By Ramesh Jassal, Heligan Group
The Midlands life sciences sector stands at a pivotal juncture as global health policy undergoes significant transformation. Recent developments in the United States, particularly under the proposed leadership of Health Secretary Robert F. Kennedy Jr., suggest sweeping changes to key health agencies such as the FDA, HHS, CDC, and NIH.
These include large-scale layoffs, restructuring, and a shift in regulatory priorities, including a potential new mandate for placebo-controlled trials for all new vaccines. Ongoing discussions around removing or weakening vaccine liability protections for pharmaceutical companies signal a paradigm shift that could reshape global investment and innovation strategies. Given that the US accounts for approximately 40–50% of global pharmaceutical consumption, its influence on the world stage cannot be ignored.
To remain competitive and attractive to investors, the Midlands must proactively align with these geopolitical shifts. The region’s life sciences ecosystem, anchored by academic excellence, clinical trial capabilities, and a growing innovation infrastructure, must double down on its strengths while adapting to new global standards.
First, innovation must be at the heart of the Midlands’ strategy. With the FDA emphasising rigorous placebo testing and safety validation, Midlands-based companies should prioritise generating robust clinical evidence and ensuring transparency throughout their R&D processes. This will not only align with emerging US standards but also build trust with global stakeholders.
Second, artificial intelligence (AI) offers a transformative opportunity. AI can accelerate drug discovery, optimise clinical trial design, and enhance regulatory compliance. The UK government’s £100 million AI Life Sciences Accelerator Mission aims to leverage AI to develop therapies for previously incurable diseases.
Midlands firms should capitalise on this initiative to stay ahead of the curve. Recent US investments underscore this trend: Eli Lilly partnered with BigHat Biosciences to use AI for antibody development, while DeepMind’s AlphaFold has revolutionised protein structure prediction. Waters Corporation’s $17.5 billion merger with BD Biosciences and Lantheus Holdings’ $750 million acquisition of Life Molecular Imaging further highlight the strategic value of AI in life sciences.
In addition, artificial intelligence is revolutionising patient recruitment in clinical trials. AI technologies can now identify ideal clinical trial candidates with remarkable accuracy by analysing electronic health records, medical histories, and demographic data. This precision not only improves enrolment rates but also significantly reduces per-patient costs. According to a study published in Nature Digital Medicine, AI-powered recruitment can cut clinical trial costs by up to 70% and shorten timelines by as much as 40%. This efficiency enables Site Management Organisations (SMOs) to operate with leaner staffing models while maintaining high performance. A notable example is Carta Healthcare’s acquisition of Realyze Intelligence, an oncology-focused AI firm that matches patients to clinical trials using clinician-trained algorithms. Realyze’s technology enabled UPMC Hillman Cancer Center to match seven times more patients and double enrolment rates. Such advancements underscore the strategic value of AI in streamlining clinical operations and enhancing trial outcomes.
Third, university training and skills development are critical. The Midlands’ universities must align their curricula with the evolving needs of the life sciences sector, emphasising interdisciplinary training in AI, biotech, regulatory science, and health economics. The ABPI’s Life Sciences 2035 report projects a need for 70,000 additional jobs by 2035 and highlights the importance of vocational and practical training. Many universities are not yet equipped for the rapid advancements in AI, and students risk pursuing degrees that may become obsolete. A shift towards apprenticeships and industry-led training programmes is essential to ensure a workforce ready for the future.
Fourth, policy and regulatory agility will be essential. The UK’s Life Sciences Sector Plan and Industrial Strategy outline measures to streamline clinical trials, enhance regulatory responsiveness, and attract investment. The Midlands must actively implement these policies at the regional level, creating a low-friction environment for startups, scale-ups, and global investors. This includes fully leveraging the region’s integrated 'bench to bedside' ecosystem and promoting assets such as the Edgbaston Medical Quarter and the new Health and Innovation Campus at Battery Park.
Finally, the Midlands must position itself as a proactive partner in the global life sciences arena. As the US redefines its health priorities and investment criteria, regions that demonstrate readiness, resilience, and regulatory alignment will attract more funding and partnerships. With the UK benefiting from favourable tariffs of 10% from the US, we should continue to see strong appetite from US buyers interested in UK healthcare assets. Added to this, a weak pound versus the dollar is likely to increase overseas interest from the US, particularly from investors seeking strategic footholds in Europe, including those aligned with more protectionist or domestic investment agendas. By embracing this new paradigm, innovation must demonstrate clear material benefit over placebo, and safety and accountability remain paramount.
The region is already making strides. The West Midlands Health Tech Innovation Accelerator (WMHTIA), part of the £100 million Innovation Accelerator programme, has supported over 100 health tech companies, created or safeguarded 110 jobs, and secured £28.4 million in co-investment. With a £10 million funding boost, WMHTIA is set to further support innovative businesses, researchers, and entrepreneurs.
In conclusion, the Midlands has the foundation to thrive amid global change. By integrating innovation, AI, education, and policy reform, it can not only adapt to the evolving US influence but also lead in shaping the future of life sciences in the UK and beyond.
*Ramesh Jassal is a Partner at Heligan Group, with over 15 years of mid-market M&A advisory and 20-plus years of healthcare industry experience. He is recognised as a leading UK healthcare M&A advisor, specialising in health and social care, medical equipment, devices, and pharma/life sciences.
