Historic U.S.-UK Deal Slashes Tariffs on Medical Innovations

The United States and Britain have reached an agreement to eliminate tariffs on pharmaceutical products and medical technology, leading to increased British spending on medicines. The deal involves the UK's NHS raising its budget for medicines and adapting NICE's appraisal framework for drug cost-effectiveness.

The United States has announced a groundbreaking agreement with Britain to eliminate tariffs on pharmaceutical products and medical technology. This move will result in Britain significantly increasing its expenditure on medicines.

According to U.S. Trade Representative Jamieson Greer, the deal includes a 25% rise in the net price the UK pays for new medicines. In return, UK-produced medicines, drug ingredients, and medical technology will enjoy exemption from Section 232 tariffs.

The agreement signifies a major shift in the UK's NICE framework, which assesses the cost-effectiveness of new drugs for the NHS. Industry sources reveal that this change aligns with a U.S. agenda to ensure higher foreign payment for American medicines.

(With inputs from agencies.)