From ‘Crown Jewel’ to ‘Terrible Place’: The Fall of UK Pharma

In a dramatic reversal of fortune, the UK’s pharmaceutical sector has gone from being hailed as a “crown jewel of the economy” by the government to being described as a “terrible place” by the very companies it seeks to attract. This stark contrast highlights a deepening crisis of confidence that threatens the future of UK science.
The “terrible place” comment, made by a senior executive at Sanofi, is not an outlier. It reflects a sentiment that has led to a string of damaging investment decisions. MSD has pulled the plug on its £1bn London research center, a landmark project. Eli Lilly has paused a similar investment, and Sanofi is actively reducing its UK research activities.
This fall from grace is being driven by policies the industry considers hostile to innovation. The UK’s spending on new medicines is among the lowest in the developed world. The regulatory system for pricing drugs is based on a model from 1999, and a high revenue clawback rate further erodes profitability.
To prevent the “crown jewel” from losing its shine completely, the government is being urged to act decisively. The industry is demanding a new strategy that makes the UK commercially attractive again. Without it, the narrative of decline will become a self-fulfilling prophecy.