Pharmaceutical industry in the United Kingdom
Encyclopedia
The pharmaceutical industry in the United Kingdom directly employs around 72,000 people and in 2007 contributed £8.4 billion to the UK's GDP and invested a total of £3.9 billion in research and development
. In 2007 exports of pharmaceutical products from the UK totalled £14.6 billion, creating a trade surplus in pharmaceutical products of £4.3 billion.
The UK is home to GlaxoSmithKline
and AstraZeneca
, respectively the world's fifth- and sixth-largest pharmaceutical companies measured by 2009 market share. Foreign companies with a major presence in the UK pharmaceutical industry include Pfizer
, whose only research hub outside of the United States
is based in Sandwich
, Kent
, Novartis
, Hoffmann–La Roche and Eisai. One in five of the world's biggest-selling prescription drugs were developed in the UK.
established the Beecham's Pills
laxative business. By 1851 UK-based patent medicine companies had combined domestic revenues of around £250,000. Beecham opened Britain's first modern drugs factory in St Helens
in 1859. Henry Wellcome
and Silas Burroughs formed a partnership in September 1880, and established an office in Snow Hill in Central London. The London Wholesale Drug and Chemical Protection Society was formed in 1867, which became the Drug Club in 1891, the forerunner of the present-day Association of the British Pharmaceutical Industry
. In 1883 Burroughs Wellcome & Co. opened their first factory, at Bell Lane Wharf in Wandsworth
, utilising compressed medicine tablet-making machinery acquired from Wyeth
of the United States. Burroughs Wellcome & Co. established its first overseas branch in Sydney in 1898.
established a compounding operation in Folkstone, Kent in Autumn 1952. Pfizer acquired an 80 acre site on the outskirts of Sandwich
in 1954 to enable the expansion of its Kent-based activities. Glaxo acquired Allen and Hanburys Ltd.
in 1958. In 1981 the bacterial infection treatment Augmentin (amoxicillin/clavulanate potassium
) was launched by Beecham; the anti-ulcer treatment Zantac (ranitidine
) was launched by Glaxo; and the antiviral herpes treatment Zovirax (aciclovir
) was launched by Wellcome. In 1991 SmithKline Beecham launched Seroxat/Paxil (paroxetine hydrochloride
). In June 1993 Imperial Chemical Industries
demerged its pharmaceuticals and agrochemicals businesses, forming Zeneca Group plc
. In 1995 Glaxo opened a major research and development facility in Stevenage
, constructed at a cost of £700 million. In March 1995 the £9 billion acquisition of Wellcome by Glaxo was completed, at that point the largest merger in UK corporate history. BASF
completed the acquisition of the pharmaceutical division of The Boots Company
in April 1995. In 1997 SmithKline Beecham opened a major new research centre at New Frontiers Science Park in Harlow
, Essex
. In 1999 Zeneca Group plc and Sweden-based Astra AB
merged to form AstraZeneca plc. Glaxo Wellcome and SmithKline Beecham announced their intention to merge in January 2000, with the merger completing in December of that year, forming GlaxoSmithKline plc.
, then the largest UK-based biotechnology company, for £702 million. In April 2007 AstraZeneca agreed to acquire the U.S.-based biotechnology company MedImmune
for $15.6 billion. In April 2009 GlaxoSmithKline agreed to acquire Stiefel Laboratories
, then the world's largest independent dermatology company, for US$3.6 billion. In June 2009 Eisai opened a major new research and development and manufacturing facility in Hatfield
, constructed at a cost of over £100 million. In November 2009 GlaxoSmithKline and Pfizer combined their respective AIDS
divisions into one London-based company, ViiV Healthcare
. On 1 February 2011 Pfizer announced that it would be closing its entire research and development facility at Sandwich
, Kent
within 18-24 months with the loss of 2,400 jobs, as part of a company-wide plan to reduce its spending on research and development.
In 2007 the UK had the third-highest share of global pharmaceutical R&D expenditure of any nation, with 9% of the total, behind the United States
(49%) and Japan
(15%). The UK has the largest pharmaceutical R&D expenditure of any European nation, accounting for 23% of the total; followed by France
(20%), Germany
(19%), and Switzerland
(11%).
Notes:
a Italicised company name: ultimate parent is not UK-based
b Where parent company is UK-based: worldwide R&D spending; other companies: R&D spending in UK only
(MHRA) is the UK government agency which is responsible for ensuring that medicines and medical devices work and are acceptably safe.
Research and development
The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...
. In 2007 exports of pharmaceutical products from the UK totalled £14.6 billion, creating a trade surplus in pharmaceutical products of £4.3 billion.
