The world-class pharmaceutical company, GlaxoSmithKline (GSK), is set to spend £500 million on a new state-of-the-art biopharmaceutical manufacturing plant and on improving its facility in Ware, Hertfordshire. The move comes after a pre-Budget report reduced the rate of Corporation Tax on 10pc on income arising from UK patents.
It seems that over the past few months, GSK and the drug industry have been in talks with the government about the proposal, which has been labeled a “patent box”. Speaking of the ‘patent box’, Andrew Witty, chief executive of GSK, said: “The patent box is exactly the sort of active, long-term and creative support that we need from the Government to ensure that the UK remains an attractive place for highly skilled sectors such as pharmaceuticals. For GSK, assuming the new regime will apply to patents currently under development it will have the immediate impact of making the UK a priority area for future investments, particularly in manufacturing.”
There is much speculation regarding the location of the biopharma site, but Stevenage, Ulverston and Barnard Castle, where the company has existing sites, are all in the running. Products that could be developed there include Arzerra, for leukaemia, and Syncria, for type 2 diabetes.
This investment is GSK’s largest in the UK for at least a decade and highlights the impact that the new tax regime could have on companies investing in research and development. To read more about this story, please visit the Telegraph website.
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