Leaving the EU – implications for the life sciences and medical technology industry – Lexology

With the UK set to leave the EU on 31 January 2020, there are still no guarantees as to the terms on which this will happen. An agreement may be reached during the transition period ending on 31 December 2020, however, if this is not the case a no deal exit may yet happen implying a series of potentially disruptive consequences for the life sciences and healthcare industry.

While specific sectors have already benefited from regulatory revisions in anticipation of a Brexit without a deal, businesses should similarly prepare to the eventuality of the UK becoming a third-party country trading with the EU on World Trade Organisation terms, and to what it means for their activities. With this in mind, we have compiled a few key points for the life sciences and health industry to consider in their future activities.

Bad news: some sectors such as health and life sciences are susceptible to disruption

Good news: the health and life sciences sector might benefit from regulatory revisions

Our preparedness advice to business potentially affected by Brexit

Conclusion

Although the exact impact of Brexit remains unknown, it is already certain that the UK will have to recreate its own legal order to some extent. We can reasonably expect to witness the emergence of an a la carte regulatory regime, which will increase the uncertainty of contract law and business relationships with the EU for the next couple of years. The Chancellor has recently warned that there will not be regulatory alignment with the EU after Brexit, insisting that businesses will need to adjust to new UK regulations. However, given the UKs usually innovative and liberal legislative framework, health and medical technology businesses should be limitedly affected by the prevalence of EU legislation in the sector. Businesses will need to be prepared to cope with the disruptive impact of Brexit, but they can already count on the UK governments intention to adjust rapidly to EU legislation beneficial to the industry.

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Leaving the EU - implications for the life sciences and medical technology industry - Lexology