Beyond GSK: A Look at the Broader 'Pharma Exodus' from the UK

In a significant development for the global pharmaceutical industry, British drugmaker GSK has pledged a massive $30 billion investment over the next five years in its U.S.-based research and development (R&D) and supply chain infrastructure. The announcement comes as the UK’s own life sciences sector faces a series of deepening challenges, leading many to view GSK's strategic move as a blow to the country's ambitions to be a global scientific leader.

The investment, which includes a new $1.2 billion commitment for next-generation biologics factories and the integration of artificial intelligence across existing U.S. manufacturing sites, is aimed at bolstering GSK’s position in its largest and most lucrative market. While GSK’s CEO, Emma Walmsley, insists the new facilities will “bridge R&D and manufacturing across both the U.S. and UK,” the sheer scale of the American investment, which dwarfs GSK’s annual UK R&D budget of around £1.5 billion, is seen as a clear signal of the company's future focus. The move is also influenced by U.S. government efforts to encourage more domestic drug production and by the threat of new import tariffs on the industry.

Meanwhile, the UK’s pharmaceutical industry is grappling with a series of structural issues that have made it less competitive on the international stage.

Data from the Association of the British Pharmaceutical Industry (ABPI) reveals that the country’s R&D investment has fallen behind global trends since 2018, with foreign direct investment in the life sciences sector plummeting by 58% between 2021 and 2023. This decline is largely attributed to high and unpredictable "clawback" rates on pharmaceutical revenues, which reached 23.5% on newer medicines in 2025. This rate is significantly higher than those in other major European markets, deterring much-needed capital.

The challenges extend beyond financial incentives. The UK has also seen a decline in its performance for clinical trials, with its global ranking for Phase III trials falling from fourth to eighth. This weakens the country's ability to develop new medicines and attract investment. Industry leaders also cite slow patient access to new drugs and the undervaluation of innovative medicines by the National Health Service (NHS) as key issues. The “pharma exodus” has already begun, with other companies like Merck and AstraZeneca reportedly scaling back their UK presence in favor of more favorable environments.