Britain’s ambitions to build a world-leading life sciences industry are being undermined by falling investment and mounting criticism from global pharmaceutical groups, according to a stark new report.
The Association of the British Pharmaceutical Industry (ABPI), working with PwC, has warned that the UK is “losing the race” to attract foreign direct investment, citing a toxic mix of poor access to innovative medicines, low government support and unpredictable NHS pricing clawbacks.
The 50-page study benchmarked the UK against international peers on 48 competitiveness indicators and found foreign investment in life sciences had slumped to £795 million in 2023—58 per cent below 2017 levels—pushing Britain down to seventh place in global rankings from a high of second only two years earlier. Pharmaceutical R&D has also slowed markedly, growing at just 1.9 per cent annually since 2020, against a global average of 6.6 per cent.
The warnings come as Merck scrapped plans for a £1 billion London research hub and cut 125 jobs, while AstraZeneca abandoned a £450 million vaccine site expansion in Liverpool. Eli Lilly and Sanofi have also sounded the alarm, with UK operations paused or scaled back until government policy becomes clearer. Executives say the sector’s world-class research infrastructure, academic institutions and thriving biotech ecosystem are being overshadowed by rising regulation and diminishing confidence in the UK market.
The findings threaten to undercut Labour’s industrial strategy, which has identified life sciences as one of eight key growth sectors. Ministers insist Britain remains the most attractive destination for life sciences investment, pointing to new funds and partnerships, but industry leaders warn urgent action is needed if the UK is to compete with the US, China and European rivals for the next generation of drug discovery and development.