The UK is home to GlaxoSmithKline
GlaxoSmithKline
GlaxoSmithKline plc is a global pharmaceutical, biologics, vaccines and consumer healthcare company headquartered in London, United Kingdom...
and AstraZeneca
AstraZeneca
AstraZeneca plc is a global pharmaceutical and biologics company headquartered in London, United Kingdom. It is the world's seventh-largest pharmaceutical company measured by revenues and has operations in over 100 countries...
, respectively the world's fifth- and sixth-largest pharmaceutical companies measured by 2009 market share. Foreign companies with a major presence in the UK pharmaceutical industry include Pfizer
Pfizer
Pfizer, Inc. is an American multinational pharmaceutical corporation. The company is based in New York City, New York with its research headquarters in Groton, Connecticut, United States...
, whose only research hub outside of the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
is based in Sandwich
Sandwich
A sandwich is a food item, typically consisting of two or more slices of :bread with one or more fillings between them, or one slice of bread with a topping or toppings, commonly called an open sandwich. Sandwiches are a widely popular type of lunch food, typically taken to work or school, or...
, Kent
Kent
Kent is a county in southeast England, and is one of the home counties. It borders East Sussex, Surrey and Greater London and has a defined boundary with Essex in the middle of the Thames Estuary. The ceremonial county boundaries of Kent include the shire county of Kent and the unitary borough of...
, Novartis
Novartis
Novartis International AG is a multinational pharmaceutical company based in Basel, Switzerland, ranking number three in sales among the world-wide industry...
, Hoffmann–La Roche and Eisai. One in five of the world's biggest-selling prescription drugs were developed in the UK.
History
19th century
In 1842 Thomas BeechamThomas Beecham (chemist)
Thomas Beecham was the founder of Beechams, which became one of the United Kingdom's largest pharmaceutical businesses.-Career:...
established the Beecham's Pills
Beecham's Pills
Beecham's Pills were a laxative first marketed around 1842 in St Helens, Lancashire. They were invented by Thomas Beecham , grandfather of Thomas Beecham ....
laxative business. By 1851 UK-based patent medicine companies had combined domestic revenues of around £250,000. Beecham opened Britain's first modern drugs factory in St Helens
St Helens, Merseyside
St Helens is a large town in Merseyside, England. It is the largest settlement and administrative centre of the Metropolitan Borough of St Helens with a population of just over 100,000, part of an urban area with a total population of 176,843 at the time of the 2001 Census...
in 1859. Henry Wellcome
Henry Wellcome
Sir Henry Solomon Wellcome FRS was an American-British pharmaceutical entrepreneur. He founded the pharmaceutical company Burroughs Wellcome & Company with his colleague Silas Burroughs, which is one of the four large companies that merged to form GlaxoSmithKline...
and Silas Burroughs formed a partnership in September 1880, and established an office in Snow Hill in Central London. The London Wholesale Drug and Chemical Protection Society was formed in 1867, which became the Drug Club in 1891, the forerunner of the present-day Association of the British Pharmaceutical Industry
Association of the British Pharmaceutical Industry
The Association of the British Pharmaceutical Industry is the trade association for 150 companies in the UK producing prescription medicines for humans...
. In 1883 Burroughs Wellcome & Co. opened their first factory, at Bell Lane Wharf in Wandsworth
Wandsworth
Wandsworth is a district of south London, England, in the London Borough of Wandsworth. It is situated southwest of Charing Cross. The area is identified in the London Plan as one of 35 major centres in Greater London.-Toponymy:...
, utilising compressed medicine tablet-making machinery acquired from Wyeth
Wyeth
Wyeth, formerly one of the companies owned by American Home Products Corporation , was a pharmaceutical company. The company was based in Madison, New Jersey, USA...
of the United States. Burroughs Wellcome & Co. established its first overseas branch in Sydney in 1898.
20th century
The Glaxo department of Joseph Nathan and Co was established in London in 1908. Glaxo Laboratories Ltd absorbed Joseph Nathan and Co in 1947 and was listed on the London Stock Exchange in the same year. In order to satisfy regulations then in place in the UK on the importation of medicines, PfizerPfizer
Pfizer, Inc. is an American multinational pharmaceutical corporation. The company is based in New York City, New York with its research headquarters in Groton, Connecticut, United States...
established a compounding operation in Folkstone, Kent in Autumn 1952. Pfizer acquired an 80 acre site on the outskirts of Sandwich
Sandwich, Kent
Sandwich is a historic town and civil parish on the River Stour in the Non-metropolitan district of Dover, within the ceremonial county of Kent, south-east England. It has a population of 6,800....
in 1954 to enable the expansion of its Kent-based activities. Glaxo acquired Allen and Hanburys Ltd.
