A senior pharmaceutical executive has accused the UK government of “hand-wringing” and internal conflict, leading to an environment that is driving away crucial investment in the life sciences sector. Paul Naish of Sanofi described a “battle happening within government,” where health officials fail to secure necessary funding from the Treasury, undermining the nation’s scientific potential.
This political paralysis is having tangible consequences. Drugmaker MSD recently canceled its £1bn London research hub, a significant setback for the sector. Sanofi itself has halved its UK clinical trials and last year closed a Cambridge laboratory it had acquired, moving the work to Boston, US. Another major player, Eli Lilly, has also paused plans for a new lab in London.
The frustration stems from the UK’s unattractive commercial conditions for pharmaceutical companies. The NHS’s spending on new medicines, at 9% of its total budget, lags far behind other developed nations. Additionally, the industry is burdened by pricing thresholds that haven’t been revised since 1999 and a “clawback” system that reclaims a substantial portion of their revenue.
The pharmaceutical industry is now calling for a “proper plan” from the government to address these issues. They are seeking a commitment to increase spending on new treatments and reform outdated pricing and repayment policies. Without a clear and competitive roadmap, the UK risks losing its status as a global hub for medical innovation.