pharmaceutical industry in the United Kingdom#Regulation

File:BeechamsBuilding.jpg factory in St Helens]]

In 1833, John Duncan and William Flockhart became partners in what grew into Duncan, Flockhart and Company and began manufacturing drugs in Edinburgh. In 1847, Flockhart supplied chloroform to Dr (later Sir) James Young Simpson for his anaesthesia experiment and it started to be used in obstetrics. It was exhibited in London in 1851, supplied to Florence Nightingale and given royal approval,{{Cite web|title=Duncan, Flockhart and Co - Graces Guide|url=https://www.gracesguide.co.uk/Duncan,_Flockhart_and_Co|access-date=2021-06-17|website=www.gracesguide.co.uk}} and by 1895, to 750,000 doses per week in use.{{Cite journal|last=Worling|first=P.M.|date=1998|title=Duncan and Flockhart: the Story of Two Men and a Pharmacy|url=https://pubmed.ncbi.nlm.nih.gov/11620310/|journal=Pharmaceutical Historian|volume=28|issue=2|pages=28–33|pmid=11620310|via=PMID}} The firm grew but eventually merged into the Glaxo organisation.

In 1842 Thomas Beecham established the Beecham's Pills laxative business, which would later become the Beecham Group.{{cite news|url=http://news.bbc.co.uk/1/hi/business/59523.stm|title=Drug giants in their own right|access-date=13 May 2011|work=BBC News|date=24 February 1998 }} By 1851 UK-based patent medicine companies had combined domestic revenues of around £250,000.{{citation |url=https://books.google.com/books?id=4JYjsQkBm3MC&q=%22Drug+Club%22+1891|title=The pharmaceutical industry: a guide to historical records|author1=Lesley Richmond |author2=Julie Stevenson |author3=Alison Turton | publisher=Ashgate Publishing| location=London, UK | year=2003| isbn=9780754633525 | access-date=25 May 2011}} 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.{{cite web|url=http://www.wellcome.ac.uk/About-us/History/WTX051562.htm|title=The birth and growth of Burroughs Wellcome & Co.|publisher=Wellcome Trust|access-date=13 May 2011}} 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.

The Glaxo department of Joseph Nathan and Co. was established in London in 1908.{{cite web|url=http://www.gsk.com/about/history.htm|title=Our history|publisher=GlaxoSmithKline plc|access-date=13 May 2011|url-status=dead|archive-url=https://web.archive.org/web/20110514143603/http://www.gsk.com/about/history.htm|archive-date=14 May 2011|df=dmy-all}} Glaxo Laboratories Ltd absorbed Joseph Nathan and Co in 1947 and was listed on the London Stock Exchange in the same year. To satisfy regulations then in place in the UK on the importation of medicines, Pfizer established a compounding operation in Folkestone, Kent in Autumn 1952.