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UK moves to protect pharma industry amid investment pullbacks

Pharma giants pause UK investments, prompting government action to boost medicines spending

16-Sep-2025

Key points from article :

The UK is racing to patch up relations with big pharmaceutical companies after a string of multi-billion-pound project cancellations. Science Minister Lord Patrick Vallance warned MPs that a decade of declining NHS medicine spending has left the country lagging behind global competitors, and urgent action is needed to keep firms like AstraZeneca and GSK in the UK.

Merck scrapped plans for a £1 billion London research center, while AstraZeneca paused a £200 million lab in Cambridge and previously abandoned a vaccine site project. Officials say outdated pricing models and limited investment have made the UK less attractive for life sciences, putting jobs and innovation at risk.

Vallance and health officials are pushing for reforms to ensure patients get rapid access to new medicines and to better link drug regulators with pricing decisions. Modern treatments are more expensive, and the government wants to balance affordability with innovation incentives.

Even as GSK invests $30 billion in US research and supply chains, its UK operations remain strong, with £1.5 billion spent annually on R&D. The government hopes renewed collaboration with pharma giants can boost health innovation, create jobs, and keep the UK competitive in the global life sciences race.

Mentioned in this article:

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AstraZeneca

Pharmaceutical and biopharmaceutical company that develops innovative drugs

GlaxoSmithKline (GSK)

Research and develop pharmaceutical medicines, vaccines and consumer healthcare products

Merck & Co.

Pharmaceutical company

Topics mentioned on this page:
Big Pharma, Policy
UK moves to protect pharma industry amid investment pullbacks