ABPI and NCUB: lack of competitiveness undermining UK life sciences

The recently published Association of the British Pharmaceutical Industry (ABPI) Pharmaceutical Competitiveness Framework claims the UK has lost out in investment in three key areas.

These include R&D, clinical trial delivery, and foreign direct investment which all recorded downturns in the period under review, 2017-2023.

Pharmaceutical R&D investment fell by almost £100 million in 2023, said the association. But it added that the problems began three years earlier in 2020 when annual growth dropped to 1.9% – substantially lower than the global average of 6.6%.

Meanwhile, life sciences foreign direct investment in the UK dropped nearly 60% in the period under review, from £1.893 million to £795 million, causing the country’s ranking with competitors to drop from 2nd to 7th place.

The country’s ranking for commercial clinical trials was more measured but still demonstrated gradual decline since 2018 against rivals, yet with slight improvements in 2023.

ABPI chief executive Richard Torbett said the performance issues came down to a lack of competitiveness, despite the UK’s possession of “a world-class science base and the potential to lead in the development of next generation medicines and vaccines.

“Without a more competitive environment for investment, we risk losing out to other countries making bold moves to attract internationally mobile investment,” he warned.

“But realising this potential requires industry and government working together to remove existing barriers and lean into areas of untapped strength. First and foremost, we need to create a commercial environment that rewards pharmaceutical innovation fairly and brings its benefits rapidly to UK patients.”

His comments came as two leading global pharmaceutical brands announced a halt to investment plans in Cambridge and London.

AstraZeneca said it would pause its £200 million investment in Cambridge and with it plans to create 1,000 jobs in the area. A second, Liverpool-based project was shelved at the start of the year.

And US giant Merck pulled the plug last week on what would have been a £1 billion expansion based at London’s Kings’s Cross area.

The ABPI’s criticisms were echoed by the National Centre for Universities and Business (NCUB) director of policy, analysis and external affairs Rosalind Gill.

“AstraZeneca’s pause in Cambridge, following the cancellation of its £450m vaccine investment, sends another warning signal about the UK’s ability to compete for global life sciences investment. With Merck also abandoning its £1bn discovery centre, Britain risks losing ground in a sector where it should be leading,” she stated.

“The UK has world-class science, but too often that strength does not translate into business confidence and investment. Business R&D spend fell to £50 billion in 2023 – 6% lower in real terms than in 2021 – while other countries forge ahead.”

While Merck’s move coincides with pressure from the US government for American-based companies to invest more heavily in the domestic sector, the ABPI report cited numerous areas contributing to what it said was UK life sciences’ competitive weakness.

In particular it referenced:

• Low national investment in medicine, with the UK devoting just 9% of healthcare spend compared to Germany’s 14%, Spain’s 17% and Japan’s 20%.
• Poor patient access to new medicines
• High clawback rates in newer medicines – 23.5% compared with Germany’s 7% and France’s 5.7%.
• Flagging clinical trial delivery.

Against this the ABPI cited the country’s strength in academic institutions, research infrastructure, public and charitable R&D spending and its leading role in European biotech.

Additionally, the UK’s ‘unrealised’ resources included health data and AI innovation, advanced therapies, and recent improvements to pharmaceutical regulation.

NCUB’s Rosalind Gill also cited investment “bright spots” including BioNTech’s pledge of up to £1 billion over ten years to expand UK research, Unilever investment of £80 million in fragrance R&D at Port Sunlight on the Wirral and Vishay’s plans for £250 million for semiconductors in Newport, South Wales.

Pic: Shutterstock (Alpha Tauri 3D Graphics)