Boosting Britain’s Life Sciences Sector: The Key to Success

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Shortly after celebrating the 70th anniversary of British researchers’ discovery of the double helix, Prime Minister Rishi Sunak unveiled a plan to transform the UK into a scientific “superpower” and emphasized that science and innovation have been in the country’s DNA for decades. However, the future does not look as promising for the life sciences industry, which has been a strong suit for the UK. Despite Merck’s plans to build a £1bn research center in London, the company’s research chief recently cautioned that the UK needs to become more welcoming to pharmaceutical companies. While historical achievements and kind words can only go so far, the UK government must deliver comprehensive solutions to revitalize the country’s pharmaceutical competitiveness.

Companies have identified UK drug pricing as a disincentive for investment. A voluntary scheme implemented in 2019 limits the growth in NHS spending on branded medicines to 2% per year, with drugmakers required to reimburse any excess. The significant increase in spending during the pandemic means that drug companies will have to repay £3.3bn, equivalent to 26.5% of their sales this year. This amount is double the clawback required in Germany and triple that in France.

The voluntary scheme is set to expire at the end of the year and will need to be renegotiated. Otherwise, companies will revert to a similar statutory system. This presents an opportunity to revise the arrangement and bring the UK more in line with its EU counterparts. Failure to do so could cost the UK £5.7bn in lost research and development investment between 2024 and 2028, according to a report commissioned by the Association of the British Pharmaceutical Industry. However, striking a balance will be crucial to avoid increasing NHS costs.

The UK is also experiencing a decline in its global rankings for conducting clinical trials. Recently, Novartis cancelled a major trial for a cholesterol drug. While the NHS provides access to a large population for testing treatments, clinical trials are conducted at the regional level, which adds complexity and expense. A centralized approach, as demonstrated during the pandemic through the Recovery trial involving over 170 hospitals, could be more effective. The upcoming award of a £480mn contract to build a “federated data platform” for NHS England, with Palantir of the US as the frontrunner, could be a game-changer. By addressing privacy concerns, this platform could enable the integration of millions of health records with genetic data, positioning the UK as a leader in conducting large-scale clinical trials and developing innovative treatments. The 100,000 Genomes Project, launched in 2012 to sequence NHS patients’ genomes and study their links to health and disease, has already attracted international interest.

Brexit continues to pose challenges. The Medicines and Healthcare products Regulatory Agency, the medicines watchdog, has experienced funding cuts and lost access to a larger regulatory market. Although delays have diminished, more efforts are needed to restore the MHRA’s previous position. This includes establishing alliances with regulators in countries like Australia.

Despite these challenges, there are positive developments. The UK’s agreement to rejoin the EU’s €95.5bn Horizon Europe science initiative in September marked a return to collaboration. Chancellor Jeremy Hunt also announced a £650mn “war chest” for life sciences in May, intended to improve clinical trials and incentivize investments from pension funds.

The government’s recently unveiled “Life Sciences Vision” for 2021 aims to build on lessons learned from the pandemic, leverage UK genomic data, and create a business-friendly environment. It is crucial for the government to demonstrate that it can not only set ambitious targets but also undertake detailed work to achieve them. If the UK is to regain its position as a leader in life sciences, it will need to rely on more than just its historical scientific achievements.