• Press Office

    Posted in category News Release by Press Office on 28/07/2006

    Pharmaceuticals contribute over £800 million to the Scottish economy

The significant impact the pharmaceutical industry has on the Scottish economy was revealed for the first time today.


​The significant impact the pharmaceutical industry has on the Scottish economy was revealed for the first time today.

Pharma-related business contributes £830 million to the turnover of the economy, adds over £350 million to the value and injects around £230 million through wages and salaries, according to a report published today.

The report, Contribution of Pharma-Related Business Activity to the Scottish Economy, has been carried out by EP Associates on behalf of ABPI Scotland, in association with Scottish Enterprise, to provide an assessment of the economic impact of pharmaceuticals on the Scottish Economy for the first time.

The report estimates that this industry directly employs nearly 8000 people in Scotland, higher than the number of people in the computer industry and similar to the number employed by the spirits industry. Each of these 8000 employees adds around £45,000 a year to the value of the economy.

Key findings of the report when looking at the direct effects of pharmaceuticals business activity include:

  • Contributing around £830 million to the turnover (ie gross output) of the Scottish economy;
  • Spending nearly £470 million on raw materials, components, semi finished goods and other consumables,
  • Adding over £350 million to the gross value of the Scottish economy,
  • Injecting around £230 million into the Scottish economy through gross wages and salaries; and
  • Investing over £80 million in the plants and equipment.

The £82 million capital investment shown by pharma-related business is four times higher than that of textile or computer related businesses.

When direct, indirect and induced effects are taken into account pharma activity:

  • Contributes over £1.3 billion to the gross output of the Scottish economy,
  • Adds over half a billion pounds to the gross value of the Scottish economy; and
  • Creates and safeguards in excess of 12,500 jobs – many of which are high value to the economy.

Jim Eadie, Director of ABPI Scotland said,

“Today’s report illustrates that the pharmaceutical industry plays a vital role in not only, improving the health of the people of Scotland, but also in improving the health of our economy.

For the first time this report provides the evidence that the pharmaceutical industry is vital to the sustainable growth of the Scottish economy.

“However, the future success of this industry relies on fostering a climate of innovation and the adoption of new technologies including the uptake of new innovative medicines within the health service. “

Ken Snowden, Director of Life Sciences for Scottish Enterprise said,

“The partnership between Scottish Enterprise and the pharmaceutical industry is already delivering significant benefits to Scotland’s economy through support for research, clinical research and Scotland’s highly reputable talent pool.

“Today’s report captures the level of those benefits to our economy and provides us with a benchmark to measure success of this industry in the future. The pharmaceutical industry adds significantly to the broader base of the life sciences industry.”

The report is based on 114 companies that employed in excess of 7,800 for the year of analysis, 2003. The companies represent the spectrum of market activity for pharmaceuticals from medicine discovery to manufacture and delivery.

Notes to editors:

The Association of the British Pharmaceutical Industry (ABPI) is the trade association for about a hundred companies in the UK producing prescription medicines. Its member companies research, develop, manufacture and supply more than 90 per cent of the medicines prescribed through the National Health Service (NHS).

For further information, please contact: ABPI Press Office 020 7747 1410

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