ABPI urges UK Treasury to act on life sciences investment decline

The Association of the British Pharmaceutical Industry has urged the UK government to use the upcoming Budget to address what it describes as a decade-long slide in life sciences investment and competitiveness. The trade group said foreign direct investment in the sector has fallen 58% since 2021, with pharmaceutical R&D spending down nearly £100 million ($128 million) in 2023.

In its pre-Budget submission, the ABPI called for reforms to cost-effectiveness thresholds used by NICE, arguing they are outdated and discourage innovation. It also urged a reduction in the UK’s high branded-medicine rebate rates and proposed aligning them with other European markets. The group estimates the country could recover up to £3.4 billion in R&D investment by 2028 if competitiveness is restored.