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U.S. Ambassador Warns of Pharma Exits as U.K. Weighs Higher NHS Drug Payments

Talks center on higher price thresholds alongside changes to the NHS 'clawback' that could otherwise increase industry repayments.

Overview

  • Warren Stephens warned that U.S. drugmakers will cancel investments and close U.K. facilities unless NHS pricing rises.
  • Britain has proposed lifting the threshold at which the NHS pays for medicines by up to 25%, according to POLITICO.
  • Negotiations now focus on the VPAG ‘clawback’ cap, with companies warning that higher NHS spending without a higher cap would swell repayment bills.
  • U.K. negotiators are in Washington with what Stephens described as real-time progress, and ministers have extended by two weeks the deadline for firms to decide whether to exit the VPAG scheme.
  • Eli Lilly said the proposals are insufficient to revive its £279 million Gateway Lab in the U.K. as it invests €2.6 billion in a new manufacturing site in the Netherlands.