The government’s newly unveiled Life Sciences Sector Plan lays out an ambition to position the UK as a global life sciences leader by 2030.
But the pharmaceutical industry has pushed back, warning that without major reforms to medicine funding and pricing, the strategy risks underdelivering.
Published on Wednesday as part of government’s Industrial Strategy, the 10 year plan pledges over £2bn in government support to drive innovation, investment, and NHS reform.
Yet the Association of the British Pharmaceutical Industry (ABPI) has said that unless the UK addresses its “long term disinvestment in innovative medicines”, the strategy’s headline goals will be out of reach.
The strategy’s ambition is for the UK to be Europe’s top life sciences economy and globally third behind only the US and China, by 2030.
The UK already generates £17.6bn in direct value from pharmaceuticals, with a further £45bn in spillover from R&D.
But growth has slowed and investment has lagged behind international rivals.
In a statement, ABPI chief executive Richard Torbett said the government’s plan tightly recognises the sector’s value but fails to confront the key issue.
He said: “For too long, the UK has sought to be the place where innovation happens, but not the place where it is used”.
Torbett pointed to a growing gap between drug approval and patient access in the UK.
NHS uptake of new medicines remains low compared to peers, despite being a major research hub.
“Without change, the UK will continue to slow slide down international league tables for research, investment, and availability of new medicines”, he added.
At the heart of the sector’s concern is the Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG).
Under current terms, companies are required to return between 23.5 per cent and 35.6 per cent of NHS revenues on branded medicines – effectively a clawback on sales.
On the other hand, similar clawback schemes in major European markets range from 5.7 per cent in France to nine per cent in Ireland.
Industry leaders say this disparity is making the UK less attractive for global pharma firms when deciding where to launch or invest.
While VPSG is designed to control NHS costs, critics say the high rates now risk undermining the government’s own growth agenda.
Many in the sector welcomed the government’s renewed focus on life sciences.
Companies such as Smith & Nephew, Illumina and BioNTech praised the alignment between industrial policy and innovation needs.
