UK Unveils Life Sciences Strategy – Pharma Industry Cautious Despite Boost for R&D
By Fidelis News | 16 July 2025 | UK News – Science & Industry
The UK government has launched a major strategy aimed at strengthening its life sciences sector, with new measures designed to speed up clinical trials, attract investment, and accelerate drug innovation. While pharmaceutical leaders such as GSK, Moderna, and BioNTech welcomed the proposals, industry experts remain cautious due to ongoing concerns over the UK’s drug pricing system.
The initiative, announced as part of the government’s broader industrial plan, is intended to position the UK as a “science superpower.” However, the Association of the British Pharmaceutical Industry (ABPI) and several major firms warn that without reform to how new medicines are priced and funded in the NHS, the strategy may not be enough to revive the UK’s global competitiveness in the pharmaceutical space.
🧪 What’s in the Strategy?
The life sciences plan includes:
A faster, more streamlined clinical trial process, with an aim to reduce the average approval time for new drug trials.
Investment in laboratory infrastructure, particularly to support early-stage biotech and academic partnerships.
Regulatory reform to simplify the process for bringing new treatments to market.
A renewed push to attract international investors and pharmaceutical companies to the UK.
💬 Industry Reaction
Executives at GSK, Moderna, and BioNTech voiced support for the strategy’s focus on R&D. GSK’s Chief Scientific Officer, Tony Wood, noted that the ability to quickly launch clinical trials was essential to maintaining the UK’s competitive edge.
However, the absence of AstraZeneca from the government’s launch materials was telling. The British-Swedish pharmaceutical giant has recently been weighing a shift of its primary listing to the United States—a move that would mark a blow to the UK’s efforts to retain top-tier pharma firms.
ABPI’s Chief Executive, Richard Torbett, said:
“We’ve long said that the UK must be the place where innovation is both created and adopted. Right now, we’re good at the first and slow at the second.”
He warned that the UK’s medicines pricing system, which caps what the NHS will pay for new drugs, often discourages companies from launching new treatments domestically.
🏛 Government Stance
The government has promised continued dialogue with the pharmaceutical sector. Ministers say the life sciences strategy is part of a wider growth agenda, which includes deregulation and support for high-potential industries.
Finance Minister Rachel Reeves connected the strategy to her broader economic reforms, sometimes called the “Leeds Reforms.” These aim to overhaul regulation in key sectors like finance, energy, and biotech to encourage investment.
The government also cited post-Brexit flexibility as a competitive advantage, enabling the UK to adjust regulation faster than EU competitors.
⚠ Ongoing Risks and Challenges
While the sector welcomed steps to boost research and trial infrastructure, it stressed that unless the Voluntary Scheme for Branded Medicines Pricing and Access (VPAS) is reformed, the UK will remain a second-tier launch destination for new medicines.
Other concerns include:
Skills shortages in biotech and medical data science.
Investor uncertainty over the future regulatory landscape.
The need for stable, long-term funding for public-private partnerships.
Analysts warn that real impact will depend on whether the NHS adopts new treatments more rapidly and whether clinical trials increase significantly in number and speed.
🔍 International Comparisons
The UK faces stiff competition from global life sciences hubs such as:
The United States, with deep capital markets and generous tax credits.
Germany, which maintains strong state-pharma collaboration.
Singapore, which has aggressively courted biotech investment in Asia.
If drug companies continue to prioritise these regions, Britain could struggle to maintain its relevance in the global pharma landscape.
🔮 What’s Next?
The NHS trial acceleration programme will begin its rollout later this year.
Government and ABPI negotiations over VPAS reform are ongoing, with an update expected by autumn.
Industry watchers will be closely following whether clinical trial volumes rise in Q4 2025.
