U.S.-UK Pharmacy Pact: Tariff-Free Trade and Drug Price Revamp

The U.S. and UK have signed a deal granting zero tariffs on British pharmaceuticals. In return, the UK will increase spending on U.S. medicines and update its drug valuation system. NICE's cost-effectiveness threshold will rise, boosting access and investment in innovative drugs and potentially reshaping the healthcare landscape.

The United States and the United Kingdom have struck a significant trade agreement focusing on the pharmaceutical sector, which promises to exempt UK-made medicines, drug ingredients, and medical technology from specific tariffs. This deal involves a promise by Britain to increase its expenditure on U.S. pharmaceuticals by 25%.

The agreement includes major changes to the value-assessment framework used by NICE, boosting its "quality-adjusted life year" threshold from 30,000 to 35,000 pounds. This adjustment is expected to improve drug accessibility for British patients and encourage pharmaceutical investments, according to industry representatives.

Pharmaceutical firms like AstraZeneca and GSK are hopeful that the agreement will position the UK as an appealing environment for life sciences, forecasted to enhance their long-term global competitiveness. The U.S. and UK move forward on tariff-relief frameworks, emphasizing strategic economic cooperation in the sector.

(With inputs from agencies.)