The chief executive of GSK, Emma Walmsley, announced that the United States is currently the best destination for pharmaceutical companies to invest. During a recent interview, Walmsley emphasized that the US leads the world in the launch of new drugs and vaccines, positioning it alongside China as a prime market for business growth. This statement follows similar sentiments expressed by Pascal Soriot, CEO of AstraZeneca, who highlighted the “vital importance of the US” for the pharmaceutical sector.
These remarks come at a crucial time for the UK pharmaceutical industry, which has faced challenges regarding investment. On March 15, 2024, the UK government revealed plans to reduce the revenue clawback rate from new medicine sales to the NHS from 22.5% to a maximum of 15%. This reduction had been a key demand from industry leaders, but negotiations had previously stalled in late August. The announcement of the clawback reduction aims to rejuvenate investment in the sector, which has seen several major companies, including AstraZeneca and US-based MSD/Merck, either cancel or pause significant investments in the UK.
In a broader context, the UK government has also committed to increasing spending on new NHS medicines by 25% as part of a zero tariff deal with the US administration. This comes in response to criticism from former US President Donald Trump, who argued that wealthier nations need to contribute more towards the cost of pharmaceuticals, thereby alleviating financial pressures on the US market.
As UK pharmaceutical companies adjust their strategies, the National Institute for Health and Care Excellence (NICE) will, for the first time, raise the price threshold at which new medicines are deemed cost-effective. Additionally, a recent consultation document from the UK Department of Health proposed granting ministers some authority to set these cost-effectiveness thresholds, highlighting a significant shift in regulatory policy.
According to the Association of the British Pharmaceutical Industry (ABPI), spending on medicines could rise by approximately £1 billion over the next three years. This increase raises concerns about potential impacts on funding for healthcare staff and equipment. The government clarified that the revenue clawback for new medicines is set to drop to 14.5% in 2026, while payment rates for older branded medicines will remain unchanged, fluctuating between 10% and 35%.
Richard Torbett, CEO of the ABPI, expressed cautious optimism regarding the reduced clawback rate. He noted that while the proposed 15% cap offers companies greater certainty, it represents merely a first step toward making the UK market more competitive. Torbett added, “Payment rates remain much higher than in similar countries, and there is work to do to accelerate the NHS’s adoption and use of cost-effective medicines to improve patient care.”
In her interview with the BBC, Walmsley asserted that GSK would not hesitate to pursue opportunities in the US, where the company generates half of its revenue. GSK has recently announced plans to invest up to $30 billion (£23 billion) in the US by 2030, further solidifying its commitment to the American market as a focal point for its growth strategy. This investment is indicative of a broader trend among pharmaceutical companies, as they increasingly look across the Atlantic for favorable business conditions.
