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In return, Britain has agreed to give zero tariff to America on pharmaceutical products imported into the country. NHS More expenditure on medicines.
Import tax on medicines and treatments will be 0% for three years UK government Said.
trump The administration said the deal would allow British pharmaceutical companies to invest more in the US and create more jobs.
It comes after warnings that US pharma companies would close their sites in the UK if the NHS does not pay more for drugs.
Earlier this month, US Ambassador Warren Stephens said US businesses would put off future investment if “changes were not made rapidly”.
The dispute has been seen as a reason why US-based Merck and AstraZeneca have canceled or halted investments in the UK in recent months.
As part of the deal, the government has agreed to raise the upper limit for which it can purchase new medicines.
It says this means that new medicines that were previously rejected for not being cost-effective enough may be approved – such as breakthrough cancer treatments and treatments for rare diseases.
The agreement also includes reducing reimbursement rates on NHS drug prices by 15% from 2026.
This is the amount that pharmaceutical companies pay back to the NHS to ensure that it does not spend more than its allocated budget for branded medicines.
Secretary of Science and Technology Liz Kendall Said: “This important deal will ensure UK patients get the cutting-edge medicines they need sooner, and our world-leading UK companies will continue to develop treatments that can change lives.”
Business and Trade Secretary Peter Kyle said the deal “guarantees that UK pharmaceutical exports – worth at least £5 billion a year – will enter the US tariff-free”.
The 0% rate will apply to all UK pharmaceuticals exports for at least three years, which the government says is the lowest it has offered to any country.
The Association of the British Pharmaceutical Industry (ABPI) said the trade deal with the US is “an important step towards ensuring patients can access the innovative medicines needed to improve wider NHS health outcomes”.
Richard Torbett, chief executive of ABPI, said: “This should put the UK in a stronger position to attract and retain global life sciences investment and advanced medicinal research.
“These commitments begin to address industry concerns over NHS access to medicines and the UK’s record-high and unpredictable payment rates.”
conservative shadow business secretary Andrew Griffith welcomed the deal, but criticized the lack of “detail” on the part of the government.
He said: “There is still no clarity on how the NHS will finance higher drug costs or how this agreement will actually help British patients.”