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Michigan Post > Blog > Business > Pharma bosses and ministers to form future drug pricing regime
Business

Pharma bosses and ministers to form future drug pricing regime

By Editorial Board Published December 2, 2025 2 Min Read
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Pharma bosses and ministers to form future drug pricing regime

A number of the world pharmaceutical trade’s prime executives are to kind a brand new panel with the federal government aimed toward devising a brand new pricing regime for key medicines.

The transfer follows this week’s announcement of a brand new drug-pricing deal between the UK and US which is able to see the NHS pay 25% extra for branded medicines, in addition to lowering the ‘clawback tax’ that drug firms pay to the NHS.

The settlement signifies that the UK will keep away from tariffs on medicines exports to the US for a minimum of three years, an final result the federal government was decided to safe.

Business sources stated the brand new working group was anticipated to look at a spread of choices for changing the present Voluntary Scheme for Branded Medicines Pricing and Entry (VPAG) when it expires in about three years’ time.

These choices are prone to embrace an outcomes-based mannequin which might entail variations in drug pricing, in addition to exploring a hyperlink between pricing and the extent of prescribed drugs firms’ drug improvement exercise which takes place within the UK.

The VPAG scheme has drawn the ire of prescribed drugs teams, which have been warning that they may delay or cancel billions of kilos of funding in Britain because of its continued adoption.

Liz Kendall, the science and know-how secretary, described this week’s announcement as a “vital deal [that] will ensure UK patients get the cutting-edge medicines they need sooner, and our world-leading UK firms keep developing the treatments that can change lives”.

“It will also enable and incentivise life sciences companies to continue to invest and innovate right here in the UK,” she added.

The Division for Science, Innovation and Expertise declined to touch upon the brand new working group.

TAGGED:bossesdrugfutureministersPharmapricingRegimeshape
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