A top executive from the French pharmaceutical giant Sanofi has issued a stark warning, labeling the UK a “terrible place” to sell medicines. Paul Naish, the company’s UK head of market access, stated that Britain is at a “critical point,” struggling to maintain its status as a leader in life sciences despite its world-class universities and scientists.
This harsh critique comes as major drugmakers scale back their UK operations. MSD, known as Merck in the US, recently abandoned its plans for a £1bn research facility in London. Similarly, Sanofi has reduced its clinical trials in the country by 50% over the last few years and has put any significant new investment on hold, awaiting a more competitive environment.
The core of the issue, according to industry leaders, is a combination of low spending and outdated policies. The NHS’s expenditure on medicines has dropped to just 9% of its total budget, significantly lower than European counterparts like Germany (14%) and Italy (17%). Furthermore, the pricing thresholds set by the National Institute for Health and Care Excellence (NICE), which determine drug affordability, have not been updated since 1999.
Industry bodies are now urging the government to create a clear roadmap for the future. They are calling for an increase in spending, an adjustment of NICE thresholds to account for inflation, and a reduction in the “clawback rate,” where companies must repay a large portion of their UK revenues to the NHS. Without these changes, experts like Sir John Bell warn that more pharmaceutical companies will cease investing in the UK.