Allen & Hanburys
Allen and Hanburys Ltd was a British pharmaceutical manufacturer, absorbed by Glaxo Laboratories in 1958.-History:The business was founded in 1715 in Old Plough Court, Lombard Street, London, by Silvanus Bevan, a Welshman, apothecary and a Quaker...
in 1958. In 1981 the bacterial infection treatment Augmentin (amoxicillin/clavulanate potassium
Amoxicillin
Amoxicillin , formerly amoxycillin , and abbreviated amox, is a moderate-spectrum, bacteriolytic, β-lactam antibiotic used to treat bacterial infections caused by susceptible microorganisms. It is usually the drug of choice within the class because it is better absorbed, following oral...
) was launched by Beecham; the anti-ulcer treatment Zantac (ranitidine
Ranitidine
Ranitidine is a histamine H2-receptor antagonist that inhibits stomach acid production. It is commonly used in treatment of peptic ulcer disease and gastroesophageal reflux disease . Ranitidine is also used alongside fexofenadine and other antihistamines for the treatment of skin conditions...
) was launched by Glaxo; and the antiviral herpes treatment Zovirax (aciclovir
Aciclovir
Aciclovir or acyclovir , chemical name acycloguanosine, abbreviated as ACV,is a guanosine analogue antiviral drug, marketed under trade names such as Cyclovir, Herpex, Acivir, Acivirax, Zovirax, and Zovir...
) was launched by Wellcome. In 1991 SmithKline Beecham launched Seroxat/Paxil (paroxetine hydrochloride
Paroxetine
Paroxetine is an SSRI antidepressant. Marketing of the drug began in 1992 by the pharmaceutical company SmithKline Beecham, now GlaxoSmithKline...
). In June 1993 Imperial Chemical Industries
Imperial Chemical Industries
Imperial Chemical Industries was a British chemical company, taken over by AkzoNobel, a Dutch conglomerate, one of the largest chemical producers in the world. In its heyday, ICI was the largest manufacturing company in the British Empire, and commonly regarded as a "bellwether of the British...
demerged its pharmaceuticals and agrochemicals businesses, forming Zeneca Group plc
Zeneca
Zeneca Group PLC was a multinational pharmaceutical company headquartered in London, United Kingdom. Zeneca was formed in June 1993 by the demerger of the pharmaceuticals and agrochemicals businesses of Imperial Chemical Industries into a separate company listed on the London Stock Exchange.In 1999...
. In 1995 Glaxo opened a major research and development facility in Stevenage
Stevenage
Stevenage is a town and borough in Hertfordshire, England. It is situated to the east of junctions 7 and 8 of the A1, and is between Letchworth Garden City to the north, and Welwyn Garden City to the south....
, constructed at a cost of £700 million. In March 1995 the £9 billion acquisition of Wellcome by Glaxo was completed, at that point the largest merger in UK corporate history. BASF
BASF
BASF SE is the largest chemical company in the world and is headquartered in Germany. BASF originally stood for Badische Anilin- und Soda-Fabrik . Today, the four letters are a registered trademark and the company is listed on the Frankfurt Stock Exchange, London Stock Exchange, and Zurich Stock...
completed the acquisition of the pharmaceutical division of The Boots Company
Boots UK
Boots UK Limited , is a leading pharmacy chain in the United Kingdom, with outlets in most high streets throughout the country...
in April 1995. In 1997 SmithKline Beecham opened a major new research centre at New Frontiers Science Park in Harlow
Harlow
Harlow is a new town and local government district in Essex, England. It is located in the west of the county and on the border with Hertfordshire, on the Stort Valley, The town is near the M11 motorway and forms part of the London commuter belt.The district has a current population of 78,889...
, Essex
Essex
Essex is a ceremonial and non-metropolitan county in the East region of England, and one of the home counties. It is located to the northeast of Greater London. It borders with Cambridgeshire and Suffolk to the north, Hertfordshire to the west, Kent to the South and London to the south west...
. In 1999 Zeneca Group plc and Sweden-based Astra AB
Astra AB
Astra AB was a former international pharmaceutical company headquartered in Södertälje, Sweden. Astra was formed in 1913 and merged with the British Zeneca Group in 1999 to form AstraZeneca. Product development was focused on therapeutics for gastrointestinal, cardiovascular and respiratory...
merged to form AstraZeneca plc. Glaxo Wellcome and SmithKline Beecham announced their intention to merge in January 2000, with the merger completing in December of that year, forming GlaxoSmithKline plc.
