The United Kingdom has reached a “critical point” in its relationship with the global pharmaceutical industry, with a senior executive warning that the country is no longer a good place for medical development. As the UK’s commercial environment sours, companies are increasingly looking to more attractive markets like the US and China for investment.
This shift is starkly illustrated by recent corporate decisions. Sanofi, for instance, closed its Cambridge labs and transferred the work to Boston, US. Similarly, Eli Lilly has put its London “gateway lab” on hold while it proceeds with building two such facilities in China and operates three in the US. These moves highlight a direct loss of cutting-edge research to global competitors.
The reasons for this capital flight are rooted in UK policy. At 9% of total healthcare spending, the NHS’s outlay on medicines is significantly lower than in competitor nations. This, combined with a high revenue clawback rate and pricing rules unchanged since 1999, creates a difficult market for drugmakers to operate in.
Unless the government produces a roadmap to align its policies with international standards, the trend is likely to continue. Executives are demanding a plan that raises spending and modernizes commercial terms. Without it, the UK’s legacy of scientific excellence may not be enough to prevent a brain and investment drain to more welcoming shores.