UK's Drug Pricing Policies Face Mounting Criticism from Global Pharma Leaders
Eli Lilly Chief Executive Dave Ricks has intensified pressure on the UK government by declaring Britain "probably the worst country in Europe" for drug prices. In an interview with the Financial Times, Ricks highlighted the challenging market conditions that have prompted several pharmaceutical giants to pause or scale back investments in the country. The remarks are part of a broader backlash from industry leaders, including Merck and AstraZeneca, who have expressed similar concerns about the UK's approach to drug pricing and its impact on the life sciences sector.
The criticism centers on the UK's VPAG rebate scheme, an agreement between the government, the NHS, and the pharmaceutical industry aimed at managing the NHS' medicine bill while supporting patient outcomes. Ricks argued that the scheme effectively "charges us for our own success" and called for its abolition. He warned that unless the UK raises drug prices and revises its rebate policies, the country risks missing out on new medicines and significant investment. Media reports indicate that negotiations over the scheme have reached a deadlock, with the health department yet to comment on the status of the talks.
Eli Lilly's discontent is reflected in its recent business decisions, including reconsidering a £279 million biotech incubator project and halting shipments of its weight loss drug Mounjaro to the UK. Ricks noted that the UK's lower drug prices compared to other developed countries had led to situations where individuals from neighboring countries, such as France, traveled to purchase medications at lower costs, which he described as economically unsustainable for the company. He emphasized that the company's actions are a direct response to the UK's policy choices, stating, "That's the UK's choice, but we react to those choices."
In response, a UK government spokesperson reiterated its commitment to making the country a top destination for life sciences investment and expressed openness to further engagement with the industry. However, the ongoing retreat of major pharmaceutical firms underscores the urgency of resolving the impasse. As companies like Bristol Myers Squibb also voice concerns, the pressure mounts on the government to balance fiscal constraints with the need to attract and retain innovation-driven investments in the healthcare sector.
