Eisai’s European endeavour

In January 2006, the Japanese pharmaceutical giant Eisai announced the building of a £75 million strategic business hub in the Hatfield Business Park, Hertfordshire.

Why did the Japanese drugs giant decide on the UK?

Mr Haruo Naito CBE, president and chief executive of Eisai, says, “We believe that Europe is a key market to invest in.”

Eisai has had a presence in the UK since 1988 and more recently it has opened offices in other European markets including Germany, France, Spain, Italy, Switzerland and Sweden.

However, Eisai wanted to improve the “quality, efficiency and productivity” of its European operation, and decided to develop a ‘seamless value chain’ incorporating the business, research, development, production and sales and marketing functions on one site.

UK is the gateway to Europe

The European pharmaceutical market, with its high potential for growth, is one of the most highly prized in the world.

The UK is both one of the biggest European markets for the pharmaceutical industry and one of Europe’s biggest suppliers.

Currently over half of the medical products made in the UK are exported; so the UK is a logical base for pharmaceutical companies wanting to sell their products in Europe.

A history of successful research

By centralising its European operations, Eisai is also building on a long-term and successful research presence in the UK.

Work at Eisai London Research Laboratories, based in University College London, has already led to the identification of a new compound that is now undergoing clinical trials for the treatment of several neurodegenerative conditions including Parkinson’s disease, epilepsy and multiple sclerosis.

The London research labs will not move to the new centre, but clinical research and production should start there by 2008.

Reputation for scientific innovation

Yet as Mr Haruo Naito explains, the real attraction of the UK for Eisai is its “reputation for scientific innovation”.

More than 450 pharmaceutical companies have a significant research and development or manufacturing presence in the UK, and over 40 per cent of the total drugs developed for clinical trials in Europe in 2003 were developed in the UK.

In addition, the UK Government is proactively encouraging pharmaceutical company investment.

Both UK Trade & Investment and regional development agency East of England International worked with Eisai to facilitate their move to the UK.

Sosei’s UK move

Eisai is not the first Japanese pharmaceutical firm to be attracted to the UK.

In July 2005, Sosei announced its acquisition of the UK-based biopharmaceutical firm Arakis at the cost of £106.5 million. But it wasn’t just Arakis’ wealth of potential products that attracted Sosei.

It also gained a highly-experienced management team with expertise in US and European Union (EU) drug development and commercialisation.

This is crucial, because it gives Sosei clinical development and regulatory capabilities in the EU as well as the USA and Japan, helping with the international commercialisation of its products.

R&D expansion

The success of the acquisition has led to the expansion of the group’s UK-based R&D facility.

It is moving to a new purpose-built building, almost trebling its existing floorspace.

The expanded operation will also act as Sosei's European headquarters.

“Additional space is required to continue the expansion of the Group's R&D base in Europe as an integral part of Sosei's strategic vision of becoming a global top 10 biopharmaceutical company,” said Stuart Gibson, Director of Finance at Arakis.

“The office will be the base for the Group's operations in Europe, providing an excellent environment for research, development and commercial activities."