UK Pharma Investment Shows Signs of Recovery After a Difficult 2025

Key Points

• Pharmaceutical companies have committed an additional £2 billion to UK investment since September 2025.
• New investments cover areas such as AI-powered drug discovery and large-scale medicines manufacturing.
• Government policy changes include a higher NICE cost-benefit threshold and a commitment to raise innovative medicines investment to 0.6% of GDP.
• AstraZeneca and Moderna are among the companies announcing major UK investments.
• The UK still faces challenges around research output, science graduates and competition from other major pharmaceutical markets.

The UK pharmaceutical industry is showing signs of renewed investment after a difficult 2025. According to Healthcare Today, pharmaceutical companies have committed an additional £2 billion to the country since September last year, covering areas such as AI-enabled drug discovery, research and development, and medicines manufacturing.

The investment comes after a period when pharmaceutical companies raised concerns about the UK’s position as a destination for global drug development and manufacturing. Recent government commitments and closer cooperation with the industry are now being credited with helping improve the investment picture.

One important change has been an increase in the baseline cost-benefit threshold used by NICE, the body that evaluates health technologies for use in the NHS. The government has also committed to increasing UK investment in innovative medicines to 0.6% of GDP, according to the Association of the British Pharmaceutical Industry, or ABPI.

The industry had faced pressure from changes to the UK’s medicines pricing system. The payment rate for newer medicines under the Voluntary Scheme for Branded Medicines Pricing and Access was reduced to 14.5%, compared with 22.9% the previous year. The change contributed to concerns about the environment for pharmaceutical companies operating and investing in the country.

Now, several major companies are making significant commitments. AstraZeneca has announced £300 million in funding for operations in Cambridge and Macclesfield, including the use of artificial intelligence in drug discovery. Moderna has also opened an innovation centre in Oxfordshire and committed £1 billion to UK research and development over the next decade.

The ABPI says the UK continues to have several important advantages for pharmaceutical investment. Its science base, domestic talent and intellectual property framework remain competitive internationally. However, the organization also warns that some of these strengths are under pressure and can take years to rebuild if they are lost.

Research performance is one area of concern. The ABPI says the UK has fallen behind in research output as China has strengthened its position. The proportion of UK students graduating in natural sciences, mathematics and statistics has also declined, potentially creating longer-term challenges for the country’s research workforce.

At the same time, the industry group says some of the problems that had discouraged investment are beginning to receive attention. These include limited and slow access to innovative medicines, underinvestment in new treatments and high clawback rates on company revenues.

Richard Torbett, chief executive of the ABPI, said the UK had been losing ground in the global competition for pharmaceutical investment a year ago, but described the current situation as more hopeful. He also stressed that investors make decisions over decades and will be watching to see whether the government's commitments translate into long-term policy delivery.

That may be the bigger issue for the UK pharmaceutical sector now. New investment announcements suggest companies are willing to put money into British research and manufacturing, but maintaining that momentum will depend on how consistently the country delivers on its policy commitments.

For the UK, the potential payoff goes beyond pharmaceutical companies themselves. The ABPI says sustained investment could support high-value jobs, economic growth and faster availability of new medicines for NHS patients. The next stage will be turning the recent investment announcements into a longer-term trend.