Industry Warnings UK Life Sciences Slides in Global Investment Competition
According to a stark new report, Britain’s ambition to build a world-leading life sciences industry is being hurt by declines in investments from global pharmaceutical groups and growing criticism.
The Association of Pharmaceutical Industry (ABPI), which works with PwC, warns that the UK is “losing the game” to attract foreign direct investment, citing access to poor internet drugs, low government support and unpredictable NHS NHS pricing down the basket.
The 50-page study benchmarked international peers with 48 competitiveness indicators and found that in 2023, investment in life sciences fell to £795 million in 2017 in mid-2023, down from 2017 levels, and in just two years of seniority, the UK fell to seventh in the global rankings. Pharmaceutical R&D has also slowed significantly since 2020, growing only 1.9% per year, with a global average of 6.6%.
The warning is that as Merck cancels plans for £1bn London Research Centre, cutting 125 jobs, while Astrazeneca abandons its £450m vaccine field expansion at Liverpool. Eli Lilly and Sanofi also issued an alarm that Britain’s operations were suspended or reduced until government policies became clearer. Executives say the industry’s world-class research infrastructure, academic institutions and booming biotech ecosystem are masked by rising regulation and reduced confidence in the UK market.
The findings threaten to undermine Labor’s industrial strategy, which identifies life sciences as one of eight key growth sectors. Ministers insist that the UK remains the most attractive destination for life science investment, pointing to new funding and partnerships, but industry leaders warn of urgent action if the UK is to compete with U.S., Chinese and European competitors for the next generation of drug discovery and development.
