Biotech bosses call for government-backed funds

LONDON (Reuters) - Leading figures from the biotechology sector have called on the government to invest in the industry by launching two government-backed funds and a public-private partnership to help finance the battered sector.

Twenty-two biotech leaders, including Chris Evans, the founder of medical sciences investment house Excalibur, recently submitted a proposal to the Prime Minister calling for the creation of an investment partnership with the government and two funds worth over 500 million pounds each.

One of the pots of money would invest in consolidation to help smaller biotechnology companies band together to protect them from the banking crisis, while the other one would help companies achieve high growth by funding acquisitions.

"The government support needed would be in the form of genuine investment with a view to delivering significant financial return to government and the taxpayer whilst protecting and growing one of its most prized industries," signatories of the dossier said in a statement.

"If government were to embrace these initiatives on the scale outlined, it will effect fundamental change in the biotech sector and enable it to create wealth, jobs and contribute towards building a truly high tech, high value economy in Britain," they added.

Biotechnology -- a notoriously high-risk business -- has been hard hit by the credit crunch as investors have moved to safer havens, leaving many companies short of funds.

(Reporting by Rhys Jones; editing by Simon Jessop)