Investment worries in UK pharmaceutical sector are emphasized in new industry report

The pharmaceutical industry in the United Kingdom is raising concerns about the impact of the medicine levy on the sustainability of the UK industry. According to a report titled 'Delivering a voluntary scheme for health and growth' by the Association of the British Pharmaceutical Industry (ABPI), the UK medicine levy reaches up to 35.6% of a company's revenue, which is significantly higher than similar schemes in other countries such as France (5.7%), Italy (6.8%), and Germany (7.1%).

The medicine levy, a government-imposed levy on revenue from branded medicines, requires companies to pay a portion of their revenue to the National Health Services (NHS). This levy has been a concern for firms within the UK pharmaceutical industry, with some claiming that it makes the country "uninvestable".

The ABPI's statement focuses on the sustainability of the current levy, with industry leaders warning that it is stifling growth and innovation in the UK. They call for immediate action from the government to address these issues, advocating for a commitment from the government to return payment rates to internationally competitive levels and to work with the industry to unlock the full potential of the UK pharmaceutical sector.

The concerns were highlighted by an unnamed expert, who expressed worries about the UK becoming less attractive for pharmaceutical investment due to the disparity in medicine levy rates. Catherine Drew, a life sciences specialist at Pinsent Masons, echoed these concerns, expressing her worries about the UK's unattractiveness, uneconomical, and uncompetitive market for global pharmaceutical companies.

The report does not discuss the potential impact of the levy on generic medicines or explicitly mention any new medicines that will not be launched in the UK due to the levy. However, the pharmaceutical industry contributes over £17.6 billion in direct gross value added (GVA) and generates £45 billion through research and development spillovers, as stated in the report.

The Organisation for Economic Co-operation and Development (OECD) has also issued a statement advocating for a reduction in the UK pharmaceutical tax rates to increase the country's attractiveness for pharmaceutical investments.

The concerns centre around the government-imposed medicine levy affecting the UK industry's sustainability. The report does not mention any specific actions the industry leaders are urging the government to take beyond returning payment rates to internationally competitive levels and working with the industry to unlock the sector's potential. The pharmaceutical industry leaders, however, warn that the current levy is causing a significant impact and calls for immediate action.

Investment worries in UK pharmaceutical sector are emphasized in new industry report