Strategic partner vs single purchaser? The Life Sciences Sector Plan treads a fine line

In what we all know to be a complex global life sciences innovation ecosystem, the UK has long held a theoretical advantage: a single payer system with the potential to act as a unified, strategic customer and innovation partner.  

Yet, in practice, and despite a litany of strategic plans and visions, it has remained just that – a theory.  

There are multiple causes for this – some laid out in stark terms in the LSSP – leading to innovation access and uptake in the UK to be comparatively ‘low and slow’. 

But if you take a step back and look at the LSSP in conjunction with other policy, including the 10YHP, what’s striking is that it signals a more intentional and assertive approach from Government to better coordinate, manage and utilise its innovation purchasing power.  

The Government has woken up to its ability (and financial need) to turn purchasing potential into strategic gain. 

Why do I say this? Alongside mechanisms launched in the NHS 10YHP, including the Single National Formulary and enhanced powers to NICE, there is a clear shift to streamline procurement, align incentives, and extract better value.  

Taken together these include: 

• Mandating and simplifying national procurement routes 

• Aligning NICE/MHRA/contracting decisions 

• Introducing new pricing tools (proportionate approach on ISP, confidential primary care pricing) 

• Reducing local duplication and variation (Innovator Passport, Single Formulary) 

• Giving NHS Supply Chain a growth and innovation remit 

At surface level there are positive ambitions behind many of these – faster appraisals, streamlined and coordinated decisions, reduction of variation. Yet, the multiple caveats based on value, affordability and cost effectiveness spread throughout the LSSP temper this positivity and instead pose more questions about whether theory will finally be turned into reality. 

Taking a few key policies in turn: 

There is a significant commitment to place a growth mandate on NHS commercial activity, including NHS Supply Chain and medicines procurement frameworks. Traditionally focused on cost containment, NHS procurement is now being asked to support economic growth and innovation as part of its core purpose.  

This marks a cultural shift, with recognition that procurement decisions are not just about savings, but about shaping markets, signalling demand, and supporting national industrial strategy.  

However, there’s a flip side to this that presents risk. Companies may face stronger pricing pressure without a corresponding commitment to faster or broader uptake. And while there’s greater transparency being mooted (through mechanisms including a refreshed Innovation Scorecard) it’s unclear what penalties, if any, there are for falling short. In essence, the NHS may become a more strategic negotiator, but not necessarily a better customer. 

The Plan also reiterates the introduction of a Single National Formulary, first announced in the 10YHP. This seeks to remove one of the longstanding barriers to consistent access: local prescribing variation.  

By creating a single list of approved products for use across the NHS, the Government aims to reduce duplication, speed up access, and free up clinician time currently spent navigating local bureaucracy. That’s what it says on the surface, but beyond efficiency, the formulary also carries strategic clout. By consolidating demand into a single national framework, the NHS can apply stronger pricing expectations and use inclusion as a lever to negotiate value.  

In effect, it offers companies the prospect of system-wide access in exchange for commercial terms that align with national affordability. 

On the MedTech and diagnostics side, the new Rules Based Pathway and Innovator Passport offer the promise of nationally streamlined adoption routes. These tools aim to remove the friction caused by individual Integrated Care Systems and hospital trusts repeating their own procurement evaluations.  

Instead, centrally validated products, backed by evidence and pre-approved standards, would gain smoother access to NHS markets. While voluntary at the outset, the logic of these reforms is clear: creating a ‘procure once, use many times’ model that reduces waste and accelerates uptake. 

Together, these changes represent a more proactive and coordinated use of NHS purchasing power. From national level frameworks to local adoption tools, the Government is aligning the levers from NICE, to NHS England, to NHS Supply Chain to create a more unified commercial front. 

However, this beefing up of purchasing power will need to tread a fine line and must be handled with care. A positive story can be spun about streamlining driving efficiency and scale. But on the flip side there are risks that an overly muscular and centralised buyer approach becomes too rigid or suppresses innovation by dictating terms to industry without the flexibility to account for risk, complexity, or future value.  

The challenge is to act as a strategic partner, not just a dominant purchaser. If the UK is to remain globally competitive, it must ensure that these reforms enable faster, fairer access without discouraging companies from bringing their best innovations to the UK.