ABPI chief Richard Torbett has lamented that despite strengths like outstanding universities and a strong science base, the environment for pharmaceutical companies in the UK is becoming more uncertain and increasingly challenging.
In a blog on the ABPI website, he called for confronting these issues, "If we want the UK to remain a leader in life sciences".
Torbett pointed out that doing so will require "investing more on innovative medicines and making some tough policy choices that ultimately must favour growth, and not further managed decline of the sector in the UK."
He said one of the pressing concerns was the way in which medicine payment schemes have evolved.
"The rates at which companies are required to pay back a share of their revenues to the government have risen sharply. Companies now face having to pay back as much as 23.5 per cent of their newer medicines sales, far beyond what happens in other European countries, which have rates closer to seven per cent on average."
He said that such a payback scheme coupled with "the level of unpredictability over future rate, make long-term investment decisions incredibly difficult."
Torbett observed that developing medicines is a process that takes years, even decades, and requires billions in capital.
"Without confidence in a stable pricing framework, firms naturally look elsewhere to invest in research, development and manufacturing."
He said another area of concern was access to medicines for NHS patients.
"Far too often, new treatments reach people in the UK later than in comparable countries, or not at all. Just 37 percent of medicines in England are recommended for use in line with their license compared with 90 percent in Germany."
"This represents a profound missed opportunity, not just for patients who need these innovations, but for the country’s reputation as a place where medical breakthroughs can be translated into real-world benefit."
Torbett said, "Just 37 percent of medicines in England are recommended for use in line with their license compared with 90 percent in Germany. This represents a profound missed opportunity, not just for patients who need these innovations, but for the country’s reputation as a place where medical breakthroughs can be translated into real-world benefit."
He said the investment trends tell a sobering story. "Foreign direct investment into UK life sciences has fallen dramatically, dropping by more than half between 2017 and 2023. Research and development spending here has also lagged behind global growth rates."
Torbett said, "None of this reflects a lack of scientific excellence; it reflects a commercial environment that does not give companies enough confidence to commit their resources. Other countries are seizing the chance to attract investment by offering clearer, more supportive frameworks. Unless the UK takes action, we risk falling further behind."
He said striking a balance between controlling costs for the NHS and ensuring that innovation is rewarded needs to be addressed.
"Medicine budgets are understandably under pressure, but treating new medicines solely as a cost to be contained overlooks the wider picture. Innovative treatments often prevent future healthcare costs, keep people healthier for longer, and allow them to contribute more fully to society."
He added, "When the system is too narrowly focused on short-term expenditure, we lose sight of the long-term economic and social value of innovation."
"What the sector needs now is a renewed partnership between industry and government. Payment schemes must be stabilised to give companies predictability.
"Investment in medicines should be seen as an investment in the health of the nation and the growth of the economy, not just as a line in the NHS budget," he added.