{{cite web|url=http://www.pfizer.co.uk/sites/PfizerCoUK/AboutUs/History/Pages/PfizerWorldwide.aspx|title=Pfizer's history 1949-55|access-date=25 November 2010|publisher=Pfizer UK|archive-url=https://web.archive.org/web/20101208215215/http://www.pfizer.co.uk/sites/PfizerCoUK/AboutUs/History/Pages/PfizerWorldwide.aspx|archive-date=8 December 2010|url-status=dead}} 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. Glaxo acquired EPI which was the successor of Duncan, Flockhart and Company and Macfarlan Smith in 1962. 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.{{cite web|url=http://www.astrazeneca.com/About-Us/History/Merger-partners-in-brief|title=Merger partners in brief|publisher=AstraZeneca plc|access-date=1 February 2011}} In 1995 Glaxo opened a major research and development facility in Stevenage, constructed at a cost of £700 million.{{cite news|url=https://www.independent.co.uk/news/business/ministers-fear-glaxo-merger-could-damage-drug-industry-1143870.html |archive-url=https://ghostarchive.org/archive/20220526/https://www.independent.co.uk/news/business/ministers-fear-glaxo-merger-could-damage-drug-industry-1143870.html |archive-date=26 May 2022 |url-access=subscription |url-status=live|title=Ministers fear Glaxo merger could damage drug industry|access-date=13 May 2011|work=The Independent|date=9 February 1998}} In March 1995 the £9 billion acquisition of Wellcome by Glaxo was completed, forming Glaxo Wellcome, in what was the largest merger in UK corporate history to date.{{cite news|url=http://news.bbc.co.uk/1/hi/business/606752.stm|title=Profile: Glaxo Wellcome|access-date=13 May 2011|work=BBC News|date=17 January 2000}} BASF completed the acquisition of the pharmaceutical division of The Boots Company in April 1995.{{cite news|url=https://www.nytimes.com/1997/05/19/us/lawsuit-says-companies-suppressed-drug-study.html|title=Lawsuit Says Companies Suppressed Drug Study|access-date=14 May 2011|work=The New York Times|date=19 May 1997}} 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.{{cite web|url=http://www.astrazeneca.com/About-Us/History|title=History|publisher=AstraZeneca plc|access-date=1 February 2011|archive-url=https://web.archive.org/web/20101217152754/http://www.astrazeneca.com/About-Us/History|archive-date=17 December 2010|url-status=dead}} 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.{{cite news|url=https://www.telegraph.co.uk/finance/4476425/Pharmaceutical-giants-Glaxo-and-SmithKline-finally-merge.html|title=Pharmaceutical giants Glaxo and SmithKline finally merge|access-date=1 February 2011|publisher=Reuters| date=27 December 2000}}

