Pharmaceuticals Get a Boost: Zero Tariff Deal Between UK and US

The UK and US are set to announce a zero-tariff agreement for pharmaceuticals, enhancing NHS medicine budget and changing NICE's appraisal framework. This comes amid expected price increases for new medicines and US pressure for Europe to match American drug costs.

The United Kingdom and the United States are on the brink of unveiling a landmark deal to eliminate tariffs on pharmaceuticals. According to insiders, the announcement is scheduled for Monday at the White House, signaling a significant shift in transatlantic trade.

The agreement is anticipated to increase the proportion of the NHS budget allocated to medicines and modify NICE's value appraisal framework. This change will raise the quality-adjusted life year threshold by 25%, impacting how new drugs are assessed for cost-effectiveness.

Despite expectations of higher prices for innovative drugs, existing and generic drug costs might remain stable. The deal underscores the US push for European nations to align their drug costs more closely with those in the US, as pharmaceutical giants like AstraZeneca delay investing in Britain due to stringent conditions.

(With inputs from agencies.)