UK Pharma Tariff Deal: NHS Rebates to Fall in 2026

The UK government announced a reduction in the percentage of revenue pharmaceutical firms need to pay back to the NHS in 2026 following a deal with the U.S. This move is part of a broader agreement to boost spending on new medicines and address industry concerns, aiming to make Britain more competitive.

The British government has announced a significant reduction in the revenue percentage that pharmaceutical firms will need to repay to the NHS in 2026. This follows a new tariff deal with the United States, intending to revitalize the sector and address longstanding industry concerns.

The deal with the U.S. includes a promise to eliminate tariffs on UK pharmaceuticals and medical devices, encouraging growth and investment. The UK government has agreed to a rebate rate under the VPAG scheme that will not exceed 15% for the first three years, setting a headline payback rate of 14.5% for 2026.

The Association of the British Pharmaceutical Industry has welcomed the move, noting it as a positive step towards competitiveness, though they highlight the need for further reforms. The agreement signifies a strategic pivot in the UK's valuation of new medicines, encouraging more cost-effective drug adoption to enhance patient care.

(With inputs from agencies.)