Big news on the trade front! The United States and the United Kingdom have just announced a significant agreement set to shake up the pharmaceutical and medical technology sectors. Think of it as a win-win, with each country making key concessions to benefit the other.
Here’s the lowdown: UK-made medicines, drug ingredients, and medical technology will now enjoy zero tariffs when entering the US market. That means no more import taxes on these vital products, giving British companies a distinct advantage – something few other nations have achieved. For a sector that makes up a fifth of all UK exports to the US, this is a huge boost!
But what’s the catch? In return, the UK has agreed to increase the price it pays for new US medicines by 25%. This move is part of the US’s broader effort to get wealthy countries to pay more for its innovative drugs.
Crucially, the deal also includes a major change to how the UK’s National Institute for Health and Care Excellence (NICE) evaluates new drugs. NICE sets the standard for whether a medicine is cost-effective enough for the NHS to fund. Its “quality-adjusted life year” threshold will rise from £30,000 to £35,000. This shift means that more new, potentially expensive, medicines could be deemed good value and become available to UK patients, fostering innovation and investment from drug makers in the UK.
While the UK is a smaller market for global pharma giants, this agreement aims to make it a more attractive hub for life sciences. Both nations hope it will drive investment and innovation, ultimately benefiting patients with access to cutting-edge treatments. It’s a strategic partnership designed to strengthen economic ties and healthcare advancements across the Atlantic.
Source: https://www.bordermail.com.au/story/9124456/us-uk-to-agree-zero-tariffs-on-pharmaceuticals-report/
