UK’s Low Medicine Spending Creates ‘Hostile’ Market, Say Drug Firms

Pharmaceutical firms are branding the UK a ‘hostile’ market, pointing to the nation’s low spending on new medicines as a primary cause for the recent flight of investment. With the NHS allocating only 9% of its budget to medicines—a figure dwarfed by Germany’s 14% and Spain’s 17%—companies argue the UK is no longer a viable place for growth.
This financial squeeze is having a chilling effect on research and development. Paul Naish, a senior executive at Sanofi, articulated the industry’s view, calling Britain a “terrible place to sell medicines.” His company has acted on this belief, cutting its UK-based clinical trials in half over the last few years.
The repercussions of this low-spending environment are stark. Drug giant MSD has completely canceled its £1bn research facility in London, a move that undermines the government’s life sciences strategy. Similarly, Eli Lilly has put a hold on its London lab, waiting for more favorable commercial conditions before committing.
The industry is now publicly campaigning for the government to create a roadmap to increase its spending to levels seen in comparable countries. They insist that without a stronger financial commitment to innovation, the UK cannot expect to attract or retain the world’s leading pharmaceutical companies.