21st century
In February 2001 the Novartis Respiratory Research Centre, the largest single-site respiratory research centre in the world, opened in Horsham. In May 2006 AstraZeneca agreed to buy Cambridge Antibody TechnologyCambridge Antibody Technology
Cambridge Antibody Technology was a biotechnology company headquartered in Cambridge, United Kingdom...
, then the largest UK-based biotechnology company, for £702 million. In April 2007 AstraZeneca agreed to acquire the U.S.-based biotechnology company MedImmune
MedImmune
MedImmune, LLC, headquartered in Gaithersburg, Maryland, became a wholly owned subsidiary of AstraZeneca in 2007. Since being acquired, MedImmune has remained a Maryland-based biotechnology development enterprise...
for $15.6 billion. In April 2009 GlaxoSmithKline agreed to acquire Stiefel Laboratories
Stiefel Laboratories
Stiefel, a GSK company, is an American dermatological pharmaceutical company which makes products such as Duac and Oilatum, based in Research Triangle Park, North Carolina. Stiefel was acquired by GlaxoSmithKline at a rumored price of $2.9 billion...
, then the world's largest independent dermatology company, for US$3.6 billion. In June 2009 Eisai opened a major new research and development and manufacturing facility in Hatfield
Hatfield, Hertfordshire
Hatfield is a town and civil parish in Hertfordshire, England in the borough of Welwyn Hatfield. It has a population of 29,616, and is of Saxon origin. Hatfield House, the home of the Marquess of Salisbury, is the nucleus of the old town...
, constructed at a cost of over £100 million. In November 2009 GlaxoSmithKline and Pfizer combined their respective AIDS
AIDS
Acquired immune deficiency syndrome or acquired immunodeficiency syndrome is a disease of the human immune system caused by the human immunodeficiency virus...
divisions into one London-based company, ViiV Healthcare
ViiV Healthcare
ViiV Healthcare is a pharmaceutical company specializing in the development of therapies for HIV that was created as a joint venture by Pfizer and GlaxoSmithKline in November 2009 with both companies transferring their HIV assets to the new company. 85% of the company is owned by GlaxoSmithKline...
. On 1 February 2011 Pfizer announced that it would be closing its entire research and development facility at Sandwich
Sandwich, Kent
Sandwich is a historic town and civil parish on the River Stour in the Non-metropolitan district of Dover, within the ceremonial county of Kent, south-east England. It has a population of 6,800....
, Kent
Kent
Kent is a county in southeast England, and is one of the home counties. It borders East Sussex, Surrey and Greater London and has a defined boundary with Essex in the middle of the Thames Estuary. The ceremonial county boundaries of Kent include the shire county of Kent and the unitary borough of...
within 18-24 months with the loss of 2,400 jobs, as part of a company-wide plan to reduce its spending on research and development.
Research and development
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
(49%) and Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
(15%). The UK has the largest pharmaceutical R&D expenditure of any European nation, accounting for 23% of the total; followed by France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
(20%), Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
(19%), and Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
(11%).
| Companya | R&D spendingb (£m) | |
| 1 | GlaxoSmithKline GlaxoSmithKline GlaxoSmithKline plc is a global pharmaceutical, biologics, vaccines and consumer healthcare company headquartered in London, United Kingdom... |
3,629.00 |
| 2 | AstraZeneca AstraZeneca AstraZeneca plc is a global pharmaceutical and biologics company headquartered in London, United Kingdom. It is the world's seventh-largest pharmaceutical company measured by revenues and has operations in over 100 countries... |
2,745.68 |
| 3 | Shire | 346.71 |
| 4 | Pfizer UK Pfizer UK Pfizer UK is the principal subsidiary of the multinational pharmaceutical company Pfizer in the United Kingdom. Pfizer UK employs over 4,000 people and spends around £550 million per year on research and development in the UK... |
325.66 |
| 5 | Roche Products | 208.44 |
| 6 | Eisai Europe | 151.13 |
| 7 | Eli Lilly and Company Eli Lilly and Company Eli Lilly and Company is a global pharmaceutical company. Eli Lilly's global headquarters is located in Indianapolis, Indiana, in the United States... |
130.21 |
| 8 | Amgen Amgen Amgen Inc. is an international biotechnology company headquartered in Thousand Oaks, California. Located in the Conejo Valley, Amgen is the world's largest independent biotech firm. The company employs approximately 17,000 staff members. Its products include Epogen, Aranesp, Enbrel, Kineret,... |