In February 2001 the Novartis Respiratory Research Centre, the largest single-site respiratory research centre in the world, opened in Horsham.{{cite news|url=http://www.chemeurope.com/en/news/1577/novartis-opens-the-world-s-largest-centre-for-respiratory-research-in-horsham-uk.html|title=Novartis opens the world's largest centre for respiratory research in Horsham, UK|access-date=13 May 2011|publisher=Chem Europe|date=28 February 2001}} In May 2006 AstraZeneca agreed to buy Cambridge Antibody Technology, then the largest UK-based biotechnology company, for £702 million.{{cite news|url=https://www.independent.co.uk/news/business/news/astrazeneca-pays-high-price-to-fill-drugs-chest-with-163700m-cat-deal-478434.html |archive-url=https://ghostarchive.org/archive/20220526/https://www.independent.co.uk/news/business/news/astrazeneca-pays-high-price-to-fill-drugs-chest-with-163700m-cat-deal-478434.html |archive-date=26 May 2022 |url-access=subscription |url-status=live|title=AstraZeneca pays high price to fill drugs chest with £700m CAT deal|access-date=13 May 2011|work=The Independent|date= 16 May 2006}}{{cite news|url=http://www.timesonline.co.uk/tol/life_and_style/health/article718413.ece|title=AstraZeneca agrees £702m Cambridge deal|access-date=13 May 2011|work=The Times|date= 15 May 2006}}{{dead link|date=September 2024|bot=medic}}{{cbignore|bot=medic}} In April 2007 AstraZeneca agreed to acquire the U.S.-based biotechnology company MedImmune for $15.6 billion.{{cite news|url=http://uk.reuters.com/article/2007/04/23/uk-medimmune-astrazeneca-idUKN2221194520070423|archive-url=https://web.archive.org/web/20121017232019/http://uk.reuters.com/article/2007/04/23/uk-medimmune-astrazeneca-idUKN2221194520070423|url-status=dead|archive-date=17 October 2012|title=AstraZeneca agrees to buy MedImmune|access-date=13 May 2011|publisher=Reuters|date=23 April 2007}} In April 2009 GlaxoSmithKline agreed to acquire Stiefel Laboratories, then the world's largest independent dermatology company, for US$3.6 billion.{{cite news|url=https://www.telegraph.co.uk/finance/newsbysector/epic/gsk/5186751/GlaxoSmithKline-buys-Stiefel-for-3.6bn.html|title=GlaxoSmithKline buys Stiefel for $3.6bn |access-date=25 May 2011|publisher=The Telegraph| date=20 April 2009}} In June 2009 Eisai opened a major new research and development and manufacturing facility in Hatfield, constructed at a cost of over £100 million.{{cite news|url=http://news.bbc.co.uk/1/hi/england/beds/bucks/herts/6422947.stm|title=Work starts on £100m drug firm HQ|access-date=13 May 2011|work=BBC News|date=6 March 2007}}{{cite news|url=http://www.stalbansreview.co.uk/news/4460807.Terry_Pratchett_in_Hatfield_today/|title=Author backing Alzheimer's research|access-date=13 May 2011|publisher=St Albans & Harpenden Review|date=26 June 2009}}{{cite web|url=http://www.eisai.co.uk/307/Eisai-opens-European-Knowledge-Centre|title=European Knowledge Centre|publisher=Eisai Co., Ltd.|access-date=13 May 2011}} In November 2009 GlaxoSmithKline and Pfizer combined their respective AIDS divisions into one London-based company, ViiV Healthcare.{{cite news|url=https://www.nytimes.com/2009/11/10/health/10glob.html?_r=2&scp=1&sq=ViiV&st=cse|title=AIDS Divisions of 2 Large Drug Makers Form Company to Focus on the Disease|access-date=1 February 2011|work=The New York Times| date=9 November 2009}} 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.{{cite news|url=http://www.kentonline.co.uk/kentonline/news/2011/february/1/drug_giant_to_pull_out_of_kent.aspx|title=Drug giant Pfizer to pull out of Kent|access-date=1 February 2011|publisher=Kent Online|date=1 February 2011|url-status=dead|archive-url=https://web.archive.org/web/20120610052548/http://www.kentonline.co.uk/kentonline/news/2011/february/1/drug_giant_to_pull_out_of_kent.aspx|archive-date=10 June 2012|df=dmy-all}}{{cite news|url=http://uk.reuters.com/article/uk-pfizer-sandwich-idUKTRE7103TG20110201|archive-url=https://web.archive.org/web/20200302211200/https://uk.reuters.com/article/uk-pfizer-sandwich-idUKTRE7103TG20110201|url-status=dead|archive-date=2 March 2020|title=Pfizer to shut major Sandwich site, home of Viagra|access-date=1 February 2011|publisher=Reuters| date=1 February 2011}}{{cite news|url=http://blogs.nature.com/news/thegreatbeyond/2011/02/thousands_of_jobs_to_go_as_pfi.html|title=Thousands of jobs to go as Pfizer looks to slash R&D spend|access-date=1 February 2011|publisher=Nature| date=1 February 2011}}

