Discovery Park (DP) is a 220-acre ex-pharmaceutical manufacturing site, with research and development capability, based in the southeast of England. It was wholly owned by Pfizer from the 1950s until 2011, with infrastructure constructed over this period for its own purposes – discovery, development and large scale manufacture.
In 2011 Pfizer formally announced the closure of the site. This move resulted from global restructuring and was replicated across the sector – investment shifted to M&A rather than R&D, sites were consolidated, and portfolios depreciated as drugs reached the end of their patents.
After local and Central Government intervention, a purchaser for the site was found with mechanisms put in place to try to save as many jobs as possible. Plans for the site to be repurposed as an open innovation campus and science park were bolstered by Enterprise Zone Status, and a dedicated, though small, investment fund established by Kent County Council supported the activities of the initial purchaser. They successfully attracted a small community of SMEs and startups to the site, and in turn sold it to The Midos Group in 2016.
Amanda Lennon was asked to help after limited success during the new owner’s first six months.
Challenges
- The site had been built for single occupancy and did not easily lend itself to partition.
- Some infrastructure is very specific, expensive to keep online, and were possibly contaminated.
- It is a geographical outlier. While only an hour and a half journey from London, it is very much “out in the wilds”.
- This area of the UK does not have the volume of IP generators (spin-outs, startups or scaleups) that would usually ensure the sustainability of a science park of this size and complexity.
Amanda’s role was to lead:
- The creation of a compelling vision for the site.
- Relationship management and improvement – local and central Government, Pfizer and many others.
- Attraction of public sector support (funding and otherwise) for activities.
Results
The initial objectives were successfully delivered and have continued to inform investment decisions. It was however challenging as similar sites are generally public-private joint ventures, making the business case for activities, that are essentially economic development, easier to articulate and secure funding for. Some of the notable achievements are:
Creation of Vision based on:
- Research into life science investment trends, challenges and opportunities identified by interview, document review and consultation.
- Examination of public sector support mechanisms, the likelihood of successful application, and strategy to overcome the many barriers to entry.
- Feasibility studies for several initiatives including venture development (incubation, acceleration and the attraction of investors); “pay as you go” GMP catapult-like services; attraction of other sectors including tech and defence specifically.
- Identification and attraction of support from critical stakeholders.
Secured significant anchor tenant – Pfizer had retained a small presence on site after its initial sale – and their footprint had grown. By 2019 Pfizer had:
- Committed to renewing the lease and expanding their presence.
- Committed significant “match-funding” for a collaborative SILP bid (see below).
- Committed £20m to establish an on-site Paediatrics Centre of Excellence.
- Committed significant funding to digital transformation initiatives to be delivered from the site.
Established a Consortium for a £65m+ application to the UK Industrial Strategy Challenge Fund via the Strength in Local Places initiative. Highlights include:
- Created a compelling application for a digital transformation hub, complemented by a digital skills hub and venture development activities. Include the application of AI and big data in patient-centric medicines development.
- Collaborators included Pfizer, MMIP, Laboratory of the Govt Chemist (LGC), AHSN, NHS, universities and has been supported by local, regional and central Govt.
- Secured 68% industry match funding from stakeholders that included Pfizer, Discovery Park, AHSN, LGC.
- Commitment to the establishment of a significant venture fund.
Secured Life Science Enterprise Zone status – This was secured after creating a compelling bid and securing support from private and public stakeholders, including pharmaceutical companies and their industry association; local and central Govt agencies; local and national universities; and NHS organisations. This status includes some public sector funding for activities, incentives for company relocations and central Govt dedicated inward investment support.
Asset appreciation – From £20m to c£80m (2016 – 2019) as a result of new client acquisition, existing client growth, the attraction of public sector initiatives, and successful planning applications supported by low-cost Govt-backed borrowing and grants.