UK on Back Foot as Pharma Compares It Unfavourably to Germany, US

The UK is finding itself on the back foot in the global life sciences race, with pharmaceutical companies explicitly comparing it unfavorably to competitors like Germany, the US, Italy, and Spain. The key difference lies in spending, where the UK’s 9% outlay of its healthcare budget on medicines pales in comparison to its rivals.
Germany dedicates 14% of its healthcare spending to medicines, the US 15%, and Italy and Spain 17%. This disparity, highlighted by executives like Sanofi’s Paul Naish, makes the UK a less attractive market for launching new and innovative treatments, directly impacting investment decisions.
This competitive disadvantage is fueling a corporate exodus. Sanofi recently closed a UK lab and transferred the work to Boston. Eli Lilly has paused a London lab project while building two new ones in China and operating three in the US. These moves show capital flowing to countries with more supportive commercial environments.
To reverse this trend, the UK government is being urged to create a roadmap to bring its spending and policies in line with international standards. Without closing this gap, the nation’s ambition to be a science superpower will be undermined as companies continue to vote with their feet.