Lilly’s £279m bet aims to boost UK life sciences sector

The facility will offer advanced laboratory space, mentorship and financial support to help startups develop transformative medicines. Credit: Jonathan Weiss / Shutterstock

Leading obesity drugmaker Lilly has announced a £279m ($365.5m) investment in the UK in a major collaboration between the company and the UK government. The announcement was made during October 2024’s International Investment Summit in London, emphasising the UK’s ambition to remain at the forefront of life sciences innovation.

A cornerstone of the investment is the launch of Europe’s first Lilly Gateway Labs, an innovation accelerator designed to support early-stage life science ventures. The facility will offer advanced laboratory space, mentorship and financial support to help startups develop transformative medicines. The initiative aims to further enhance the growth of the life sciences sector, which already contributes to the UK economy, supporting 300,000 jobs.

Obesity costs the National Health Service (NHS) more than £11bn annually and as the country’s second leading preventable cause of cancer, is a central focus of the collaboration. The partnership seeks to explore innovative treatments and technologies to address this health issue. David A Ricks, chair and CEO of Eli Lilly and Company, emphasised the importance of this initiative, highlighting its role in “tackling and preventing disease, and accelerating innovation to advance care delivery models.” He noted that the collaboration between the government and Lilly reinforces Lilly’s commitment to improving the lives of those affected by obesity and its serious consequences. By integrating life sciences expertise with the healthcare system, the initiative seeks to deliver improved long-term health outcomes for patients.

The UK government has positioned life sciences as a central pillar of its economic growth strategy, with this initiative further reinforcing that commitment. Speaking at the summit, Science and Technology Secretary Peter Kyle stated that the collaboration will drive the economy and contribute to “creating the jobs, opportunity and growth we need to invest further in health and to push up living standards.”

The announcement aligns with the UK government’s strategy to strengthen the NHS, outlined in the Autumn Budget 2024. An additional £25.7bn – the largest funding boost since 2010, excluding the Covid-19 periods – will be allocated up to 2026. Key measures include reducing waiting times for medical treatment with 40,000 extra weekly elective appointments and ensuring treatment within 18 weeks of referral. The plan also dedicates £1.5bn to new surgical hubs for 30,000 additional procedures annually, and supports more than 1.25 million advanced diagnostic tests. These investments address immediate challenges while building long-term resilience in the healthcare system.

Lilly’s investment and the UK government’s strategic support for life sciences and healthcare represent a pivotal moment for the industry. By fostering innovation, addressing pressing health challenges such as obesity and driving economic growth, the collaboration sets a powerful example of public-private partnerships aimed at improving both national health outcomes and economic advancements.