Pharmaceutical industry: characteristics of the workforce

80% of UK employment is in England, with the South East (21% of employment and 19% of businesses) and the East of England (17% of employment and 18% of businesses) the most popular regions [Pharmaceuticals and Medical Biotechnology, Cogent 2010].

Around 70% of the workforce is educated to at least degree level, 40% of whom are postgraduates [Life Sciences & Pharmaceuticals: A future skills review, 2009]. 60% of employers in 2010 found managerial vacancies ‘hard to fill' [Skills Oracle -The pharmaceutical industry, 2010].

The pharmaceutical industry invests £4.3bn in research and development and around £655m on capital expenditure in the UK, representing around a quarter of all industry-supported R&D investment.

According to the 2010 R&D Scoreboard [R&D scoreboard, 2010], six of the 25 largest investors in R&D in the UK and eight of the 25 largest global investors are pharmaceuticals and biotechnology companies. Roche and Pfizer were the largest in the 2010 G1000 [The G1000 are the 1000 companies with the largest global R&D spend] at second and fifth place, respectively. Only one UK company, GlaxoSmithKline, is in the 25 largest global R&D investors.

The global pharmaceuticals and biotechnology sector increased R&D expenditure by 5.5% in 2009. The UK sector, however, recorded growth of just 0.9% in 2009.

There are significant differences between the two largest spenders in the UK. GlaxoSmithKline saw its R&D expenditure and sales increase by 10% and 16%, respectively, for a boost in operating profit of 6%. AstraZeneca, however, reduced its R&D expenditure by 12%, while growing sales by 4%, resulting in an increase in operating profit of 24%.

Smaller UK companies also did well. In particular, Shire grew its R&D spend by 16% and although sales decreased by 1%, operating profit grew by 90%. Another high performer was Eisai Europe, which increased its R&D by 42%, sales by 30%, and recorded a growth in operating profit of 125%.

Average annual growth rate was 4.7% over 1998-2008.