North East life sciences sector sees rise in business confidence
The inaugural North East Pharma, Health Tech, and Life Sciences Landscape Survey 2024 gathered insights from more than 30 companies.
The survey, a joint project by The Centre for Process Innovation (CPI UK) and B Corp commercial law firm, Square One Law, found that 75 per cent of the firms surveyed – of which 90 per cent were SMEs – predicted better financial performance in 2025.
Insights were gathered from more than 60 companies (Image: Supplied)
The survey identified further areas for growth and reasons for optimism, including increasing opportunities to expand into the US market, revenue growth, and further technological innovation.
However, concerns were raised over funding disparities and infrastructure gaps, with respondents pointing out the need for these challenges to be addressed to sustain the regional industry’s growing momentum.
Helen Brain, partner and head of commercial at Square One Law, said: “Our region is home to five world-class universities, a collaborative business community, and a dynamic network of innovative entrepreneurs who aren’t afraid to disrupt by doing things differently.The survey identified reasons for optimism (Image: Supplied)
“This thriving ecosystem has cemented the region’s position as a leading UK life sciences hub over recent years.
“To ensure those businesses are able to realise their true potential, we need to ensure they have the support and funding required to move forward.”
The North East boasts a thriving life sciences sector employing more than 15,000 people and contributing £2.7 billion annually to the UK economy.
The region’s strengths lie in pharmaceuticals, medtech, and health innovation, supported by major players like GSK, Fujifilm Diosynth, and Sterling Pharma, which have major regional facilities.
Recent investments of more than £100 million by these pharmaceutical companies within the region underscore the sector’s continued growth, with an additional £40 million investment by Organon further strengthening its future outlook.
Approximately 80 per cent of pharmaceutical products manufactured in the region are exported, demonstrating the importance of strong trade links and technological innovation.
Dr Alex Cole, director of market strategy at CPI, said: “The North East region is a flourishing hub of activity in life sciences, spanning medtech, pharma, and engineering biology.
“At CPI, we work with life sciences companies every day, supporting them to innovate, grow, and create a positive impact on the local economy, healthcare provision, and the development of more high-paid jobs.
“It’s vital that our narrative to central government highlights the excellence we have here—excellence that deserves to be supported and nurtured for continued growth.”
One of the companies to have contributed to the survey is Lightox, a Newcastle-headquartered biotechnology company developing therapies for mouth cancers.
Lightox CEO Dr Sam Whitehouse (Image: Supplied) Dr Sam Whitehouse, chief executive officer, said: “It’s great to see this report on the state of our life sciences in the North East and see what is a growing community of companies that are attracted to and being born out of the region from our strong scientific base.
“The challenges for the region, it is sad to say, remain fairly constant.
“We have suffered from a lack of investment both from the private finance and from government, with the majority of investment being in the South East and the golden triangle.
“There is sadly a lack of investors in the North East, and much of the finance gained by our companies comes from overseas.
“However, despite these challenges, we see more and more SMEs in region, more jobs being created and a demand for space increasing.
“The technologies being developed continue to be at the cutting edge of innovation, and the value of these products continues to increase.”