Eli Lilly’s remarkable rise as a leader in the pharmaceutical industry, largely fuelled by the success of its GLP-1 weight-loss drugs like Mounjaro and Zepbound, underscores the company’s growing global influence. However, despite its aggressive expansion in countries like the US, Ireland, and several EU nations, the UK has missed out on Eli Lilly’s investments. According to the company’s CEO, Dave Ricks, the UK’s outdated and cumbersome planning system has been a significant barrier to building factories there.
Ricks recently revealed that Eli Lilly had considered the UK as a site for a manufacturing plant in the last decade but ultimately chose another country due to the complexities of the UK’s planning processes. He highlighted the importance of reducing the time needed to set up a pharmaceutical plant from five years to just two, a competitive advantage offered by countries like the US and Ireland, which have simplified regulations. These countries, Ricks explained, pre-reserve land and streamline the approval process, enabling faster factory construction—an essential factor as the demand for Eli Lilly’s weight-loss drugs outstrips supply.
The UK’s planning system, by contrast, has been an “impediment” to rapid factory setup, making it less attractive for pharmaceutical investment. Ricks also pointed out that while the UK is a great place to visit and operate, it is a relatively smaller market. To make the UK a viable destination for future investment, the government would need to enhance other factors, such as workforce availability, asset delivery, and economic incentives. Ricks stressed the need for the UK to assess whether it is "as competitive as it can be" in attracting foreign investment.
Although Ricks did not rule out the UK as a future location, he emphasised that for the country to be truly competitive, the next government must consider how it can streamline its planning laws and cut through red tape. He urged policymakers to focus on making the UK "world-class" in terms of business attractiveness, particularly given the global competition to secure pharmaceutical investments.
This issue has gained political traction, with both the Conservative and Labour parties pledging planning reforms to boost economic growth. Labour has criticised the current government for its handling of the life sciences sector, promising a new industrial strategy that would put the industry at the heart of its growth plan. However, Ricks’ concerns reflect broader anxieties that unless the UK makes significant changes to its planning system, it risks losing further investment to more agile and accommodating markets.
Eli Lilly is also exploring ways to expand the use of its blockbuster weight-loss drugs to individuals at risk of weight gain but not yet classified as overweight. Ricks suggested lowering the BMI entry point to 25 for trials, especially for their experimental pill orforglipron. This aligns with the company's broader strategy to remain a leader in obesity treatments while addressing future health maintenance opportunities, further solidifying its role in shaping global weight management and disease prevention efforts.