{"pressReleaseArticle":{"contentWrapper":{"title":"Pre-Budget Report response - GSK comments on patent box","intro":"

GlaxoSmithKline (GSK) welcomes the introduction of a new measure – the ‘patent box’ – announced in the Pre-Budget Report to stimulate future investment in the UK

","publishDateTime":"09/12/2009 00:00:00","publishDate":"09 December 2009","forInvestorsAndMediaOnlyText":"","shortDescription":"GSK welcomes the introduction of a new measure announced in the Pre-Budget Report to stimulate future investment in the UK.","image":null,"downloadLink":null,"tags":[]},"components":[{"type":"rich-text","text":"

Issued: Thursday 10 December 2009, London UK

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GlaxoSmithKline (GSK) welcomes the introduction of a new measure – the ‘patent box’ – announced in the Pre-Budget Report to stimulate future investment in the UK.  

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The ‘patent box’ will work by applying a reduced rate of Corporation Tax of 10% to income from patents from April 2013. GSK believes this new system will significantly improve the UK’s international competitiveness and encourage long-term inward investment in the UK from companies seeking to build their future high technologies and manufacturing capability. 

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Andrew Witty, CEO of GlaxoSmithKline said, “The patent box is exactly the sort of active, long-term and creative support that we need from the Government to ensure that the UK remains an attractive place for highly skilled sectors such as pharmaceuticals. For GSK, assuming the new regime will apply to patents currently under development it will have the immediate impact of making the UK a priority area for future investments, particularly in manufacturing.”

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The introduction of the patent box will enable GSK to increase its existing investment in the UK. Near-term likely investments include building a state-of-the-art biopharmaceutical manufacturing plant in the UK.  Biopharmaceuticals are medicines that are made from biotechnology (biological systems or living organisms which are modified for medical purposes).  GSK currently has six biopharmaceuticals in late-stage development for treatment of diseases such as lupus and diabetes, representing 15% of GSK’s clinical pipeline.

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The company is also committing new investment to its facility at Ware, Hertfordshire, to manufacture next generation respiratory medicines.  GSK has significant heritage in this area and has a leading pipeline of new treatments for asthma and COPD.

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In combination, these new investments in UK manufacturing will amount to approximately £500 million and will result in new jobs in UK manufacturing. The introduction of the ‘patent box’ will also benefit small businesses who supply services and facilities to sectors specialising in research and development.  For example, GSK works with more than 20,000 suppliers in the UK.

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GlaxoSmithKline – one of the world’s leading research-based pharmaceutical and healthcare companies – is committed to improving the quality of human life by enabling people to do more, feel better and live longer.  For further information please visit www.gsk.com.

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GlaxoSmithKline Enquiries:

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UK Media enquiries:

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Philip Thomson

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(020) 8047 5502

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Claire Brough

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(020) 8047 5502

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Stephen Rea

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(020) 8047 5502

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Alexandra Harrison

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(020) 8047 5502

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US Media enquiries:

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Nancy Pekarek

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(919) 483 2839

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Mary Anne Rhyne

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(919) 483 2839

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Kevin Colgan

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(919) 483 2839

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Sarah Alspach

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(919) 483 2839

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European Analyst/Investor enquiries:

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David Mawdsley

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(020) 8047 5564

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Sally Ferguson

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(020) 8047 5543

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Gary Davies

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(020) 8047 5503

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US Analyst/ Investor enquiries:

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Tom Curry

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(215) 751 5419

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Jen Hill Baxter

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(215) 751 7002

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