Eli Lilly CEO warns of declining UK life sciences reputation
- David Ricks, CEO of Eli Lilly, commented on the long-term effects of Trump's tariffs on US manufacturing and tax revenues.
- Ricks expressed concerns about the UK's declining status in pharmaceuticals due to slow regulation and innovation disincentives.
- The imposition of tariffs may adversely affect investment in new medicines, highlighting the industry's critical concern for future development.
In an exclusive interview with the BBC, David Ricks, the Chief Executive of Eli Lilly, expressed significant concerns about the impact of tariffs imposed by the Trump administration on the US pharmaceutical industry. He described these tariffs as a watershed moment in US economic history, emphasizing that the decision would be difficult to reverse. While Ricks believed it might incentivize some companies to shift manufacturing back to the US, he was skeptical about the claim that tariffs would generate substantial tax revenue for the country. He highlighted that the imposition of tariffs could negatively affect investment in research and development, a critical component for innovation in the pharmaceutical sector. Ricks also commented on the decline of the UK's status as a leader in pharmaceuticals and life sciences. His observations noted a correlation between slow regulatory processes, poor uptake of new medications, and the diminishing reputation of the UK as a life sciences powerhouse. Ricks warned that patients are missing out on advancements in medicine due to these declining trends within the UK market, which does not incentivize innovation adequately. The CEO pointed out that Eli Lilly, a global pharmaceutical giant with a market capitalization of $750 billion and over 50,000 employees worldwide, has been adjusting to these tariff-related challenges. As a result, the company has had to rethink its strategies in light of the changing economic environment, often meaning that they have to absorb tariff costs, which could lead to reductions in workforce or in investment in R&D. Ricks also expressed respect for the Trump administration's intentions behind the tariffs, even though he did not personally support them. He discussed the dual goals of wanting both production autonomy and intellectual property development within the US, highlighting the tension faced by companies trying to navigate the current economic policy landscape while still remaining competitive in a global market where demand continues to thrive despite domestic challenges.