The perception of the UK within the global pharmaceutical industry has shifted dramatically, from a key strategic partner to an adversarial and difficult market. This changing view is driving a reassessment of the UK’s role in the global operations of major drugmakers, leading to a significant reduction in investment.
This souring relationship is evident in the recent public statements and actions of industry leaders. The description of the UK as a “terrible place” by a Sanofi executive would have been unthinkable just a few years ago. It reflects a deep frustration with a government that the industry feels is no longer supportive of innovation.
This adversarial climate is a direct result of policies on pricing and spending. The UK’s insistence on maintaining low medicine expenditure, rigid pricing rules from 1999, and a high revenue “clawback” is seen by the industry not as partnership, but as a punitive approach that penalizes success.
To repair this broken relationship, the government must move beyond its current stance. It needs to reopen negotiations with a genuine willingness to create a more competitive and collaborative environment. Without this, the UK will continue to be viewed as a market to be endured rather than embraced.