UK to Spend Up to 25% More on Innovative Medicines in Deal with US
The UK government has agreed to pay 25% more for innovative medicines by 2035 as part of a new zero-tariff deal with the United States. The agreement is estimated to cost an additional £3bn per year and will see the NHS, which currently spends £14.4bn annually on such therapies, double its allocation of GDP to buying innovative products.
Critics, including the Liberal Democrats, have accused the government of caving in to US pressure, with their health spokesperson Helen Morgan saying, "Trump demanded these pay rises to put Americans first and our government rolled over." However, NHS leaders argue that the deal will lead to tens of thousands of patients receiving groundbreaking new treatments.
The agreement also includes a significant boost to funding for the National Institute for Health and Care Excellence (Nice), which is responsible for determining whether medications are deemed good value for money. The increase in Nice's budget will allow it to approve more life-extending treatments, including those for cancer and rare conditions that currently exceed spending thresholds.
While some industry leaders have welcomed the deal, others have expressed concerns about the impact on NHS funding. Dr Andrew Hill, an expert on the pharmaceutical industry, warned that the increased costs will lead to less money for doctors, nurses, ambulances, and simple procedures that can save lives using low-cost generic drugs.
The US had threatened to impose a 100% tariff on UK-made medicines if they were not repatriated to the country. However, as part of this new deal, £6.6bn worth of UK-made medications exported to the US will now escape tariffs for at least three years.
In response to criticism that ministers have caved in to US pressure, Whitehall sources claim that the NHS had received hundreds of millions of pounds in funding earlier this year to cover the costs of the deal in its early years. However, they acknowledge that the issue of who pays will need to be settled during future spending reviews.
Overall, the agreement represents a significant shift in the UK's approach to drug pricing and procurement. While some have welcomed the increased investment in innovative medicines, others remain concerned about the impact on NHS funding and the long-term sustainability of this new deal.
The UK government has agreed to pay 25% more for innovative medicines by 2035 as part of a new zero-tariff deal with the United States. The agreement is estimated to cost an additional £3bn per year and will see the NHS, which currently spends £14.4bn annually on such therapies, double its allocation of GDP to buying innovative products.
Critics, including the Liberal Democrats, have accused the government of caving in to US pressure, with their health spokesperson Helen Morgan saying, "Trump demanded these pay rises to put Americans first and our government rolled over." However, NHS leaders argue that the deal will lead to tens of thousands of patients receiving groundbreaking new treatments.
The agreement also includes a significant boost to funding for the National Institute for Health and Care Excellence (Nice), which is responsible for determining whether medications are deemed good value for money. The increase in Nice's budget will allow it to approve more life-extending treatments, including those for cancer and rare conditions that currently exceed spending thresholds.
While some industry leaders have welcomed the deal, others have expressed concerns about the impact on NHS funding. Dr Andrew Hill, an expert on the pharmaceutical industry, warned that the increased costs will lead to less money for doctors, nurses, ambulances, and simple procedures that can save lives using low-cost generic drugs.
The US had threatened to impose a 100% tariff on UK-made medicines if they were not repatriated to the country. However, as part of this new deal, £6.6bn worth of UK-made medications exported to the US will now escape tariffs for at least three years.
In response to criticism that ministers have caved in to US pressure, Whitehall sources claim that the NHS had received hundreds of millions of pounds in funding earlier this year to cover the costs of the deal in its early years. However, they acknowledge that the issue of who pays will need to be settled during future spending reviews.
Overall, the agreement represents a significant shift in the UK's approach to drug pricing and procurement. While some have welcomed the increased investment in innovative medicines, others remain concerned about the impact on NHS funding and the long-term sustainability of this new deal.