US Export Plan - Sector Report - Pharmaceutical Services

Overview

Scotland’s pharmaceutical services sector is a key pillar of its life sciences industry and a significant contributor to the national economy. According to analysis by the University of Strathclyde's Fraser of Allander Institute, the wider pharmaceutical sector accounted for £1.7 billion in GVA and nearly 15,000 jobs in 2023^[1]. It is also the second most important contributor to business R&D in the Scottish economy. Exports are a key part of the sector, and The Export Plan for Scotland’s Life Sciences Sector identified pharma services and contract research as contributing 21% of Scotland’s life sciences exports, with pharmaceuticals contributing an additional 15%^[2].

Pharmaceutical services encompass professional health services involving clinical research, trials and drug delivery, as well as optimising drug therapy to improve patient outcomes and health, for example through biomedical services and therapeutics. Scotland’s experience in the pharmaceutical services sector is broad rather than having deep specialisms, with many capabilities such as manufacturing services and formulation development forming a part of the nation’s proposition. Scotland’s role in the sector includes being fertile ground for innovation and early-stage development. Engagement with the US sector has accordingly not only been about exports, but also about investment, including from the American VC community and larger pharmaceutical companies. It is also important to note that in terms of international exports, Scottish businesses typically sell their pharmaceutical services to other larger companies, with more of a b2b focus rather than directly selling commercial level stage products and services to the customer. A good example of this, is RoslinCT which is a prominent Scottish biotechnology company that has successfully built a transatlantic business model by delivering high‑value industrial and clinical biotech services to major US customers. Operating from state‑of‑the‑art facilities in Edinburgh and Livingston, the company is a leading global Contract Development and Manufacturing Organisation (CDMO) specialising in advanced cell and gene therapies.^[3]

Looking ahead, investment in R&D and manufacturing capacity is likely to be a key driver of securing future growth in a globally competitive market. The Association of the British Pharmaceutical Industry (ABPI) Scotland has emphasised that researching, making and distributing medicines contributes £2.7 billion annually to Scotland’s industrial output and has significant potential to expand if supported by targeted policy and infrastructure.^[4] Confidence in export led growth will further support investment decisions, including at a firm level.