The global pharmaceutical industry has issued a clear ultimatum to the UK government: fix the broken market for new medicines, or we will take our investment elsewhere. This stark message comes as companies like MSD, Sanofi, and Eli Lilly take concrete steps to reduce their UK footprint, citing an uncompetitive and expensive environment.
The industry’s frustration was voiced by Sanofi’s Paul Naish, who labeled Britain a “terrible place to sell medicines.” This is no longer a private complaint but a public declaration of intent. Sanofi has cut its UK clinical trials by half, MSD has axed a £1bn research hub, and Eli Lilly has frozen plans for a new London lab.
The list of required fixes is specific. Companies are demanding that the UK increase its spending on medicines to match European rivals, overhaul the 25-year-old NICE pricing guidelines, and slash the revenue “clawback” tax to single-digit levels. They argue these changes are essential to make the UK a viable market.
With drugmakers having recently rejected the government’s latest pricing offer, the ball is firmly in the ministers’ court. The industry is watching and waiting for a “proper plan,” making it clear that without fundamental reform, the current exodus of capital and research will only accelerate.
