Delay in re-joining Horizon could impact UK MedTech

James Shepard, Managing Director UK and Ireland at Cadance Science Partners, commenting on the delay by the UK to re-join the Horizon Europe program and its impact on medical technology in the country.

Horizon Europe, the EU’s flagship funding program for research and innovation, is the gold star the UK should still be aiming for. It is by far the world’s largest program for multi-country collaborative R&D and opens doors to high-quality collaborations with the best researchers, innovators and businesses around the world. If the UK government really wants ‘superpower’ status to be more than just a PR slogan then we need a commitment to investing in the country’s infrastructure, attracting international talent and fostering an environment conducive to growth.

Associate membership was agreed upon as part of the withdrawal agreement when Britain formally left the EU, however, the EU is in the process of finalizing this association. With months of ‘urgent’ work to secure a deal, time is running out to make the most of this seven-year program, which will end in 2027, and the medical technology sector is no exception Not there. This delay is having an effect.

Historically, it is true that medtech has not benefited from Horizon membership as much as other sectors of the life sciences industry. Over the past year, Horizon has focused most of its funding on the digital affairs, climate and energy, bio-economy and food sectors, and the start-up and innovation sectors. However, rejoining the Horizon program offers UK medtech innovators the opportunity to rekindle their relationship with Horizon, enabling them to drive medical innovation, timely access to quality health interventions, improved health outcomes for patients and Raising more money for affordable health care helps. Horizon Europe has the potential to provide a truly invaluable source of funding, and therefore has an important role to play in the future of medtech.

One area of ​​medtech that will greatly benefit from Horizon membership is AI. Advances in AI are going to support the future of the medtech industry, and generic AI is projected to grow faster in the medtech industry than any other sector. In fact, according to Statista, in 2021 AI in the healthcare market worldwide was expected to be worth $11 billion. It is estimated that the global healthcare AI market will be worth approximately US$188 billion by 2030, growing at a rate of 37% from 2022 to 2030.

AI can and will improve the medtech industry in a variety of ways, including making processes more efficient, helping companies personalize their consumer interactions, unlocking new avenues of innovation through unconventional creativity, enterprise data and knowledge including improving access to In the UK, the government plans to open five centers dedicated to exploring the potential of AI in healthcare. They will be based in London, Glasgow, Leeds, Oxford and Coventry, and will focus on a particular application of AI.

One example of AI already being used in the medtech industry is at Addenbrooke’s Hospital in Cambridge. They are using Microsoft’s InnerEye system to automatically process scans of patients with prostate cancer. The system takes a scanned image, outlines the prostate on the image, marks the tumor and reports back. This is leading to advances in the treatment of prostate cancer and is now being investigated for use on patients with brain tumours. The ever-increasing use of AI is directly leading to the need for more funding and the delay in the Horizon agreement is putting a brake on it.

Another obstacle is that medtech firms often find it more challenging to raise venture capital funding than some other popular sectors. Venture capitalists, who have long been the lifeblood of medical technology companies, are turning wary of the sector due in large part to inflation. Instead, investors are looking for more reliable industries that can offer quick and low-risk exits. For example, therapists find this process very easy. Therefore, the medtech industry has increasingly relied on grant funding, especially companies in their early stages. Delays in access to the next version of Horizon are only exacerbating the issue, causing more damage to the medtech industry, and potentially forcing the closure of some smaller, start-up companies.

MedTech is going to power the future of healthcare and bring technology and medicine even closer. The use of technology will make healthcare more manageable, more affordable and more accessible in the future. Medtech companies are well-positioned to drive the future of healthcare, not only in the UK, but around the world, but most can’t do it alone.

Therefore, it is important that public sector bodies invest in and nurture medtech. The UK health system is recognized around the world as comprehensive, successful and reliable, helping to make the UK a leading contender in the world of global healthcare. Ambitious researchers and innovators should be encouraged to pursue this. Medtech has a vital role to play in the long-term financial stability of the UK health and care system, and Horizon membership will help to achieve this.

From a real estate perspective, which is where my own experience as Managing Director of Cadance lies, medtech firms typically require either office space or low grade lab spaces. They will often take up smaller space and look for highly flexible terms as they are more cost conscious. Given that they too are likely to be acquired, they don’t want to lock themselves into long leases. Once again, this is an area that is extremely cost-effective for the medtech industry, and therefore requires a high level of sustained investment. Medical technology cannot develop if there is no room for it. The fact is that the government’s delay in ratifying the Horizon deal has left key industry members waiting for these spots.

Medtech progress doesn’t happen in a week; It needs a multi-year financial commitment that this deal can and must provide.