Pharmaceutical industry has 'lost confidence' in UK

Pharmaceutical industry has 'lost confidence in UK'

Reddit Stumble

 

Also In The News

Second-half Spurs comeback dents Chelsea's title challenge
Tottenham Hotspur came back from 3-1 behind in the second half to salvage a 4-4 draw against Chelsea at White Hart Lane.

• United extend lead with comfortable win against Bolton
• Boyd strike earns Rangers replay with Partick Thistle
• Collingwood advises England batsmen to stay relaxed

 

Thursday, 20, Mar 2008 01:31

The pharmaceutical industry has lost confidence in the UK as a place to do business, according to a survey.

In research published by the Association of the British Pharmaceutical Industry (ABPI) and the Confederation of British Industry (CBI), three quarters of the UK-based pharmaceutical companies surveyed said they had little confidence in the current environment.

In a survey of over 100 companies, only one per cent expect the situation to improve – and 83 per cent expect it to deteriorate.

In addition, more than a third of companies (35 per cent) were expecting to reduce the level of investment in research and development, currently standing at nearly £4 billion a year.

ABPI president Nigel Brooksby said: "Stability is essential for business confidence and investment, and the UK market has long been a springboard for international success for many global companies in the pharmaceutical sector.

"But the UK now uses fewer innovative medicines than the rest of Europe, and the government has broken the five-year agreement on pricing, made in 2005 – an agreement that provided that very stability on which our success largely depends."

A spokesperson for the Department of Health said: "It is in all our interests to encourage research and reward innovation, but we also want to ensure that the taxpayer gets value for money and patients continue to benefit from innovative products at a reasonable price.

"Whilst we recognise the benefits that PPRS agreements have brought to the UK over the past 50 years, ministers believe it important to update the system so it is fit for purpose in the modern world and contributes to achieving greater efficiency in NHS expenditure."

According to the CBI, the pharmaceutical sector directly employs some 70,000 people, is the UK's leading exporter and accounts for a quarter of all UK industrial research and development.