UK pharmaceutical and health researchers have warned that the country is missing out on up to £15 billion per year in potential growth due to overseas competition.
This includes £10.8 billion per annum lost from UK pharmaceutical exports, with the UK's share of the global market halving from 2013 to 2023, as well as £2.6 billion per annum loss from an 8% drop in UK clinical trials each year since 2017, according to a report from SCI, the UK’s science and innovation charity.
Declines in clinical trial activity have resulted in a further £2.6 billion lost, while reduced foreign direct investment has cost the UK an additional £1.1 billion per year lost from potential incremental investment.
Sharon Todd, chief executive of SCI, said: "The UK has all the ingredients for a flourishing life science sector – world class manufacturers, leading universities and research institutions, and unparalleled scientific expertise and know-how."
But she said the UK is "losing out to international peers who are doing far more to keep valuable life science businesses within their borders" and the government "must heed this wake-up call and act to save the UK’s life science sector before it is too late".
The report, entitled ‘Unlocking Value in Life Sciences’, said underinvestment has hindered the UK’s ability to convert research into commercial success, with employment in pharmaceutical manufacturing remaining flat in the UK over the past ten years in contrast to a 20% rise across Europe.
It estimated that if the UK had matched the growth seen in Europe, around 10,000 more jobs would be supported by the UK life sciences sector, which already employs more than 300,000 people and contributes around £34 billion in gross value added.
Despite a strong research base, SCI said the UK has lost ground due to slow regulatory timelines, outdated systems, and rising costs. It said the country’s global share of industrial clinical trials has fallen from around 11% to 8%.
Ahead of the Spring Statement this week and the government's spending review, the SCI called on the government to take action to improve competitiveness, with recommendations include creating new incentives for scale-up firms, fast-tracking Phase 3 clinical trials, streamlining the MHRA, and leveraging NHS data for real-world studies.
The organisation said these reforms would help reverse current trends and unlock the UK’s life sciences potential.