Randox to modernise the manufacture of antibodies at its new facility in Crumlin, Northern Ireland, creating 90 new jobs.³

These investments enhance production capabilities, stimulate local economies, and improve job markets. Additionally, the fund supports advancements in healthcare through groundbreaking drug formulations and medical devices, improving patient outcomes and public health.

The LSIMF also emphasises environmentally sustainable manufacturing practices, aligning with the government’s 2050 net zero target. By supporting eco-friendly methods, the fund will help companies reduce their carbon footprints and operational costs, contributing to global sustainability efforts.

Handling a “complex” application process

The LSIMF targets UK companies proposing projects related to human medicines and MedTech products. Applications for complex medicines, innovative medical technologies, and diagnostics are particularly encouraged. First, eligible companies must hold or intend to apply for a Good Manufacturing Practice (GMP) Human Medicines license or an Investigational Medicinal Products Directive (IMPD) license.

Phase 2 of the LSIMF closed earlier this year, but a new application window is scheduled to open over the next couple of months, targeting large-scale transformational investments. Additionally, a separate competition for SMEs will also commence in the autumn. The staggered approach will ensure that a range of different projects can receive support from the fund.

However, for a business of any size, interpreting the eligibility criteria is not always simple, and understanding whether projects are eligible for the fund will require a certain degree of scrutiny. To ensure a project’s feasibility, a sensible starting point is to align the components of the project with the fund’s criteria, to gauge how well the R&D activity meets the necessary standards. Following this initial assessment, seeking further guidance and support can also be beneficial, especially if internal teams are already stretched.

Those that are able to navigate the grant process effectively will accelerate expansion plans, boost innovation, and strengthen the UK’s resilience in tandem. However, it’s crucial that firms adopt a strategic and well-structured approach to their application. Not only will this increase their chances of funding, but it will bolster our healthcare market and ensure that the fund drives the technological advancements the sector needs.