techUK statement on the UK–US pharmaceutical deal

2 Dec 2025 01:38 PM

The UK-US pharmaceuticals agreement marks a major step forward for investment, innovation and patient access. With new tariff-free trade, updated NICE thresholds and VPAG reforms, the UK is creating the right environment for a thriving life sciences ecosystem.

As the UK’s trade association for the technology sector with a strong and diverse health and life sciences membership, techUK welcomes the landmark UK-US pharmaceuticals agreement as a transformative step in strengthening the UK’s position as a global life sciences leader.

This deal not only secures access to vital medicines for NHS patients but also creates the right conditions for sustained investment and innovation across the sector. By securing zero tariffs on UK pharmaceutical exports and maintaining preferential terms for medical technologies, the UK is sending a clear signal to global investors that it is committed to fostering a thriving life sciences ecosystem. This aligns closely with techUK’s work to champion international trade as a driver of growth and innovation for UK health and care technologies.

Importantly, NICE will update its cost-effectiveness thresholds to £25,000–£35,000 per QALY (Quality Adjusted Life Year) and introduce a new value set for health-related quality of life. These changes will enable faster approval of breakthrough treatments, including therapies for cancer and rare diseases, ensuring patients benefit from cutting-edge innovation sooner. Combined with the UK’s mitigations under the US ‘Most Favoured Nation’ pricing initiative, these reforms will encourage global pharmaceutical companies to prioritise the UK for early launches, reinforcing the UK Government’s ambition to be Europe’s leading life sciences economy by 2030.

Alongside this, reforms to the Voluntary Scheme for Branded Medicines Pricing and Access (VPAG) will ease the financial burden on innovators by capping repayment rates for newer medicines at 15% for 2026–2028. These changes, combined with a commitment to design a more sustainable model from 2029 onwards, will give companies the confidence to invest in the life sciences sector.

techUK looks forward to working with government and industry partners to ensure these commitments translate into tangible benefits for patients, businesses, and the wider health and care system, while continuing to advocate for policies that support international trade and sustainable growth across the sector.

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