The United Kingdom has been put to a loyalty test by the global pharmaceutical industry, and it is failing spectacularly. After years of investment and partnership, major companies are now finding the UK’s commercial environment unrewarding and are taking their business elsewhere, signaling a major breach of faith.
The failing grade is evident in the departure of key partners. MSD has rescinded its £1 billion commitment, a clear sign of its dissatisfaction. Eli Lilly has also shown its lack of loyalty by pausing its UK investment. Sanofi has made its position clear by halving its clinical trials and stating it will not be making any new commitments to the UK.
The UK failed the test on several key criteria. It has not provided a competitive pricing environment for new products, it has underfunded its healthcare system, and it has imposed a punitive clawback tax that is seen as a penalty for success. The government’s inability to offer a loyal and stable partnership has sealed its fate.
While the UK still has a strong academic base, this is not enough to command loyalty in a competitive global market. To win back the trust and investment of these global giants, the government must demonstrate its commitment through a radical and immediate change in its policies. Otherwise, it will be left with few partners in the future.