Key Takeaways
- Eli Lilly is pausing plans for its U.K. Gateway Labs due to concerns about the local biotech industry’s outlook.
- The company previously announced an investment of £279 million, intended to focus on health challenges, including obesity.
- This decision follows the suspension of shipments for its weight loss drug, Mounjaro, amid pricing strategy changes.
Eli Lilly Reconsiders U.K. Gateway Labs
Eli Lilly has put plans for its U.K.-based Gateway Labs on hold, primarily due to uncertainties surrounding the biotechnology sector’s future in the country. A spokesperson confirmed that the company is reassessing its investment as it seeks further clarity on the life sciences environment in the U.K.
Initially, Eli Lilly had announced intentions to establish a Gateway Labs site in the U.K., marking it as the first European location for this initiative. Gateway Labs are intended to serve as biotech accelerators, providing lab space and support for researchers. However, the pharmaceutical company has decided to pause these plans, largely attributing this decision to the low prices set by the National Health Service (NHS), as reported by The Pharmaceutical Journal.
This potential site was part of a broader £279 million (approximately $378 million) investment into the U.K.’s life sciences sector. This funding was negotiated through an agreement with the U.K. government, aiming to address significant public health challenges, particularly obesity. A Lilly spokesperson clarified that the current halt relates specifically to the Gateway Labs initiative and does not encompass the entirety of the £279 million commitment.
Eli Lilly already operates five Gateway Labs across various locations, including two in South San Francisco, one in San Diego, one in Boston, and one in China. The decision to pause the U.K. project comes on the heels of Lilly’s recent actions regarding its weight loss drug, Mounjaro (tirzepatide). The company had suspended shipments to the U.K. at the end of August, concurrent with plans to increase the medication’s list price by as much as 170%.
This move presents a significant setback to the U.K. biotech industry, which has already faced challenges in recent months. Merck’s announcement of an R&D exit, including the cancellation of a £1 billion London research center, has further underscored concerns regarding the country’s competitiveness in biotech.
As Eli Lilly and other pharmaceutical leaders navigate these complex dynamics, the outlook for the U.K. biotech landscape remains uncertain. Ongoing discussions regarding government funding and pricing models will play crucial roles in shaping the future of biopharmaceutical investments in the region.
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