Summer Adjournment

George Freeman Excerpts

Tuesday 19th July 2011 Commons Chamber

[George Freeman (Mid Norfolk) (Con)]

I am grateful for this opportunity to speak, and for your patience, Madam Deputy Speaker. I apologise if I am unable to be here for the winding-up speech, but I have to be in Westminster Hall at 4.30.

This is an important opportunity to raise issues that are close to our hearts. I want to talk about the potential contribution of the NHS to medical innovation in the life sciences sector and in this country, and to driving economic growth. Before coming to Parliament I had the privilege of working for 15 years in the biomedical industry. It is a subject close to my heart, and I am pleased to have this opportunity to raise it. I draw Members’ attention to my declaration in the Register of Members’ Financial Interests.

My key message is that because of major changes in biomedicine and the structure of the pharmaceutical industry, including in the disciplines of drug discovery and drug development, the NHS is now one of the most valuable assets in global biomedicine. It is vital that Parliament and the Government support the NHS in unlocking that opportunity, ensure that our NHS reforms recognise and support it, and recognise the global potential of our health care sector and our NHS to drive growth and revenues around the world, which can be reinvested back into our research base.

The life sciences are an important sector in the UK. Some 27,000 people are employed in UK pharmaceutical research and development, and there are 250,000 employees in life sciences-related industries. Employees working in the highest value sectors each generate more than £190,000 in gross value added. We are of course home to GlaxoSmithKline and AstraZeneca, but we also have a range of specialty pharma, biotech, device and diagnostics businesses.

However, there is a problem: the pharmaceutical sector has been a victim of its own success. While research and development spend has doubled in the past 15 years, the rate of success in new chemical entities discovered has fallen by about a third. That crisis is driving a wave of consolidations and restructurings in the industry, some of which we have seen recently, and the rapid closure of some of the older-style, Fordist discovery structures. The increasing trend in biomedical discovery is towards patients and getting back to the places where one can observe disease and watch it taking hold in tissues. The trend is to look at anonymised, consented mass patient data to understand how it is that different patients respond differently to diseases. That is undermining the global pharmaceutical business model. These days, a one-size drug does not fit all. The industry needs to understand why it is that people react in different ways.

As the industry looks around the world for places where it can access large repositories of anonymised, consented patient data that are in the hands of world-leading clinicians and scientists with an ethical regulatory framework, this country and the NHS stand out. This is a massive opportunity for our sector and the NHS to unlock new revenues around the world. The benefits for us are obvious. We can accelerate new medical discovery, cut costs, generate new funds for the NHS and give our sector a position of global leadership. The irony and the challenge is that the NHS itself is an obstacle to the rapid uptake and adoption of some technologies and innovations because of its centralised and bureaucratic budgeting, its lack of empowered and devolved responsibility, difficulties with its reimbursement and procurement structures, which are often dominated by the bigger companies rather than smaller more innovative companies, and problems with career structures for our most innovative scientists.

I know that Ministers and officials at both the Department of Health and the Department for Business, Innovation and Skills are considering this matter. I merely wanted to take this opportunity to highlight how important it is, not just for our medical innovation and health care but for our global growth imperative, for the UK to unlock that potential and ensure that the NHS reforms, far from undermining that important sector, support it.