In a clear warning shot to the UK government, French drugmaker Sanofi has stated that any substantial new investment is on pause until there is “tangible progress towards making the life sciences environment internationally competitive.” This ultimatum comes as the company reveals a 50% cut in its UK clinical trials.
This stance reflects a deep-seated frustration with the UK market, which Sanofi’s UK chief has called a “terrible place to sell medicines.” The company had previously considered expanding its UK operations but has now shelved those plans, citing the high costs and poor returns on investment.
Sanofi is not alone in its hesitation. MSD has gone a step further by completely scrapping its £1bn London research center, and Eli Lilly is refusing to sign the lease on a new lab. This coordinated pause from major players underscores the severity of the industry’s concerns.
The government is now on the clock to deliver the “tangible progress” the industry is demanding. This includes a roadmap to increase spending on medicines, reforming the outdated NICE price-setting process, and reducing the burdensome “clawback” tax. Without these concrete steps, the UK risks being left behind in the global race for medical innovation.