UK has gone from a leader to a laggard in biopharma, Eli Lilly CEO says

Core Viewpoint - Eli Lilly's CEO, Dave Ricks, highlighted a significant pullback in biopharmaceutical investments in the U.K. due to unfavorable drug pricing policies and regulatory concerns, indicating a shift in the competitive landscape for global investments in the sector [1][2][3]. Investment Climate - Eli Lilly has paused plans for a biotech incubator in the U.K., joining other biopharma companies in halting investments due to concerns over drug pricing policies, including a rebate requirement when government spending exceeds expectations [2][3]. - The U.K. has seen a decline in its attractiveness for biopharmaceutical investments over the past 20 years, with Ricks stating that the country is now viewed as a laggard in the industry despite its strong academic base [3]. Policy and Regulation - Discussions with U.K. policymakers regarding changes in intellectual property and regulation have been paused while awaiting a response from the British government, with potential trade negotiations between the U.S. and U.K. seen as a possible catalyst for change [4]. - The U.K. has prioritized controlling medicine costs, which contrasts with recent U.S. legislative changes allowing Medicare to negotiate drug prices, raising concerns about the sustainability of overseas markets for U.S. companies [6][8]. Market Dynamics - Ricks emphasized the need for U.S. government support to address challenges in overseas markets, particularly in Europe, where pricing policies have not changed significantly [8]. - Eli Lilly recently increased the price of its drug Mounjaro in the U.K., although this is not expected to significantly impact global revenue, highlighting the limitations of the U.K. market in terms of drug coverage and access [8][9]. Competitive Landscape - The U.S. administration's pricing policy aims to increase drug prices in developed countries while lowering them in the U.S., a goal that the industry supports but finds challenging to implement in practice [7][8]. - The lengthy approval processes for new medicines in Europe, including the U.K., contribute to delays in market entry, which can hinder the profitability and innovation of pharmaceutical companies [9].