You ever walk through the streets of Manhattan and overhear someone talking about the UK’s life sciences sector? Probably not. But let me tell you, the once-glorious reputation of the UK’s life sciences is fading fast.
The ABPI is practically begging the UK government to act. Their pre-Budget submission is a call-to-arms to reverse a decade of dwindling investment. [1]
Once upon a time, the UK was a leader in life sciences. But over the past decade, investments have nosedived like disgraced Wall Street stocks. Foreign investment since 2021 plummeted 58%, and pharmaceutical R&D saw nearly a £100 million drop in 2023. [2/3]
The government even admits the decline. They’re saying, “Hey, we need to step it up!” Well, the ABPI gave them a blueprint to rejuvenate the UK as a life sciences powerhouse.
NICE‘s cost-effectiveness thresholds haven’t been updated for over 20 years. It’s like rocking a dial-up modem in 2023. This outdated approach means the value of new, life-saving meds has dropped 47% between 1999 and 2025.
The ABPI says, scrap those high branded medicine rebate rates. Let’s bring them down to levels seen in Europe’s snazzy spots.
Key Recommendations
- **Innovative Medicine Investment:** Get that investment back to a competitive level. Change NICE’s thresholds and payment schemes to keep innovation sustainable.
- **Tax Incentives:** Hold onto schemes like the Patent Box and R&D tax credits. These keep the innovation money flowing.
- **Economic Appraisal Update:** The Treasury Green Book needs to recognize long-term productivity from medicines manufacturing.
- **MHRA’s Trading Fund Status:** Let the regulator plan and invest long-term. Make it more innovation-friendly.
- **Global Talent Visa:** Cut upfront costs for international researchers with adjusted Immigration Health Surcharge. Bring the brainiacs to town.
- **VAT on Free Medicine:** Don’t apply VAT on ‘Free of Charge’ medicines under early access schemes. Keep the UK enticing for clinical trials.
Increasing the cost-effectiveness threshold could boost the UK’s competitive edge, creating a haven for pharma investments and clinical trials.
The ABPI figures that becoming competitive again could rake in £2.2 to £3.4 billion in R&D by 2028. Picture improved productivity and health benefits too. [4]
Richard Torbett, the ABPI’s big cheese, said: “We’ve got the talent, the science, and the legacy to lead. But we’re falling behind in the race.”
He adds, “If the Treasury and the Department of Health can sync up, they could set the stage for a massive comeback. The UK could reclaim its throne, draw billions in R&D, and deliver top-notch outcomes for patients and the economy.”
So, will they step up and restore the glory days, or simply let it slip through their fingers? Only time will tell.
