The pharmaceutical industry has lost confidence in the UK as a place to do business to an “alarming degree” and the situation is only set to deteriorate, reveals new research.
As a result, the country is set to loose out to other locations, according to the research published by the Association of the British Pharmaceutical Industry (ABPI) and the Confederation of British Industry (CBI).
Out of 100 UK-based pharmaceutical companies surveyed, three-quarters had “little confidence” in the current environment, with 83 per cent expecting the situation to worsen and only one per cent believing it will improve.
Almost all the companies surveyed – 97 per cent – said there is now an increasing level of uncertainty within the UK pharmaceutical market environment.
The UK government’s recent decision to abandon the pharmaceutical price regulation scheme (PPRS), which controlled drug prices in the country, has heightened the industry’s uncertainty.
The pharmaceutical industry is a key strategic sector for the UK, being the country’s leading exporter, employing some 70,000 people, and accounting for a quarter of all UK industrial research and development, with £4bn a year being spent.
However, the country now uses fewer innovative medicines than the rest of Europe over the last three years over 10 per cent of jobs (8,000) in this sector have been eroded.
The industry’s propensity towards sending pharmaceutical work to offshore locations that can offer a cheaper and faster turnaround has not helped the situation.
Source: Outsourcing Pharma