The global pharmaceutical industry has sent a clear and direct message to the UK Treasury: it’s your move. After a series of investment cancellations and public criticisms of the UK market, the industry is putting the responsibility for a solution squarely on the government’s finance ministry, demanding a “proper plan” to restore competitiveness.
This call to action follows a period of turmoil for the sector. MSD has abandoned a £1bn research center, Eli Lilly has paused a major lab project, and Sanofi has halved its clinical trials. Sanofi’s UK chief, Paul Naish, explicitly stated that a plan from the Treasury, in coordination with other departments, is what’s needed to fix the situation.
The industry’s argument is that the core problems are financial. The UK’s low spending on medicines, the outdated pricing system, and the high revenue clawback rate are all issues that fall under the Treasury’s purview. They contend that without the Treasury’s approval and leadership, no meaningful reform is possible.
The Treasury is now in the spotlight. Its response will determine whether the UK can halt the exodus of pharmaceutical investment or if it will continue to see its life sciences “crown jewel” tarnished by a perception of government inaction and an unsupportive financial environment.