What does 2017 have in store for the UK’s life sciences industry?

What does 2017 have in store for the UK’s life ...

Chris Stirling, KPMG’s global head of life sciences, gives his predictions for the UK industry in 2017.

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What does 2017 have in store for the UK’s life sciences industry?

Chris Stirling, KPMG’s global head of life sciences, gives his predictions for the UK industry in 2017.

M&A

“We are expecting to see the high level of M&A activity continue throughout 2017. Contrary to what some were predicting, we did not see a slowdown in M&A activity in the life sciences industry after the Brexit vote and the industry has weathered the storm well so far.

Regulation

“However, it’s not going to be plain sailing and the industry does have concerns going into 2017. Life sciences companies are obviously under pressure from shareholders to grow the business, but the industry is facing increasing scrutiny by regulatory authorities and there are many more hurdles to go through to get drugs approved. 

“One very relevant regulatory issue for UK businesses is with regard to wholesaler licences. Life sciences has its own version of ‘regulatory passporting’ and in order to be able to trade in the industry, companies will need to have the relevant licences in each EU jurisdiction.

Research and development

“2016 saw the Department of Health inject £816m for research into mental health, dementia and antimicrobial resistance. Of course we hope that this will lead to some serious game changers, but there’s a risk this cash injection won’t be enough to plug the gap that could be left from EU funding and researchers being withdrawn from the UK as a result of the Brexit vote. 

“Instead we could see the industry turning to more innovative and informal methods of funding this year. We’ve already seen evidence of this in the last week, with investors backing an unapproved drugs database for terminally ill this year, MyTomorrows, which will foster access to drugs for areas of unmet clinical need.”

-ENDS-

For more information, please contact:

Helen Jackson, corporate communications assistant manager

T: +44 (0)118 373 1479

M: +44 (0)790 111 5649

E: Helen.jackson@kpmg.co.uk

Follow us on twitter: @kpmguk

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff.  The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.

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