UK's Blair Backs Biotech Indus, Urges Clear Communication

MICHAEL REID / DOW JONES NEWSWIRES 17nov00

LONDON -- U.K. Prime Minister Tony Blair said Friday Britain's genomics industry is poised to benefit from further investment but he warned the biotech industry to clearly communicate the benefits of scientific advances like stem cell research.

Speaking to the BioIndustry Association's European CEO and Investor Conference in London, Blair pledged continued support to the biotech industry and stressed the need for the U.K. to keep ahead of other European countries in the field.

Blair said Trade and Industry Secretary Stephen Byers will next week unveil allocations of the increases in the science budget which the Government announced in July. The Government wants to increase the science budget by 7% a year until 2004.

"I can tell you that genomics will benefit from those increases," Blair told delegates, which included chief executives, venture capitalists and prominent biotech industry figures.

Blair threw his support behind the industry, which is viewed skeptically by some segments of the population because of its links to genetically modified food and genetic cloning issues.

On the issue of controversial stem cell research - whereby cells are taken from embryos and used to trick the body into regenerating cells - Blair said scientific advances must be debated "in a moral context."

"Some people are opposed in principle to all forms of embryo research on ethical grounds," he said.

"But we must also recognize that where stem cell research has huge potential to improve the lives of those suffering from disease, there are also strong ethical arguments in favor so long as clear and effective regulation remains in place," he said.

He told the delegates that the industry must clearly communicate what the scientific advances mean, in layman's terms. The biotech industry has been criticized in the past for baffling the public with science. More recently, industry experts reckon major pharmaceutical companies could have better handled the public debate over genetically modified foods, which has tarnished the advances in Europe.

"I have an open mind on GM. There are legitimate concerns. But to make heroes of people who are preventing basic scientific research taking place, is wrong," he said.

Blair cautioned against complacency in the industry, saying although three-quarters of late-stage drugs in Europe are produced by British companies, the German biotech community is growing fast.

"But the giants of British biotechnology, like Celltech Group PLC (CCL), dominate the continent. I want to make it clear; we don't intend to let our leadership fall behind and are prepared to back that commitment with investment."

Britain remains the hub of Europe's biotech industry, which is forecast to be worth $100 billion by 2005. But the industry in Europe is still dwarfed by the U.S. sector, which is flush with venture capital.

Blair also moved to downplay fears that biotech and pharmaceutical advances are leading to spiraling costs of medicines - a key issue in the U.S. presidential campaign.

"There are many who argue that the NHS (National Health Service) will simply not be able to afford biotechnology. I reject this," he said.

"Biotechnology offers the chance to eliminate degenerative diseases that currently cost the NHS hundreds of millions of pounds in long-term care," he said.