The Association of the British Pharmaceutical Industry (ABPI) has called on the UK government to prevent life sciences ‘falling behind’ ahead of the Autumn Budget. 

In a statement submitted this week, the ABPI urged the UK government to revive its investment in the life sciences sector.  

“The UK has historically been home to one of the world’s leading life sciences ecosystems, and the government has set out an ambition to increase the growth and investment in this sector,” the statement reads.  

“However, as the government recently recognised, over the last 10 years there has been a “decrease in the investment and support” for our industry, and government agrees that it now “has to act” to stop this trend.” 

The ABPI pointed to data showing that direct investment in the UK’s life sciences sector fell by 58% from £1.9 billion ($2.5 billion) in 2021 to £795 million ($1 billion) in 2023. The statement also highlights that pharmaceutical industry investment in R&D fell by nearly £100 million ($131 million) in 2023, with the UK lagging behind global trends. 

“The UK has the talent, science base and heritage to lead the world in life sciences, but right now we are falling behind,” said Richard Torbett, Chief Executive of the ABPI.

“To change course, the Treasury and the Department of Health must work together to create the right conditions for investment in innovation.  

“If we act now, we can restore the UK’s global standing, unlock billions in R&D investment, and deliver better outcomes for patients and the economy alike.” 

Recommendations could make the UK more competitive

According to the ABPI, the immediate priority should be for the UK to address the low cost-effectiveness thresholds used by the National Institute for Health and Care Excellence (NICE). The ABPI has urged the UK government to reduce the UK’s high and unpredictable branded medicines revenue rebate rates to single digits, on par with other European countries. 

In its statement, the ABPI outlined five key recommendations for the Budget to improve investment. This included returning UK investment in innovative medicines to internationally competitive level, maintaining investment incentives and improving the Global Talent visa’s competitiveness.  

Other recommendations included updating the Green Book methodology to account for the full value of investment into medicines manufacturing and restoring the Trading Fund Status of the Medicines and Healthcare Regulatory Agency (MHRA).  

The ABPI has said it would work with the UK Treasury and Department of Health and Social Care (DHSC) to create the conditions for greater investment in innovative medicines and to improve the UK’s commercial environment. 

The association estimates that, if the UK became more competitive, the country could recover between £2.2 ($2.9) and £3.4 ($4.5) billion of R&D investment by 2028, alongside major productivity and health benefits for the population. 

 

Bruno Quinney, Content Team, DDW