UK Pharmaceutical Sector & Laboratory Sector Outlook 2026
The UK pharmaceutical sector and laboratory sector will enter 2026 in a steadier position than in recent years. While the pace of new project emergence has slowed compared with the COVID period, the market remains active, albeit different, with significant opportunities for suppliers of capital equipment, services and expertise. Suppliers can engage with the wide range of projects emerging and progressing in the UK pharmaceutical sector to find success into 2026.
At Protel, we are currently tracking 285 active pharmaceutical and laboratory projects in the UK, with a combined potential investment value of £8.5bn. Of these, 118 are pre-sanctioned, 122 sanctioned, and 45 on hold. We expect this balance to continue to shift in the run-up to Q1 2026, as more schemes move into delivery. New projects are still emerging, some of a significant size and scope. Across the sectors, companies are in the process of scoping for 2026 capex budgets, which should create momentum into the new year.
Key Trends in 2026
The outlook for 2026 is shaped by several important scientific, technological and procurement trends:
- Therapeutic focus – Cancer treatments remain a major area of growth, with particular attention on personalised cancer vaccines. Broader vaccine development has slowed since the COVID-19 boom, with RNA/DNA technologies encountering challenges with synthetics, but efforts continue in targeted and personalised medicine. Small molecules and peptides are also prominent, with weight loss drugs continuing to drive investment and demand.
- Emerging modalities – Investment in radio pharmaceuticals is increasing, though private-sector activity is currently limited. Large public-sector tenders dominate this space, favouring those organisations already established in research and public procurement frameworks. Oligonucleotides and other specialist molecules are becoming more visible in development pipelines.
- Procurement models – In laboratory capex, NHS procurement frameworks remain highly complex. To win work, contractors need to be on approved frameworks, meaning that equipment and service suppliers must secure strong relationships with main contractors and engineering houses rather than directly with end users. Pharmaceutical projects are often tendered as packages of works, with feasibility, design, civils, cleanrooms, validation and commissioning split across multiple companies. While this fragmentation creates many challenges, it also opens opportunities for agile suppliers with the right partnerships and key contact awareness.
- Science parks and pilot scale facilities – While still booming, fit-outs are often delayed until tenants are confirmed, with lab design sequencing (build first, then secure tenants, then fit-out) presenting logistical challenges for suppliers of capex equipment. Nonetheless, there is a steady flow of pilot-scale, R&D and innovation-led projects, which are keeping activity moving in the laboratory & life sciences space.
UK Pharmaceutical Sector Market Sentiment
Overall, the market can be described as “steady”, following stagnation through a post-COVID correction. There are fewer major new-build flagship schemes on the horizon from major UK players (with many high-profile announcements in recent weeks to this effect e.g. MSD, AZ & Eli Lily – important to note, this has been brewing for around 2 years), and most individual projects are valued at under £100m, but there is still plenty of activity to go around. Dedicated civils contractors are being appointed on many schemes, while EPC/cleanroom appointments are slower to materialise. Projects take time to reach sanction, but the pipeline is healthy enough to sustain suppliers with the right focus who can be agile to emerging areas of demand.
Compared to mid-2024, sentiment has improved, with more confidence visible in the past six months. The market is not booming, but it is resilient and moving forward steadily.
Opportunities for Suppliers in the UK Pharmaceutical Sector
For suppliers of capital equipment and services, opportunities are emerging in areas such as:
- Fermentation systems
- Stainless steel equipment
- Fill/finish solutions
- Pilot-scale production facilities
- R&D and innovation projects
Those positioned to work flexibly within packaged procurement models, and those able to build strong relationships with main contractors, will be best placed to capitalise.
Protel’s UK Pharmaceutical Coverage
Our research team is currently monitoring 285 active UK projects with a total potential investment value of £8.5bn. These cover a wide spectrum of early-stage concepts, sanctioned schemes, and projects currently on hold. Full details, including scope, schedule and key contacts, are available to Protel subscribers. We also cover pharmaceutical projects in Ireland, Belgium, the Netherlands and Germany.
Recent Contract Awards and Project Updates
Several key contract awards and project movements highlight the current activity across the UK pharmaceutical & life science sectors.
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Summary
The UK pharmaceutical and laboratory sector in 2025 presents a picture of stability but stagnation with evolution and gradual progress emerging. Large-scale new builds are rarer, but smaller pilot-scale, R&D, biologics and innovation-led schemes continue to flow. Procurement complexity and cost pressures mean suppliers must adapt to new routes to market, but opportunities remain significant for those with the right networks.
With a resilient pipeline and improving sentiment, the outlook heading into 2026 is one of steady growth rather than major expansion. Suppliers who align with emerging therapeutic trends, maintain strong partnerships with contractors, and stay agile in approach will be well placed to succeed in the year ahead.
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