Scotland's pharma industry sees continued growth

Scotland’s pharmaceutical industry has seen continued growth in employment, exports and productivity, according to a new report published by the University of Strathclyde’s Fraser of Allander Institute. 

The report outlines how the country’s £1.8 billion pharma sector has seen an increase in employment, exports, and research investments since the last major review in 2017. Pharmaceutical companies in Scotland are continuing to be major employers for the country, placing high-value jobs in towns and rural communities, including in some of the most deprived areas of Scotland.

Pharmaceutical companies in Scotland employ 5,600 people, with the majority of jobs in North Ayrshire, the Highlands and Dundee. The total figure is a 9% increase on the 5,130 full-time equivalent (FTE) employees reported in 2018. 

In terms of employees’ salaries, the average income for those working within the pharmaceutical sector in Scotland is £35,600. 

The strong investment seen by pharmaceutical companies also has a significant impact on the wider economy, with every 10 jobs in the sector creating 17 elsewhere in the country – with the industry indirectly supporting 15,250 jobs overall in Scotland.

The report also outlines that industry exports have risen from £550 million in 2017, to £575 million. Overall, the sector has a gross value added (GVA) worth £1.8 billion, rising almost 6% from 2017 when it was £1.7 billion.  

Since 2018, annual business spending on pharmaceutical R&D has risen almost $45 million, with £165 million worth of investment being spent each year on projects ranging from genetic patient screening for rheumatoid arthritis, research into managing hypoglycaemia to reduce pressure on the Scottish Ambulance Service, and better treatment of heart disease to reduce time people spend in hospital.

Alison Culpan, director of the Association of the British Pharmaceutical Industry (ABPI) Scotland, said: “In a year that has seen our companies stepping up and starting to lead us out of the pandemic with the vital vaccines we need, I am proud that the pharmaceutical industry continues to thrive in Scotland.

“Scotland’s industry is stronger today than it was three years ago with more people employed in good jobs, more being spent on research and development, and exports topping half a billion pounds.

“It is important that the Scottish Government is ambitious and works with us to nurture and promote a sector which is not only exporting Scottish excellence around the world but delivering for the health of people here in Scotland.”

Deputy director of the Fraser of Allander Institute, Mairi Spowage added: “Our economic analysis shows that the industry continues to grow in Scotland with direct employment, exports and GVA increasing.

“The contribution of the sector extends beyond the activities of pharmaceutical companies themselves, with their output supporting employment and income right across the country including areas of historically high unemployment and deprivation.”