The UK is also set to be hit by zero-tariff pharmaceuticals dealing with the rise in NHS drugs
The UK government is preparing to sign a major pharmaceuticals deal with Washington that will remove tariffs on drugs imported into the United States and allow Britain to spend more on NHS drugs.
The deal, which is expected to be announced within days, follows months of intense negotiations with the Trump administration and comes after a series of warnings and a drawdown of investment from the drugmaker from the UK.
According to industry sources, the agreement will see the government reduce the rate of reimbursement to the industry for drugs with a product sold to the NHS and raise the limit used in the NHS value assessment Under the quality-adjusted life year (Qaly) – which assesses the cost of treatment related to the healthy years it delivers – the upper limit will increase by 25 per cent from the current £30,000 per year.
The government also agreed to increase the share of the NHS budget allocated to medicines, a long-standing demand of global pharmaceutical companies.
The discussion was led by Varnon Chandra, the Prime Minister’s senior business advisor, and the Prime Minister, Science Minister and former GSK Executive. The Trump administration wants to narrow the gap between high drug prices and low prices in countries like the UK, with tariffs threatening to suppress change.
Alongside government-to-government talks, pharmaceutical industry leaders in London and Washington are taking part in talks aimed at reducing conflicts and restoring investment confidence.
Relations between the industry and the UK government have deteriorated significantly this year, as drugmakers have come to terms with the high costs of the NHS’s voluntary branded medicines, access and growth (VPAG) scheme. The scheme aims to curb spending on NHS medicines while encouraging innovation, but industry leaders say UK discount rates have made the country unattractive.
The situation escalated in September when several pharmaceutical giants halted or canceled major UK investments. AstraZeneca stopped the issuance of $ 200 million in Cmunbridge, and Eli Lilly was stopped in the London part of the planned London. Merck / MSD moved away from the £1 billion London R & D Centre, and several manufacturers have signaled that UK sites may close unless prices are agreed.
The US ambassador warned last month that Global Pharma groups could “vote with their feet” unless the UK acted. AstraZeneca was among the first to cut a separate amount dealing directly with the Trump administration.
Formal talks between the ABPI and the Department of Health broke down in August after Health Secretary Wes Streetleng issued an ultimatum to accept what he called a “kindness proposal”. After the backlash, vallance told MPs in September that the UK needed to increase spending on the NHS – a sign that helped save the VPAG controversy in the wider debate in Washington.
Industry figures say the new deal could ease tensions, restore investment and provide a stable footing for drug development in the UK – although long-term targets for NHS budgets remain to be seen.
