BritishAmerican Business CEO Duncan Edwards said:

“BritishAmerican Business (BAB) welcomes the announcement from the UK and US governments regarding the new pharmaceutical ‘agreement in principle’ – you can see how each government has positioned it by reviewing the statements from the USTR here and the UK government here.

“While we have not yet seen the detailed text, what seems to be clear is that UK pharma companies will be exempt from US tariffs for the remaining period of the Trump administration. The UK will also increase the potential payments for newly developed drugs and treatments through an increase in the assessed value of additional healthy years of life, by up to 25 per cent, in addition to capping the Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG) for new medicines at 15 per cent. Our understanding is that pricing for the existing products purchased by the NHS is unchanged and that these new terms will only apply to new treatments.

“Initial reaction from BAB members in the sector is cautiously positive, reflecting the complexity of the issues involved and the seriousness of the consequences if progress had not been made. Importantly, the UK government has committed to doubling spend on innovative medicines over the coming 10 years.

“BAB has been advocating on this issue for several years and we have always recognized the enormous political challenges around healthcare, especially in a publicly funded system like the UK’s, so we are pleased that real energy has been put into trying to find a way forward.  Whether this agreement is enough to get the sector back on track in the UK we will not be able to assess for a while, but it feels like a start.”