Eli Lilly Pauses UK Biotech Incubator Plans Amid Concerns Over NHS Drug Pricing

Eli Lilly has paused the buildout of its planned UK Gateway Labs biotech incubator, citing concerns over low drug prices paid by the UK's National Health Service (NHS) and broader uncertainty in the UK life sciences environment13.

The Gateway Labs project was to be Lilly's first such site in Europe, offering lab space and support for biotech startups and researchers as part of a £279 million (about $378 million) investment deal signed with the UK government in 202435.

Lilly executives emphasized the UK's strong academic and scientific environment but warned the country is becoming an 'international outlier' in attracting pharmaceutical investment due to limited NHS uptake of new drugs and insufficient government spending13.

A recent report from the Association of the British Pharmaceutical Industry (ABPI) highlighted industry strengths in the UK but also echoed concerns that current drug pricing discourages R&D investment13.

This move follows other setbacks in the UK's biotech sector, including Merck's recent cancellation of a major R&D center, and comes shortly after Lilly halted UK shipments of its obesity drug Mounjaro in anticipation of a price increase3.

Sources:

1. https://pharmaceutical-journal.com/article/news/eli-lilly-pausing-investment-in-uk-as-report-warns-against-limited-nhs-uptake-of-new-drugs

3. https://www.fiercebiotech.com/biotech/eli-lilly-reconsiders-uk-biotech-incubator-pauses-buildout-report

5. https://www.bioxconomy.com/investment/from-east-to-west-lilly-plans-incubators-in-china-and-uk