Industry calls on government to boost investment in commercial clinical trial capacity to drive £3 billion extra economic growth, 26,000 new jobs

New data shows that industry clinical trials contributed £7.4 billion gross value added (GVA) to the UK economy in 2022, with the potential for further growth, according to a report by Frontier Economics commissioned by the Association of the British Pharmaceutical Industry (ABPI).

The report, ‘The value of industry clinical trials to the UK,’ [1] highlights the multibillion pound contribution industry clinical trials make to the UK economy, showing how industry investment drives economic growth, jobs, and wider health system benefits.

Industry clinical trials generated £7.4billion GVA for the UK economy, while creating 65,000 jobs [2]. The NHS also benefited from £1.2 billion in direct revenue from clinical trials [3], with 13,000 of the total jobs based in the NHS.

The report also estimated the productivity gains from people leading healthier, more productive lives as a result of research-active hospitals providing better care. Faster access to new treatments following clinical trials helped to avoid three million sick days, worth £0.9 billion to the UK economy. [4]

There were also wider non-financial benefits to the NHS from running industry clinical trials. NHS Trusts engaged in research tended to have lower mortality rates, a trend that persisted even after accounting for staffing and facility differences. In addition, NHS trial locations saw shorter hospital stays for patients and improved patient care experiences. Participation in research also raised job satisfaction among clinicians.

Between 2019 and 2023, industry contributed to almost 5,000 research papers, which supported 283 patent applications. On average, 11% of these papers were in the top 1% of the most referenced scientific papers. This figure is much higher than the EU benchmark (5.7%), demonstrating the quality of contribution that industry research brings to the UK R&D base.  

There is potential for significantly greater benefits. Industry clinical trials have been in decline in the UK in recent years. [5] If industry clinical trial activity returned to levels comparable with 2017, an increase of 40 per cent on 2022, the benefits to the UK could be even greater. An extra £3 billion would be contributed to the economy including an additional £486 million of revenue to the NHS. This would support 26,000 more jobs, including 5000 more in the NHS.

To deliver on this significant potential, the ABPI is asking the government to further expand patients’ access to industry clinical trials by:

• Bringing the outstanding clinical trials legislation since the UK left the EU, into law. This legislation will give companies certainty on how to operate in the UK [6]
• Accelerating delivery of the O’Shaughnessy review recommendations and investing at least an additional £60 million per year in workforce capacity and stimulating industry clinical research in primary care [7], alongside the £300 million that industry will contribute to boosting delivery of trials through the Voluntary scheme for medicines Pricing, Access and Growth (VPAG) Investment Programme [8]

The UK pharmaceutical industry is the largest private sector investor in UK R&D, at £9 billion in 2022. [9]

Richard Torbett, Chief Executive of the ABPI said: “This report clearly demonstrates the financial and societal benefits that industry clinical trials bring to the economy, the NHS and to R&D in the UK.

“Increasing growth and productivity and improving the health and wellbeing of the UK population are both crucial. Ensuring that the UK is in the best shape to attract more global industry clinical trials will make a major contribution to the government achieving these goals.

Dame Anna Dominiczak, Chief Scientist for the Scottish Government said: "Clinical trials are essential to the future health of Scotland. Through these trials, we find out what works in improving people’s health, what innovations could help the NHS deal with the pressures it faces, and there’s the added bonus of helping the economy at the same time. It’s great to see this report lay out the benefits of clinical trials in such clear terms.”

Professor Kieran Walshe, Director of Health and Care Research Wales said: “The report highlights the importance of working with our industry partners to advance cutting-edge pharmaceutical and technological developments through clinical trials. In Wales, we have a plan to expand our contribution to this vital agenda which will ultimately deliver real benefits to healthcare and patient care, as well as benefiting the economy”.

Dr Janice Bailie, Assistant Director, Health and Social Care Research & Development Division at Public Health Agency, commented: “This report provides an excellent and timely reminder of the benefits of working in partnership with industry to deliver commercial clinical trials. There is a growing evidence base that shows research-active healthcare organisations provide better outcomes for their patients.

“In Northern Ireland, this will give patients access to innovative treatments and improved care, based on well conducted research.”

Case study

Baby born deaf can hear after breakthrough gene therapy

Auditory neuropathy is a condition where the ear can detect sound normally, but has a problem sending signals to the brain.

This can be caused by a fault in the OTOF gene. The gene makes a protein called otoferlin that allows cells in the ear to communicate with the hearing nerve. Changes in this gene can reduce sound transmission from the inner hair cells to the hearing nerves.

Opal Sandy is the first patient treated in the global gene therapy trial. Opal was born completely deaf because of neuropathy. She was treated shortly before her first birthday.

During surgery, while Opal was given the gene therapy in right ear, a cochlear implant was fitted in her left ear. Within four weeks Opal responded to sound using her right ear. 

After 24 weeks Opal had close to normal hearing levels for sounds such as whispering. 

Six months after the treatment Opal can respond to her parents’ voices and can communicate words such as “Dada” and “bye-bye.”

Case study courtesy of the National Institute for Health and Care Research (NIHR). More about this story on the NIHR website here.

Notes to Editors
[1] Frontier Economics, ‘The value of industry clinical trials to the UK', commissioned by The Association of the British Pharmaceutical Industry, September 2024

[2] Of the 65,000 jobs, 21,000 were people employed directly by the pharmaceutical industry to deliver trials, 13,000 jobs were NHS roles involved with delivering trials, and 31,300 jobs came from the associated supply chains and spending by research staff.

[3] The NHS received an average of nearly £29,000 per patient recruited onto a clinical trial in 2022, generating a total of £1.2 billion of revenue to the NHS, reducing the burden on tax-payers.

[4] Avoided absenteeism was estimated by looking at the relationship between new drug treatments and gains in labour productivity across multiple conditions.

[5] ABPI, Rescuing patient access to industry clinical trials in the UK, Oct 2022, available at https://www.abpi.org.uk/media/news/2022/october/nhs-patients-losing-access-to-innovative-treatments-as-uk-industry-clinical-trials-face-collapse/

[6] The government previously announced plans to overhaul the legislation that governs clinical trials, to introduce a series of measures to make it faster and easier to run clinical trials in the UK. The updated legislation has not yet been published at time of writing. More detail at https://questions-statements.parliament.uk/written-statements/detail/2023-03-21/hcws659 

[7] The O’Shaughnessy Review made recommendation to government on how to boost industry clinical trials in the UK. The review can be found here https://www.gov.uk/government/publications/commercial-clinical-trials-in-the-uk-the-lord-oshaughnessy-review

[8] The Voluntary scheme for branded medicines Pricing, Access and Growth (VPAG) is an agreement between industry, the NHS and government on medicines pricing, which caps the amount that the NHS spends on branded medicines throughout the five-year period. The agreement can be found at https://www.gov.uk/government/publications/2024-voluntary-scheme-for-branded-medicines-pricing-access-and-growth

[9] ONS, Business enterprise research and development, UK 2022, available at https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/researchanddevelopmentexpenditure/bulletins/businessenterpriseresearchanddevelopment/previousReleases