The UK government will improve manufacturing and commercialisation as it seeks to maximise the value of the life sciences sector growth for the country’s economy.
In a new Life Sciences sector growth plan, the government established a six-point action plan to ensure the sector achieves its projected value rise of £41 billion, or a 165% increase by 2035. The government’s goal is to make the UK the leading life sciences economy in Europe and the third largest in the world, trailing only the United States and China.
The report highlights challenges related to commercialisation and adoption, despite strong performance in research and development (R&D). For instance, although it was the first nation to authorise a CRISPR-based treatment, the Casgevy developed by Vertex and CRISPR Therapeutics for sickle cell anaemia is mainly marketed internationally.
The government has committed £520m to enhance life science manufacturing in an effort to scale the industry. The investment, made under the Life Sciences Innovative Manufacturing Fund (LSMIF), aims to boost the UK’s manufacturing capabilities and supply chain security.
The initiative comes at a critical time, as British pharmaceutical giants ramp up their investments in the United States. GSK spent $800 million in drug substance and drug product manufacturing facilities in the United States in October 2024. AstraZeneca, which has a market capitalisation of £162 billion, is apparently planning to shift its public listing to the US stock exchange, which would deal a significant damage to the UK economy.
The government will aim to expand access to scale-up funding in order to support the industry’s growth. Domestic investors have been cautious, resulting in a lull in rising enterprises with significant economic production. The government will track investment based on the number of UK life science firms valued at more than £10 billion, the number of companies listed on the FTSE 300, and the number of initial public offers (IPOs) in the industry.
From a regulatory aspect, the Medicines and Healthcare Products Regulatory Agency (MHRA) and the National Institute of Care and Excellence (NICE) will be assisted in providing faster approvals and more efficient reimbursement.
Positive outlook and evaluation
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), emphasised the significance of minimising regulatory and financial obstacles to expedite the 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 will benefit from the initiative, which establishes a new target of 150 days or fewer for trial setup times. Ultimately, up to £600 million will be allocated to an artificial intelligence (AI)-ready health data platform, a strategy that was initiated in April 2025.
