Health or Wealth? US Trade Deal Puts NHS Drug Costs Under the Microscope

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The recently unveiled UK-US Economic Prosperity Deal has raised significant worries about the future costs of medicines for the National Health Service (NHS). US pharmaceutical companies are advocating for higher prices and expanded market access in Britain. Although the government claims that the NHS is "off the table," recent discussions and statements from the industry indicate that drug pricing is a key topic in the ongoing negotiations, sparking fears that the NHS might end up paying millions more to American drug companies.

Key Highlights
Deal Announced, Details Emerging: On May 8, 2025, the UK and US reached an agreement on the Economic Prosperity Deal, with more details coming to light the next day. While this deal is being celebrated as a positive first step, specifics regarding pharmaceuticals are still being negotiated.

Pharma Industry Push: US pharmaceutical companies are actively lobbying for changes to the NHS drug pricing system, seeking to secure higher prices for their products. The US government has long contended that the NHS's ability to negotiate lower prices undermines American companies and hampers innovation.

VPAS Under Scrutiny: The Voluntary Scheme for Branded Medicines Pricing and Access (VPAS), which limits NHS drug spending, is central to the negotiations. US pharmaceutical firms are pushing for a revised agreement that acknowledges the value of innovative medicines and offers a more stable pricing environment.

Tariff Threats Loom: The US has warned of potential tariffs on UK pharmaceutical exports if a favorable pricing agreement isn't reached, heightening the stakes for both patient access and industry stability.

NHS Access Concerns: Despite the government's repeated assurances, campaigners and opposition politicians caution that behind-the-scenes meetings with US drug companies could lead to increased NHS drug costs, jeopardizing public finances.

No Immediate Change, But Uncertainty Remains: While the current agreement doesn't immediately change NHS drug procurement, ongoing negotiations mean that the NHS could face rising costs in the near future if US demands are met.

"US healthcare corporations have long viewed our National Health Service as a potential cash cow," warns campaign group We Own It.

Source: Sky News, Data Insights Market, ABPI, The Independent, Bilaterals, DeSmog