A “chilling effect” caused by UK government policy is freezing pharmaceutical research and development, with several major companies halting or drastically reducing their activities in the country. The combination of low prices, high costs, and policy uncertainty has created an environment where long-term R&D investment is seen as too risky.
This chill is most evident in the recent decisions of industry leaders. MSD has abandoned its flagship £1bn London R&D center. Sanofi has cut its UK clinical trials—a key part of the R&D process—by 50%. Eli Lilly has also put its plans for an R&D incubator lab on ice.
Industry executives trace this chilling effect back to specific policies. They point to the UK’s low spending on new medicines, which signals a lack of market appetite for innovation. They also criticize the rigid NICE pricing thresholds, which haven’t been adjusted for inflation since 1999, and a high “clawback” tax on revenues.
To thaw this investment freeze, the government is being urged to provide a clear and competitive long-term strategy. Prominent scientist Sir John Bell has warned that without such a plan, the current chill could turn into a permanent winter for the UK’s once-thriving life sciences R&D sector.