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U.S. policymakers should take note as biopharmaceutical companies pull back on investments in the U.K., Eli Lilly
Chief Executive Officer Dave Ricks said in an interview with CNBC.
Lilly recently paused plans to create a biotech incubator called Gateway Labs in the U.K., joining other biopharma companies that have put investments in the country on hold amid concerns about drug pricing and other policies in the U.K. The country controls the price of branded medicines in a few ways, including by requiring companies to pay a rebate if the government spends more than expected on branded drugs. This year’s rate of about 23% was higher than anticipated, prompting widespread pushback from the industry.
“The U.K. has been on a long, slow glide path from a leader in biopharmaceuticals to really a laggard, and that’s happened over the last 20 years through a number of policy mistakes,” Ricks said. “The most important one is that their market is really unattractive for us, and it’s become more unattractive every year.”
