Why Commercial Nous Can Bolster UK Life Science Research

Considering the size of some multinational pharmaceutical companies in the UK, it may seem unusual to read criticism of the UK life sciences sector for a lack of commercialism. However, it has been argued that one particular segment of the industry needs to become more commercially focused to fulfill its potential.

This is an area in which they are currently falling short, according to Professor of additive manufacturing Richard Hague, from the University of Nottingham.

A Commercial Problem

Writing for the Times Higher Education, Prof Hague noted that Britain’s universities have a wealth of research expertise and carry out some of the best science and technology research in the world. This has led to the creation of many spin-out firms.

He observed that university spin-offs are a notable feature of the life sciences sector. They have the potential to take some of the best research in the UK’s academic sector and transform it into real-world solutions with huge benefits for patients, while also becoming highly successful enterprises with large-scale export activity.

However, he added, “Too often, research-generated intellectual property (IP) is simply not getting converted into tangible commercial and investible business opportunities as widely as it should be.” This, he noted, is despite the fact that British universities are nonetheless better at commercialisation than their European counterparts.

Prof Hague said a key reason a lack of commercial nous does not carry a heavier penalty for the overall economy comes from the geography of the ‘golden triangle’ of Oxford, Cambridge and London, as this area is close to where investors are based (particularly in the capital), while the institutions themselves do have a strong “culture of fostering innovation”.

However, he noted, while spin-outs from institutions within this triangle raised £1.4 billion in research funding in 2023, all the funding raised by spin-offs from other universities outside that area barely amounted to more than half of that.

Thinking Outside The Triangle

Arguing that academic career progression is often hampered by halting such activity for work in the commercial sector, Prof Hague also warned that a lack of seamless partnerships between these sectors can prevent discoveries and innovations reaching their potential.

He contended: “Fostering greater collaboration between academia and industry, including via licensing or patents and spin-outs, is essential for driving sustained growth and innovation.”

Calling for change from Universities and incentives from the government for institutions to do more to commercialise their research, the professor lamented the ongoing “disconnect between developing world-class research and getting it out to market.”

Why Marketing Matters

Of course, commercialisation has many elements, but life science marketing is one important aspect.

This may be the end goal of the process of bringing through new developments as products to sell, but firms with a stronger focus on providing things that can be marketed may be helped to emerge by an associated emphasis on getting their new products marketed well.

Indeed, having a clear plan that incorporates a marketing strategy may provide the kind of end-goal focus that encourages investors seeking a return on their capital.

While the professor’s criticisms may highlight some significant structural and cultural challenges for the development of spin-outs as players in the wider commercial market for life science products and innovations, there are still some promising developments in the areas outside the ‘golden triangle’.

Positive News In Wales

For example, Draig Therapeutics, a University of Cardiff spin-out firm, has just secured £107 million in equity investment from international venture capital investors. This funding, which, Business Live reports, is the largest ever secured by a spin-out from a Welsh University, will help fund stage two trials of DT-101, a drug designed to combat major depressive disorder.

As it happens, Cardiff University’s Research and Innovation Services was launched in 2017 with European and Welsh government support, with the specific aim to help spin-outs make the jump into the commercial sector. This may represent something of the kind of support structure Prof Hague has called for from Westminster.

Its research commercialisation manager, Rhodri Turner, said the investment “represents an outstanding success for the university’s Medicines Discovery Institute and will significantly accelerate the delivery of much-needed therapeutics to patients.”

Good News From Scotland

There have been other recent instances of spin-outs gaining new funding, too, albeit on a smaller scale.

Insider Media has reported how Glasgow-based Strathclyde University spin-out ScreenIn3D has secured £750,000 in seed funding to develop its lab-on-a-chip testing system, which enables cancer therapies to be tested on tumour samples taken from patients instead of animals.

While the university itself has provided some funding, much of the money has come from private investors.

These developments may show that spin-out firm commercialisation can take place across the UK. But at the end of the process, good marketing will still be essential.