Pharmaceuticals Industry

1. Pharmaceuticals Industry Cogent and Pharmaceuticals

2. Pharmaceutical Industry • Pharmaceutical Industry: “Traditional” branch • Research = Discovery: new “small” organic molecules (years) • Deep competence in drug discovery via Organic Chemistry • Development: pre-clinical & clinical testing and approval (10 years) • Commercialisation (during Patent lifetime; 20 years) • Issues: regulations & approvals; high drug attrition rate; manufacturing costs; national markets e.g., NHS; pipeline value- innovation; international competition incl. Emerging markets • Bio-Pharma: Non-”traditional” branch • Very large biological molecules-bio-pharmaceuticals (nucleic acids, proteins) • Fundamental understanding of human biology and diseases: R&D cutting edge: Big Science • Many SMEs and micros: start-ups, University spin-offs • Cash short; risky: Survival!! • But no escape from long timescale to commercialisation: technical and commercial symbiosis with traditional Pharma

3. Pharmaceuticals-UK • Largely SE, NW and NE England • £12bn exports; trade balance £3.5bn • 73,000 direct employees (27,000 in R&D); 250,000 related employees • £3.2 bn in UK-based R&D (25% of UK total R&D in manufacturing) • ~100 UK companies producing prescription medicines • UK: 80% all GP prescriptions written generically • Third most profitable UK , after tourism and finance

4. Sector Skills Councils • Cogent footprint: “SIC Codes” • Manufacture of basic pharmaceutical products (24.41 {03}; 21.10 {08}) • Manufacture of pharmaceutical preparations (24.42; new 21.20) • SEMTA: “Science” (not SIC based) • Research and Development • Bioscience • {There will now be (08) a R&D SIC 72.11 (bio) & 72.19 (Eng & Science)} • Other SSCs: • Skills for Health -pharmacy • Lantra -Animal Technologists • Improve – Food Technologists • SSDA –Pharmaceutical packaging

5. Cogent going forward • Re-licensing in 2008: • Rationalise the Science-Pharma and Bio-pharma interface • Post Leitch Review of UK Skills: • Cogent the only body to determine vocational Qualifications eligible for funding: Qualifications valued by employers • Sole “owner” of National Occupation Standards (NOS) • Sole owner of Apprenticeship Standards • National Skills Academy for the Processing Industries • Higher Education: • Emerging and critical area for SSCs generally

6. Current Skills Situation in Pharmaceuticals • Skills Gaps at Levels 2 to 4 • Gaps = employee not fully proficient in current job role • Particular issue with Process and Plant Operatives roles • First line maintenance • Lean manufacture and continuous improvement • Rapid manufacture techniques • Basic chemistry/understanding of processes • Application of knowledge, including graduates’ practical and interpretative skills

7. Current Skills Situation in Pharmaceuticals • Skills Shortages • Vacancies hard to fill due to lack of suitable candidates • Especially Level 4+, graduates in chemical and molecular biological sciences • The “omics” technologies; synthetic organic chemistry; clinical R&D • University courses declining in relevance • Analytical chemistry • ABPI Report: Sustaining the Skills Pipeline in the Pharmaceutical and Biopharmaceutical Industries; www.abpi.org.uk/Details.asp?ProductID=285

8. Pharmaceutical Industry-employees Source: LFS 2006

9. Skills Gaps

10. Cogent Process Industries – Economic Value of Skills Source: DBERR, Value-Added Scorecard, 2007 • Skills Intensity* Process Industries • High : Medium-High • c.f. Banking : Life Insurance • *measured as average employee cost • Skills and Productivity • Basic skills - employment • Medium skills (FE/HE) - productivity • Higher skills (HE) - sustainability Process Industry - in transition: • Value Added • Speciality Products • Process/Product Innovation • R&D

11. Demographics, Skills, Education and Training • Leitch (2006/2007) • UK target as world leader in skills • SSCs as regulators of vocational FE • Close collaboration between SSCs and HE Education Headlines • 70% of 2020 workforce already >16 yrs of age • 12% decline in 18 yr olds 2010- 2020 • 40% jobs will require graduate skills by 2020 • 90% of 2+ A’L student in HE (50% Voc Quals) • UK 11 out 30 (OECD) attainment at Level 4 • FE to have FD-awarding status • all 16-18 yr olds to be in educ OR training?

12. Pharma’s Response • Response part of overall business requirements/pressures • Costs; international competition; M&A; licensing, regulatory, etc • Large organisations becoming leaner, flatter • Less middle-management, more empowered, higher-skilled operational and technical workforce needed • Majors have tradition of in-house training • Small and micro companies: rely on Higher Education; other methods poorly utilised • Other options are to recruit from immigrant population or move manufacturing and/or R&D abroad

13. Industry Response, c’t’d • Pharma companies and their Trade Associations are engaging with the public skills infrastructure-however it’s cluttered and complicated! • Schools, Colleges- out-reach and influencing teaching and content • HE: notoriously tough to change their cultures • Regional and national entities: RDAs, Business support networks, Government agencies such as Learning and Skills Councils • Self-organised networks are addressing, inter alia skills • E.g., ABPI nationally; NEPIC in NE; Biopharma and Health Technologies Employer Consortium in SE • Networks are of variable strength regionally; many quite lean • Networks want joined-up offering from all providers and agencies

14. Cogent’s role • In-depth projects, based on deep knowledge of vocational (and soon higher education) provision and mechanisms, to understand and develop solutions for Pharmaceutical and Bio-pharma employers, employees and education and training providers • including close collaboration with SEMTA and fdf • The existing workforce: demographics are: 75% of today’s workforce will still be employed in 2010 • Cogent Gold Standard for up-skilling the existing pharmaceutical workforce • Entering workforce: • Apprenticeship framework (Level 3) • Career pathways: attraction of talent from school age onwards • Higher Education: Level 4+ • Foundation degrees, articulated to Honours Degrees • New Cogent team for Higher Education in 2008

15. Cogent’s role- c’t’d • Vocational Qualifications: understanding employer needs and translating into qualifications that employers value • Relevant: practical skills combined with underpinning knowledge • Progressive: life-long learning and upskilling • Flexible (modular) provision at work and in classroom • Secure funding from Government for Cogent-approved qualifications • Articulation to honours degree via Foundation Degrees • National Skills Academy for Process Industries • Quality assure provision of all training products and qualifications • Meet individual employers’ individual needs • Shared Skills Needs Database with Cogent for continuing relevance of all training and education of pharmaceutical employees • Skills Brokerage Service: First point of call for any employer • Train to Gain; BIT; but not only these- skills diagnosis and sign-posting to all provision