Inward investment? Some weighty names think it's worth investing in a locally-committed company that's looking outward, reports Geraldine Abrahams, examining the innovative approach of Core Technologies
INWARD investment is always welcome in Scotland, as it usually brings the introduction of new plant operations, new production methods, new technology and, of course, new jobs. But, as we have seen too often, the effect of foreign parent companies deciding to pull out can be devastating.
The obvious conclusion is that it is unhealthy for any country's economy to become over-reliant on foreign investment; that it would be preferable to first have a stable, viable infrastructure based on locally-rooted industry.
To compete successfully in the world marketplace, such indigenous industries have to be as skilled and technologically experienced as those of our foreign counterparts - and innovative and convincing enough to attract the confidence of investors.
One company showing such qualities, the Ayrshire-based Core Technologies, has become a leader in the development of drug-delivery products and its endeavours were recently rewarded with a #4m investment package from a group of impressive backers including 3i, Atlas Venture, JAFCO Investment (UK) Ltd, and Alan Berkeley Associates.
The company first began operating in May, 1992. Working with chief executive Dr Jim Pickard are three managers, all of whom previously worked for a US-owned drug-delivery company in Scotland. They decided the time was right to set up a Scottish-based company, initially using local technology.
``The first technology we took on board was invented at Strathclyde University,'' says Dr Pickard (originally a pharmacist). ``It was a specific set of pollen called hydrogels, specially designed for drug delivery. Since then, we have acquired a second and entirely different technology from Bradford University, and we are now in the process of developing a third - our own - technology `in house', which is obviously longer-term.''
The company name is derived from COntrolled RElease - the delivery process involving a more efficient use of drugs that ensures patients get the right amount for as long as possible.
``There is a huge opportunity there,'' says Dr Pickard. ``Many new and sophisticated drug compounds that from the pharmaceutical and bio-technology industry are going to require delivery systems to make them work.
``What we do at the moment is take existing drugs and apply controlled release to make them more efficient not only in therapeutic terms but also in terms of economy for the health service.
``We bring that very much into the equation when designing a product, and we see a long-term future of working with the drug discovery companies within bio-technology and providing the service they are going to need to deliver the molecule.''
Currently, 80% of the employees are from a technical background, but as the firm grows and moves into a new development phase over the next two or three years, more jobs will be created in bio-technology and administration, and a likely 50% increase in R&D staff is expected
On the technical side, the workforce is made up of pharmacists, analysts and macrobiologists who have chemistry and bio-science-type degrees. There is also a general administration staff comprising book-keepers, secretaries, an administrator, personnel manager and finance director; and the production team is trained in-house to manufacture the specialised products.
Pharmaceuticals is a growth industry which has seen great change in recent years, with huge mergers at the top end of the market. The bio-technology aspect is one which presents real opportunities for Scottish development.
Scottish universities are now offering degrees in bio-technology, though many bio-technogists actually start out as micro-biologists or bio-chemists specialising in bio-technology. This science encompasses everything from diagnostic kit production to the research of sophisticated new molecules for use in new drug substances. Its ultimate aim is gene therapy.
``We have no problems finding the right young scientists with the right attitude locally,'' says Dr Pickard, ``but when we want to buy experience in the pharmaceutical industry at senior management level, we have to go to the South-east and attract people to Scotland.
``There is not a reserve of well-trained people in the pharmaceutical industry here. But we hope this will change as the company evolves. Our philosophy from the start has been that we want to bring people in at the bottom and grow them up through the company.''
With the past four years spent in its start-up phase, Core Technologies is now ready to move into manufacturing, building new production facilities and contracting marketing partners to sell the products on its behalf, as well as broadening its portfolio of products.
There will be ongoing development and manufacture of new and evolved products, as well as strategic alliances with pharmaceutical companies to apply the Core technologies to other drug substances, providing better therapy.
All the products will be supplied worldwide from an Ayrshire base which is important to the company.
``I feel strongly about growing indigenous companies like ours,'' says Dr Pickard, ``and believe we can create local wealth to be spent and invested here.''
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