UK government targets manufacturing as it eyes £41bn life science sector growth
In a new Life Sciences sector plan, the government outlined a six-point action plan to ensure the sector reaches its forecasted value increase of £41bn, representing a growth of 165% by 2035. The government is aiming to make the UK the leading life sciences economy in Europe, and third largest in the world behind only America and China.
While excelling at research and development (R&D), the report outlines difficulties with commercialisation and adoption. For example, despite being the first country to approve a CRISPR-based medicine, Vertex and CRISPR Therapeutics' Casgevy for sickle cell anaemia is primarily commercialised overseas.
In a bid to scale industry, the government has pledged £520m to improve life science manufacturing. Outlaid via the Life Sciences Innovative Manufacturing Fund (LSMIF), the investment will aim to expand the UK's manufacturing capabilities and supply chain security.
The initiative comes at a crucial time, as British pharmaceutical companies are significantly increasing their investments in the United States. GSK invested $800m in drug substance and drug product manufacturing facilities in the US in October 2024. AstraZeneca – which has a market cap of £162bn – is reportedly plotting a move of its public listing to the US stock exchange in what would be a major blow to the UK economy.
To facilitate the industry's expansion, the government will look to increase access to scale-up capital. There has been a cautious domestic investor base, leading to a lull in emerging companies with high economic outputs. The government will measure investment by the number of UK life science companies with a valuation of over £10bn, the number of companies on the FTSE 300, and the number of initial public offerings (IPOs) in the sector.
From a regulatory standpoint, the Medicines and Healthcare products Regulatory Agency (MHRA) and National Institute of Care and Excellence (NICE) will be supported to provide faster approvals and more efficient reimbursement.
Optimism and criticism for UK life sciences
MHRA's chief executive Lawrence Tallon welcomed the news, saying: 'It's great to see the MHRA is recognised as a pivotal partner in delivering the plan's vision - by supporting innovation, protecting public health, and making the UK a global destination for innovators to research, develop and launch cutting-edge medical products.'
David Stockdale, chief executive of the British Healthcare Trades Association (BHTA) highlighted the importance of reducing regulatory and financial barriers to accelerate faster delivery of innovative MedTech solutions to patients.
"We welcome today's announcement which rightly aims to make the UK a leading hub for investment and innovation in lifesaving MedTech, an essential step if we are to improve patient care and cut down waiting times. We particularly welcome the renewed commitments to the Life Sciences Innovative Manufacturing Fund and the NHS Innovator Passports. Our members are eager to deliver their innovative products and services to patients more quickly and efficiently, and we look forward to working with the Government to make this a reality.
Clinical trials are set to benefit from the plan, with a new 150 day or lower target for trial set up times. Finally, up to £600m will be put towards an artificial intelligence (AI)-ready health data platform, a strategy already launched in April 2025.
The BioIndustry Association (BIA) said: 'The life science sector plan is right to focus on getting substantially more public and private investment in early-stage companies, improved access to data, trials and skills to help companies grow, and more streamlined regulation and market access pathways to get innovative medicines to NHS patients.'
However, the Association of the British Pharmaceutical Industry (ABPI) commented that the plan falls short of investing in innovative medicines.
Richard Torbett, Chief Executive of the ABPI, said: [The UK life sciences sector] has been struggling to remain competitive and attractive to investment. The solutions proposed are necessary and important, but they are not enough to turn around the UK's decline.
'The UK must address the core issue holding back the life sciences sector, the long-term disinvestment in innovative medicines that is increasingly preventing NHS patients from accessing medications that are available in other countries.'
The life science sector plan comes hot on the heels of the 10-year health plan unveiled for the NHS earlier this month, which placed emphasis on technology and digitalisation.
"UK government targets manufacturing as it eyes £41bn life science sector growth" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand.
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