UK-US Pharma Deal: Impact on Pricing, Investment, and NHS Spending
A new trade agreement introduces three-year zero tariffs on UK pharmaceutical exports to the US, alongside capped price rebates of 15% and a 25% increase in NICE baseline price thresholds at the lower end.
GSK CEO Emma Walmsley described the deal as a positive step, highlighting the US as the leading market for new drug and vaccine launches. She noted that the US and China are the best markets for business development and that GSK invests about three times more in the US than in the UK.
Despite these developments, the UK is not suddenly becoming a life-sciences leader. The US remains far ahead regarding spending on new medicines, depth of research, manufacturing capabilities, and startup funding.
Investment risks tied to UK pricing arrangements are illustrated by Merck's decision to scrap a £1 billion London research center.
The agreement is expected to increase the NHS's pharmaceutical spending by approximately £3 billion annually, which is part of a trade-off to secure access to medicines.
The UK government plans to raise the share of GDP spent on new medicines to 0.6% within a decade, with post-2029 'voluntary' pricing terms still to be negotiated.
Additionally, a £600 million-backed Health Data Research Service aims to accelerate access to NHS data for researchers as part of the broader life-sciences strategy.
