INSIGHTS - APRIL 2024

UK Pharmaceuticals Industry

UK Pharmaceuticals Industry Information

The pharmaceuticals industry involves physical processes such as blending, compression, filtration, heating, encapsulation, shearing, tableting, granulation, coating, and drying to produce drugs for use as medications

Active Businesses

1,275

Annual Sales

£41bn +

Employees

105,572

Economic Contribution 

£14bn

Tags

Location of Pharmaceuticals Companies

Pharmaceuticals Companies by Size

51% Micro

28% Small

8% Large

8% Mid

6% Mega

Pharmaceuticals Companies by Age

30% Mature

26% Established

24% Young

20% Startup

0% New

Fastest Growing Pharmaceuticals Companies

43% Declining

19% Healthy

16% Rapid

11% Low

10% High

Pharmaceuticals Industry Competitive Environment - New Entrants vs Leavers

Pharmaceuticals Industry Valuation

EBITDA Multiple

Pharmaceuticals Industry Valuation

Turnover Multiple

Pharmaceuticals Industry Valuation

Net Asset Multiple

Note - from March 2020 multiples are calculated monthly, prior to this they were calculated on an annual basis.
UK Manufacture of basic pharmaceutical products and pharmaceutical preparations Industry Insights

There are 1,275 active Businesses in the UK with combined annual sales of £41 billion .

The Industry employs around 105,571 people and contributes £14 billion to the economy.

The most popular location for Pharmaceuticals companies is London with 359 and the fewest are located in Northern Ireland with 27.

The largest Pharmaceuticals company is Astrazeneca Plc with a turnover of £35.9bn. 51% of the industry is comprised of Micro companies with only 8% Large companies.

20% of the Pharmaceuticals Industry is made up of 20% Startup but the majority are Mature businesses (30%) the oldest company is Smith Kline & French Laboratories Limited founded in 1897.

Pharmaceuticals industry has a number of high growth companies (11%), the fastest growing company is Elanco Uk Ah Limited with a 3 year growth rate of 125%. Other fast growing companies include Gw Pharma Limited (50%), Teva Laboratories Uk Limited (47%) and Mercury Pharma Group Limited (41%).

The UK Pharmaceuticals Industry’s valuation has been improving over the past 3 years with a current EBITDA multiple of 13.29x, Turnover multiple of 2.86x and a Net Asset multiple of 2.42x.