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Life sciences and healthcare are set to be the predominant areas for funding from the Technology Strategy Board, it has emerged.
Zahid Latif, head of healthcare at the TSB, said funding for medical projects had been relatively minor in the past but this was set to change.
Speaking in advance of a healthcare trade mission to Boston, which saw 20 British firms given the chance to market their ideas in the US, Latif said: “Two or three years ago our activity in the health space was relatively small, now, as an activity for the TSB, it’s going to be the biggest area we’re committing funding in. Life sciences is a big opportunity for the TSB.
“We’ve recognised the importance of knowledge-based industries, and life sciences play strongly into that.”
Latif said the firms on the mission would benefit from the chance to make contacts, find collaborators and partners, market their products, and attract investment. This might not necessarily come from the US but from Britain, following the firms’ profiles being raised overseas.
The mission would also give the companies the chance to get to grips with US legislation and regulatory issues. The US Food and Drug Administration is widely viewed as having the most stringent regulatory environment for medical products globally.
“What does the US see in British healthcare technology?” asked Latif. “Inventiveness – and the proximity of the NHS, which makes devices scaleable. Everyone is looking at how they can improve efficiency, as healthcare costs are increasing everywhere. People are looking for solutions that will help them deliver quality of care at reduced cost. The companies with the real potential are ones that hook into the issue and have thought strategically.”
Anaxsys, which specialises in devices that measure breathing rate, was one of the firms on the healthcare mission. In advance of the event last month, Barbara Lead from the firm said: “We don’t want to sell our respiratory rate counter ourselves, we’re too small for that. We want to find distributors in America. And we have just applied for regulatory approval. We are hoping to get approval next year.”
Lead said: “We’re looking for partners to help market the product for us in the US. And we’re also looking for investment to be able to develop a second product, a tool that can screen for lung cancer.” The device could one day be used by general practitioners to screen patients who smoke. “We need investment to accelerate the product,” Lead said.
She added: “I also would really like to meet companies who would be interested in marketing our respiratory device in the States. Obviously, we won’t come away from the health mission with a deal, but it could give us leads to follow up that might lead to a licensing and distribution deal in the US.
“The US is more likely to invest in medical devices than the UK. It’s not a fast return, it can take years. The market is much more favourable in the US. I think British investors tend to be more risk-averse, and also want faster returns.”
Anaxsys has benefited from a grant of £200,000 from the TSB to develop the respiratory rate counter. “They have been very helpful in setting up the mission. It’s an excellent opportunity for us to find out how the American market works,” she said.