In March 2013 AstraZeneca announced plans for a major corporate restructuring, including the closure of its research and development activities at Alderley Park, investment of $500 million in the construction of a new research and development facility in Cambridge, and the move of its corporate headquarters from London to Cambridge in 2016.{{cite news|url=http://uk.reuters.com/article/uk-astrazeneca-rd-idUKBRE92H0I320130318|archive-url=https://web.archive.org/web/20160106131732/http://uk.reuters.com/article/uk-astrazeneca-rd-idUKBRE92H0I320130318|url-status=dead|archive-date=6 January 2016|title=AstraZeneca to axe 1,600 jobs in overhaul of drug R&D|access-date=23 March 2013|publisher=Reuters| date=18 March 2013}}{{cite news|url=http://www.timeshighereducation.co.uk/news/astrazeneca-cuts-uk-headcount-and-moves-to-cambridge/2002642.article|title=AstraZeneca cuts UK headcount and moves to Cambridge|access-date=23 March 2013|publisher=Times Higher Education| date=19 March 2013}}

The amount of funding received by UK life science companies reached a 10-year high in 2014.{{cite news|title=The UK is finally catching up with US in biotech investment - venture capital funding more than doubled last year|url=http://www.cityam.com/219829/uk-finally-catching-us-biotech-investment-life-sciences-funding-more-doubled-last-year|access-date=10 July 2015|work=CityAM|date=9 July 2015|quote=Big push for London}}{{cite web|title=A 10 Year Horizon – 2014 and 2015 Setting New Records in UK Biotech Financing via Capital Markets and Venture Capital|url=http://www.bioindustry.org/newsandresources/bia-news/evaluate-and-bias-uk-biotech-a-10-year-horizon/|publisher=Evaluate and BIA|access-date=10 July 2015|date=9 July 2015}}

File:GlaxoSmithKline headquaters -Brentford, London, England-2Oct2011.jpg, London]]

In 2007 the UK had the third-highest share of global pharmaceutical Research and development (R&D) expenditure of any nation, with 9% of the total, behind the United States (49%) and Japan (15%).{{cite web|url=http://www.bis.gov.uk/policies/business-sectors/biotechnology-pharmaceuticals-and-healthcare/pharmaceutical|title=The Pharmaceutical sector in the UK|publisher=Department for Business, Innovation & Skills|access-date=1 November 2010|url-status=dead|archive-url=http://webarchive.nationalarchives.gov.uk/20121212135622/http://www.bis.gov.uk/policies/business-sectors/biotechnology-pharmaceuticals-and-healthcare/pharmaceutical|archive-date=12 December 2012|df=dmy-all}}{{cite web|url=http://www.dh.gov.uk/prod_consum_dh/groups/dh_digitalassets/@dh/@en/@ps/documents/digitalasset/dh_113133.pdf|title=Ministerial Industry Strategy Group - Pharmaceutical Industry: Competitiveness and Performance Indicators|publisher=Department of Health|access-date=1 November 2010|url-status=dead|archive-url=http://webarchive.nationalarchives.gov.uk/20130107105354/http://www.dh.gov.uk/prod_consum_dh/groups/dh_digitalassets/%40dh/%40en/%40ps/documents/digitalasset/dh_113133.pdf|archive-date=7 January 2013|df=dmy-all}} 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%).

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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

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{{Expand section|year=2011|date=May 2011}}

The Medicines and Healthcare Products Regulatory Agency (MHRA) is the UK government agency which is responsible for ensuring that medicines and medical devices work and are acceptably safe.{{cite web|url=https://publications.parliament.uk/pa/cm200405/cmselect/cmhealth/42/42.pdf|title=The Influence of the Pharmaceutical Industry - Fourth Report of Session 2004–05|publisher=United Kingdom Parliament|access-date=26 May 2011}}

Global Justice Now and Stop AIDS Campaign published a report claiming patients could not always afford drugs where the public sector had partly funded research to develop those drugs. The report claims, "In many cases, the UK taxpayer effectively pays twice for medicines: first through investing in R&D, and then by paying high prices for the resulting medicine once ownership has been transferred to a private company." Richard Sullivan of King's College London, said some drug companies price their drugs correctly but others "vastly overprice" their drugs. There are calls for government action to discourage overpricing.[https://www.bbc.co.uk/news/health-41693246 Taxpayer-funded drugs 'too expensive for patients’] BBC

• Association of the British Pharmaceutical Industry
• Bad Pharma (2012) by Ben Goldacre
• List of pharmaceutical manufacturers in the United Kingdom
• List of pharmacy organizations in the United Kingdom

{{Reflist|2}}

• 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
• {{cite journal

| last = Cope

| first = Zachary

| author-link = Zachary Cope

| date = 5 February 1955

| title = Allen and Hanburys, 1715–1954

| journal = British Medical Journal

| volume = 1

| issue = 4909

| pages = 337

| issn = 0959-8138

| doi = 10.1136/bmj.1.4909.337-b

| pmc = 2060881

}}

• [http://www.abpi.org.uk/Pages/default.aspx Association of the British Pharmaceutical Industry]
• [http://www.bioindustry.org/home/ The UK BioIndustry Association]

{{Pharmaceutical industry in the United Kingdom}}

{{Pharmaceutical industry by country}}

{{Economy of the United Kingdom}}

{{Science and technology in the United Kingdom}}