127.06 |
| 9 | Merial Merial Merial is a multinational animal health company. It was formed as a joint venture between Merck & Co. and Sanofi-Aventis in 1997. Merial is now the animal health subsidiary of Sanofi-Aventis. Merial is a company leader in innovation, and provides an ample range with products to improve the... |
102.42 |
| 10 | Novartis Pharmaceuticals Novartis Novartis International AG is a multinational pharmaceutical company based in Basel, Switzerland, ranking number three in sales among the world-wide industry... |
90.27 |
| 11 | John Wyeth & Brother Wyeth Wyeth, formerly one of the companies owned by American Home Products Corporation , was a pharmaceutical company. The company was based in Madison, New Jersey, USA... |
60.33 |
| 12 | Bristol-Myers Squibb Bristol-Myers Squibb Bristol-Myers Squibb , often referred to as BMS, is a pharmaceutical company, headquartered in New York City. The company was formed in 1989, following the merger of its predecessors Bristol-Myers and the Squibb Corporation... |
55.49 |
| 13 | Janssen-Cilag Janssen-Cilag Janssen-Cilag is a subsidiary of the Johnson & Johnson pharmaceutical company. The company was founded in the early 1950s by a merger between Janssen Pharmaceutica and Cilag.... |
54.37 |
| 14 | PowderMed | 45.57 |
| 15 | Aventis Pharma Sanofi-Aventis Sanofi S.A. is a multinational pharmaceutical company headquartered in Paris, France, the world's fourth-largest by prescription sales. Sanofi engages in the research and development, manufacturing and marketing of pharmaceutical products for sale principally in the prescription market, but the... |
44.92 |
| 16 | Allergan Allergan Allergan, Inc., is a global specialty pharmaceutical company. Their product ranges include ophthalmic pharmaceuticals, dermatology products, and neurological products.-Profile:... |
37.40 |
| 17 | Organon Laboratories Organon International Organon is a human pharmaceutical company headquartered in Oss, Netherlands. In November 2007 the company became a part of Schering-Plough Corporation, acquired Organon, active pharmaceutical ingredient producer Diosynth , and its veterinary pharmaceutical sister company Intervet from Akzo Nobel. ... |
36.78 |
| 18 | Vectura Vectura Group Vectura Group plc is a leading British-based pharmaceuticals business. It is based in Chippenham and is a former constituent of the FTSE 250 Index.-History:... |
36.40 |
| 19 | Antisoma | 35.77 |
| 20 | Boehringer Ingelheim | 29.29 |
| 21 | Genus Genus plc Genus plc is a British-based business selling products manufactured using biotechnology to cattle and pig farmers. It is headquartered in Basingstoke and is a constituent of the FTSE 250 Index.-History:... |
28.60 |
| 22 | BTG BTG BTG plc , a public limited company is an international specialty pharmaceuticals company that is developing and commercialising products targeting critical care, cancer, neurological and other disorders... |
27.00 |
| 23 | Servier R&D | 25.10 |
| 24 | Ipsen Developments Ipsen Ipsen is a French pharmaceutical company headquartered in Paris, France. It primarily develops and markets medications used in oncology, endocrinology and the treatment of neuromuscular disorders. In 2005, Ipsen spent € 169 million—20.9% of consolidated sales—on research and development, according... |
23.97 |
| 25 | Renovo | 18.07 |
Notes:
a Italicised company name: ultimate parent is not UK-based
b Where parent company is UK-based: worldwide R&D spending; other companies: R&D spending in UK only
Regulation
The Medicines and Healthcare products Regulatory AgencyMedicines and Healthcare products Regulatory Agency
The Medicines and Healthcare products Regulatory Agency is the UK government agency which is responsible for ensuring that medicines and medical devices work and are acceptably safe....
(MHRA) is the UK government agency which is responsible for ensuring that medicines and medical devices work and are acceptably safe.
See also
- Association of the British Pharmaceutical IndustryAssociation of the British Pharmaceutical IndustryThe Association of the British Pharmaceutical Industry is the trade association for 150 companies in the UK producing prescription medicines for humans...
- List of pharmaceutical manufacturers in the United Kingdom
- List of pharmacy organizations in the United Kingdom
Further reading
- A. Duckworth, 'Rise of the pharmaceutical industry', Chemist and Druggist, 172, 1959, pp 127-39
- C. A. Hill, 'The changing foundations of pharmaceutical manufacturing', Pharmaceutical Journal, 134, 1935, pp 533-5
- J. Liebenau, 'The rise of the British pharmaceutical industry', British Medical Journal, 301, 1990, pp 724-33
- C. J. Thomas, 'The pharmaceutical industry', in D. Burn (ed) The Structure of British Industry - Volume II (Cambridge University Press, 1958), pp 331-75