NHS could pay 25% more for medicines under plan to end row with drugmakers and Trump

"The government has drawn up fresh proposals to end a standoff with the industry over drug pricing, including changing the cost-effectiveness thresholds under which new medications are assessed for use on the NHS, according to industry sources. The row has been cited as one of the reasons why big companies in the sector, including MSD (known as Merck in the US) and AstraZeneca, have cancelled or paused investments in the UK in recent weeks, while ramping up investments in the US."

"The Liberal Democrats immediately attacked the move, first reported by Politico, asking how much it would cost and whether it would lead to cuts elsewhere in the NHS. The science minister, Patrick Vallance, has publicly acknowledged that the UK's spending on new medicines needs to rise, from 9% of overall NHS spend, which is below drug spending in the US and many other European countries."

Ministers plan to increase NHS payments to pharmaceutical firms by up to 25% following talks with the US administration and drugmakers. Proposals include raising the cost-effectiveness thresholds used to assess new medications for NHS use. Several large companies, including MSD and AstraZeneca, have cancelled or paused UK investments while boosting US investments. The health department is in a standoff with the Treasury and No 10 over funding, with Downing Street resisting new spending commitments in the upcoming budget. Patrick Vallance acknowledged that UK spending on new medicines, at 9% of NHS expenditure, needs to rise. The industry body called for thresholds of 40,000-50,000 and index-linking, which would shift more NHS budget to medicines.

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