TLDR
- Eli Lilly pauses UK Gateway Labs investment due to concerns over NHS drug uptake.
- ABPI warns UK is an “international outlier” in life sciences competitiveness.
- More than 60 medicines were delayed or not launched in the UK since 2019.
- LLY stock closed at $756.28 on September 11, 2025, down 17.25% in one year.
- UK government defends competitiveness, citing £600m in health data funding.
Eli Lilly and Company (NYSE: LLY) stock closed at $756.28 on September 11, 2025, up 0.22% for the day, before dipping to $753.20 in pre-market trading. The company confirmed it has paused development of its UK biotech incubator, Gateway Labs, citing uncertainty around NHS spending on new drugs.
The move follows a September 11 report by the Association of the British Pharmaceutical Industry (ABPI), which highlighted the UK’s research strengths but warned that limited NHS uptake of innovative medicines makes the market less attractive for global pharmaceutical investment.
Christopher Stokes, Eli Lilly’s UK president, said the company awaits “more clarity on the UK environment” before proceeding.
ABPI raises red flags
The ABPI report criticized the UK as an “international outlier” in competitiveness. It found that more than 60 drugs or indications were delayed or not launched in the UK between 2019 and 2023, with nearly 70% of those decisions tied to pricing restrictions.
The trade group warned that if such practices spread globally, they could undermine pharmaceutical investment and innovation. It also ranked the UK only “moderate” across clinical trial capacity, visa access, and infrastructure despite strong academic and research output.
UK strengths and challenges
Despite its challenges, the UK remains a global leader in certain areas of life sciences. It is second worldwide for top-ranked life sciences universities, third in hospitals delivering more than 100 clinical trials annually, and has one of the highest outputs of highly cited medical publications.
However, these strengths are being offset by regulatory and pricing barriers. ABPI CEO Richard Torbett said: “Without a more competitive environment for investment, we risk losing out to other countries making bold moves.”
Government response
The UK government rejected the criticism, arguing that it remains a leading investment hub. A spokesperson cited a Deloitte survey ranking the UK alongside India as the most attractive place for investment.
Officials pointed to commitments of £600m for the Health Data Research Service and £520m for the Life Sciences Innovative Manufacturing Fund, designed to attract private capital and accelerate drug discovery.
LLY stock performance
Eli Lilly’s recent pause comes as its stock performance lags in 2025. Year-to-date, LLY is down 1.45%, and its one-year return is -17.25%, underperforming the S&P 500’s 12% YTD and 18.6% one-year gains.
Despite short-term weakness, Eli Lilly maintains long-term strength with a 144% three-year return and a 440% five-year return, far ahead of the S&P 500 over the same periods.
