US is the best place for drugs companies to invest, says boss of London-based GSK

"The chief executive of GSK yesterday declared the US to be the best place for pharmaceutical companies to invest. Emma Walmsley said the US led the world in launches of drugs and vaccines and, alongside China, was the best market for business development. She is the latest boss of a leading UK drugmaker to talk up business opportunities on the other side of the Atlantic, after AstraZeneca's Pascal Soriot hailed the vital importance of the US."

"The UK government, which has been trying to strengthen the phramaceutical sector, confirmed on Wednesday that the proportion of revenues from new medicine sales that companies need to pay back to the NHS would fall next year from 22.5% to no more than 15%. Reducing the record clawback rate was a central demand of the sector but negotiations broke down in late August. Several large companies, including AstraZeneca and US company MSD/Merck, then cancelled or paused major UK investments."

"The government has also been pressed into spending 25% more on new NHS medicines as part of a zero tariff deal with the US administration. Donald Trump, the US president, has criticised other rich countries for paying too little for drugs, leaving the US to shoulder much of the cost of medicines. US prices have historically been much higher, partly because of a complex system of intermediaries."

The US leads the world in launches of drugs and vaccines and, alongside China, ranks as a top market for pharmaceutical business development. UK drugmakers are emphasizing US opportunities while the UK government moves to reduce the revenue clawback on new medicine sales from 22.5% to no more than 15% next year. Negotiations previously collapsed, prompting some companies to cancel or pause UK investments. A zero-tariff deal with the US increases planned NHS medicine spending by 25%. NICE will raise the cost-effectiveness threshold and the Department of Health seeks limited ministerial power over thresholds, with medicine spending projected to rise about £1bn over three years.

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