The UK is slipping in the global race for pharmaceutical investment, R&D and clinical trials, according to the new Pharmaceutical Competitiveness Framework from the ABPI and PwC.
Benchmarking the UK against peers across 48 indicators, analysis shows that the country’s position has weakened significantly since 2018.
UK pharmaceutical R&D growth slowed to just 1.9% annually from 2020, far behind the global average of 6.6%. Foreign direct investment has followed the same trajectory, standing at £1.89bn in 2017 before dropping to £795m in 2023 – a decline of 58%. The UK’s international ranking fell accordingly, from second place in 2017 and 2021 to seventh in 2023. The country’s position in commercial clinical trials has similarly eroded.
Despite these setbacks, according to the report, the UK retains a powerful life sciences base. 16 of the world’s top 100 universities in life sciences and medicine are located in the country, supported by world-class infrastructure such as the UK Biobank, the Francis Crick Institute and the Laboratory of Molecular Biology.
“The UK has a world-class science base and the potential to lead globally in developing the next generation of medicines and vaccines,” commented Richard Torbett, Chief Executive, ABPI. “But without a more competitive environment for investment, we risk losing out to other countries making bold moves to attract internationally mobile investment.”
Barriers have been seen to weaken the country’s competitiveness. The UK devotes only 9% of healthcare spending to medicines, compared with 20% in Japan and 17% in Spain. Just 37% of new medicines are fully available, compared with 90% in Germany – with more than 60 medicines or indications delayed or not launched between 2019/20 and 2022/23.
“The UK has the potential to unlock billions in additional investment in early stage R&D, ensure patients and the NHS can benefit from access to cutting-edge clinical trials, and attract major capital investment in R&D and medicines manufacturing facilities – all of which directly support the government’s health and growth missions,” continues Torbett. “First and foremost, we need to create a commercial environment that rewards pharmaceutical innovation fairly and brings its benefits rapidly to UK patients.”
Several industry stakeholders also provided comments on the release, including Russell Abberley, President, ABPI and VP & General Manager, Amgen, who said that “sustained commitment and decisive action are needed to tackle” the issues presented in the report. “Only then can we unlock the full potential that a thriving life sciences ecosystem can deliver for both patients and the UK economy.”
