Convatec to expand R&D facilities in UK and US

(Sharecast News) - Convatec is to ramp up its research and development facilities in the UK and US, the medical products and technologies specialist said on Wednesday, as part of a $1bn decade-long investment plan. The UK firm said it would open a new state-of-the-art centre in Manchester, slated for operation by 2027, and expand its facilities in Boston by the end of this year.

Around $600m will be invested in the US over the next decade, and £500m in the Manchester hub. The UK facilities will focus on all four of Convatec's core categories: advanced wound, ostomy, continence and infusion care.

The blue chip called the investment plan a "significant milestone" that underlined its commitment to both the US - which is responsible for about 57% of revenues - and UK.

As at 0900 BST, shares in Convatec were 1% higher at 232.91p.

A number of companies across the drugs and life sciences sectors are increasingly focusing investment plans on the US, to avoid the worst of Donald Trump's swingeing tariff regime.

In addition, both AstraZeneca and US giant Merck recently announced intentions to halt planned UK investments.

At the time, Merck blamed successive British governments for not investing heavily enough in the sector.

Convatec said on Wednesday said the UK remained an "attractive destination for life sciences, with a deep talent pool, strong research base and supportive environment for innovation.

"Convatec's plans, subject to government support, reflect our confidence in the UK's future as a global hub."

However, it noted: "It is critical that UK government policy, legislation, reimbursement decisions, and initiatives enable companies like Convatec to serve the best interests of patients, protect patient and provider choice and deliver value for taxpayers."