Improvements Expected For UK Life Sciences Investment
Date posted:
News
The UK’s patient capital review is expected to deliver benefits for the country’s life sciences sector, it has been reported.
According to Out-Law, improvements could be made to the current structure for investing in life sciences research and development within the UK, and the patient capital review is expected to help bring these about.
The website notes that the current system for investing in leading-edge science often results in funding going to less risky growth companies rather than the higher risk firms. It noted that research and development within the life sciences sector typically falls into the latter category and therefore it’s losing out.
Establishing a new class of investment, such as Scientific enterprise investment schemes (EIS) or seed enterprise investment schemes (SEIS), could help differentiate this kind of investment, the site noted.
These Scientific EIS and SEIS could then be given additional tax advantages by the UK government, on top of those already available for venture capital schemes, to help encourage more individuals to put their money into R&D in the life sciences sector despite the higher risk.
Another option would be to ensure there is no limit placed on the tax-incentivised funding that Scientific EIS companies are allowed to raise.
Early stage investment in life sciences companies increased considerably last year, the Daily Telegraph reported in January. Experts in the sector were confident that this level of investment would continue or even increase throughout 2017.
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